Consumers sick of bank fees flocked to credit unions during the recession. While credit unions have had a reputation of being easier on their customer’s pocketbooks, some changes like the Credit Card Act (CCA) of 2009 have somewhat leveled the field. It’s true that for some types of banking a credit union can be your best choice, but don’t assume you won’t get stuck with fees just because it’s a credit union. Many may offer free checking accounts which banks have long ago dropped, but they do have other ways to make up for the lost revenue that can end up hurting you more. When in the market for a place to put your money, make sure you understand all the services and associated costs before you make a decision. (more…)
Banks and Banking
When you bring home the bacon, do you still put it in a piggy bank? Probably not. Chances are you have an account with a large national bank or a smaller local bank, and may not be receiving the best interest rate. Most banks don’t even return one percent on a savings account, while online banks and credit unions may pay you much more. Don’t settle for a 0.15% interest rate when you can get higher rates, rewards and perks with a different establishment. Bigger and better is out there, you just have to know where to look. (more…)
In one word: Yes. However, most of the increases are being seen online and not at your local bank branch. For savers who have had little incentive to put money away due to low interest rates, the new increases aren’t spectacular, but they are a trend in the right direction. If the trend continues, it could be the start of a pricing war that is going to benefit online savers the most. (more…)
It seems unimaginable in modern times, but 8.2 percent of the U.S. population does not have a bank account. That’s 10 million households in all! Even more bewildering is the fact that the number of households who don’t have bank accounts has been increasing since 2009. While there is no data on why households don’t have a bank account, some experts surmise that past mismanagement of financial accounts have caused some people to lose the right to have a bank account. Even so, how does one manage in a modern society without a bank account? (more…)
If you have a bank account, you may be hoping to save a little money for the future. However, in an effort to fatten their own bottom lines, banks have rolled out an enormous amount of fees that can drain your account little by little. With interest rates so low on most savings accounts, it pays to avoid any fees that might erode your savings even more. Here are a few types of fees that you may not have realized could be being charged automatically to your account. (more…)
The world is changing at a fast clip, and some banks are finding that they’re branches are becoming “old-fashioned.” The idea behind a branch bank is to integrate it into a community so that people will be more likely to visit it and do business with a big bank. However, many banks are finding that the services they once offered to attract business like free checking, teller transactions, and even interest on the account are no longer drawing the same crowd. (more…)
Banks in the United States might be all for bailouts when it comes to them, but when it comes to the poor they’re not so lenient. However, non-profit banks in France are set up differently and one in particular – the Credit Municipal de Paris – is forgiving the debt of its poorest customers. (more…)
It was the late 1970’s when the ATM cards first came out, and back then it was the idea that the bank would pay the account holder for using the card. The reasoning was that the user would save them from completing the transaction, which would require a human. (more…)
Anyone who has ever taken out a loan has had to deal with interest. Interest is a double edged sword that can be used either for your gain or loss. Credit cards usually have very high interest rates and over the course of time cost at least twice the amount of money that we initially borrowed. As more interest is piled on, high payments are required to keep us from paying interest on the interest! However, Interest can also be used to our advantage. Anytime we make use of a Money market or savings account, then we begin to accrue interest of our own. Like a credit card, the money invested in the money account will not only continue to generate interest on itself, but on the past interest.
The banking industry often refers to payday loan companies as unworthy. Banks will argue that payday loan companies are designed for low-income people and individuals without established credit.
The truth of the matter is that payday loan companies assist individuals with all different types of income and credit throughout the world. Banks lick their chops on long-term loans and somewhat despise the short-term solution available from payday loan companies. In reality, payday loan companies are taking business away from the traditional bank loans. Banks look at the bottom line and they do not concern themselves with the short-term needs of many borrowers. Many people feel that banks will encourage the borrower to get a bigger loan than necessary. (more…)