Debit card can become a high-tech piggy bank

[dullard]

Originally posted by: dabuddha
How is that $4 a week you saved? If you didn't have this program, you wouldn't have taken the $4 out to begin with if you're using your debit card.

You can't use logic. People like this don't think or use logic. So arguing it is pointless. Instead, can you try and understand their logic? Try this example:

Case 1)
[*]$200 is in the checking account.
[*]The irresponsible person sees he has money and blows $195 on food / booze / lottery tickets / $15 CDs that have only one good song that he will be too sick of from its overplaying on the radio and the CD will almost never be used / clothing which is in style now but will be worn twice before winter then be out of style next year and never worn again / etc.
[*]$5 is left.
[*]The person can't spend since the checking account is near zero and acts responsibly until the next week's paycheck comes and the process repeats.

Case 2)
[*]$200 is in the checking account.
[*]$195 is forcibly moved into the savings account.
[*]This irresponsible person is too lazy to go to the bank and transfer it back.
[*]$5 is left in the checking account.
[*]The person can't spend since the checking account is near zero and acts responsibly until the next week's paycheck comes and the process repeats.
[*]Next week's paycheck comes. $200 in checking and $195 in savings.
See how Case 2 is a "free" $195? No, it isn't really free. But this way the stupid people don't blow their money on useless crap that they don't need or want.

 

[Phoenix86]

Originally posted by: blurredvisionIt's a win-win.

Try re-reading what I posted about cash users going to debit cards trying to save $ and NSF fees (which can run as much as $30/transaction). Also, if this will cause people living paycheck to paycheck (the people who this is aimed at, people who DON'T save) will see less $ in their normal account, generating more opportunity for NSF fees.

This isn't win-win. This may help some people, but others will find the love that is 5 transactions at $5-10 generating 5xNSF fees, and at $30, that's $150 in fees. But hey, you have a paltry $10 in savings, and they will match it!

Can you see how this will hurt people with bad money management, IE, people who don't save?

edit: A bad money manager will get stung by this. A good money manager will make a little off of this in matching, but could make more elsewhere.