Friday, September 11, 2009

Is Your DEBIT CARD Busting Your Budget?

Because so many of us find ourselves in positions where each dollar is becoming more and more important, when I found this article, I knew the information needed to be passed along.

Often deposits - even "direct deposits" take days to clear a bank. A deposit to our accounts on the 1st may not show up as available funds to our accounts until the 3rd or 4th or even the 5th. Unfortunately, the checks we write or the debit card we use, withdraw funds from our account immediately. We think you have money in the bank. The bank says we do not.

My Wells Fargo bank charges a $35 fee for every transaction involving "Insufficient Funds". That means that a $5 purchase can cost me $40 so you can see how a couple of inexpensive purchases can result in the loss of hundreds of dollars.

This September 9, 2009 New York Times article by Ron Leiber and Andrew Martin details just such banking practices, is quite and eye-opener and provides ample motivation for us all to sit down for a policy discussion with our bankers. The information I gathered actually inspired me to move my accounts to a small, local bank.


cindylbaker said...

Thank you for the article. That's incredible! I look forward to much more. I love your creative money saving and FUN ideas! I love my cooking days when I cook several different things and freeze "dinner size" portions! I'm all about cooking just don't have the time EVERYday. I love the quick and easy homemade freezer meals. You're brilliant! Keep the ideas coming!

Anonymous said...

Great article on "overdrawing" the account....very easy to do with a debit card in hand. I found out years ago that just a couple hundred dollars in a "joined" savings account can save a lot of 35 dollars. I have "crown checking" If you are over 65 look into this. For no fee whatsoever, my bank (WACHOVIA) WILL AUTOMATICALLY COVER INDISCRETIONS, BY TAKING THE MONEY OUT OF MY SAVINGS. WHEN MY DIRECT DEPOSIT CHECK CLEARS, I SIMPLY TRANSFER THE FUNDS BACK TO SAVINGS. NO HARM...NO FOUL...BEST OF ALL NO CHARGE.