Debit card can become a high-tech piggy bank

[HonkeyDonk]

I don't get when people say how easy it is to save money instead of throwing the change in a cup.

Using a debit card has no bearing with physical money...everything is electronic. You don't use your debit card and then receive change back.

All this does is kinda force a person to do savings. However, the same kind of "forcable savings" could be done with ING as well. You can schedule a monthly transfer.

 

[HonkeyDonk]

Originally posted by: blurredvision

Originally posted by: dabuddha

Originally posted by: blurredvision

Originally posted by: AlucardX
not that big of a deal.. now that i got my emigrant account, with 4% interest.. i'll just transfer most of my checking in there and let it sit

This "plan" isn't for people like you, that's why it's not that big of a deal. For people like me, who have trouble saving money, it is a big deal. Let's say, on average, that I use my debit card 8 times a week. And let's say the average money saved back per transaction is $.50. That's $4 a week saved back, which translates into $208 a year. That's not counting the little bit of interest and what they'll match for the first 3 months.

:thumbsup:

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

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. Debit card's are not literally cash. When you charge something to your debit card, it takes out the exact amount.

What? Debit card's are literally cash. Re-read what I typed, I stated everything correctly. I'm not sure what your reply is in reference to.

What i *think* dabudda is trying to say is that debit cards have no relationship to physical cash as in you don't get any change versus if you give $2 for a $1.51 order, u get change back.

But maybe he was also refering to the "normally gets thrown into a cup" bit b/c I was a little confused w/ that too...you never receive change when you use debit....it's all electronic.

 

[Sketcher]

It's a good idea. Easy enough to squirrel the change regularly into a savings account with each purchase.

 

[Phoenix86]

Originally posted by: blurredvision

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

No, if you use a debit card, there isn't any change to throw into a jar. You pay the exact amount, just like you gave them exact change.

 

[blurredvision]

Originally posted by: Phoenix86

Originally posted by: blurredvision

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

No, if you use a debit card, there isn't any change to throw into a jar. You pay the exact amount, just like you gave them exact change.

No sh!t. I'm speaking in reference to cash. I have always looked at a debit card as cash, because that's basically what it is.

 

[HonkeyDonk]

Originally posted by: blurredvision

Originally posted by: Phoenix86

Originally posted by: blurredvision

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

No, if you use a debit card, there isn't any change to throw into a jar. You pay the exact amount, just like you gave them exact change.

No sh!t. I'm speaking in reference to cash. I have always looked at a debit card as cash, because that's basically what it is.

Then your reference is incorrect. Debit is cash in a sense, but phsyically, u dont' get change...so you can't really say "this is a great idea since i normally throw my change in a cup/tray" b/c if you are a debit card user, u never get change.

 

[Suspicious-Teach8788]

Why use a debit card when you can use a credit card.. 5% cashback 1% elsewhere... blah blah build credit. I just don't get you all with debit cards. Sure when I was a kid w/o a CC I used my debit card all the time, but now? Grow up!

 

[archcommus]

Originally posted by: DLeRium
Why use a debit card when you can use a credit card.. 5% cashback 1% elsewhere... blah blah build credit. I just don't get you all with debit cards. Sure when I was a kid w/o a CC I used my debit card all the time, but now? Grow up!

Using a debit card instead of a CC has nothing to do with maturity. :disgust:

 

[Phoenix86]

Originally posted by: blurredvision

Originally posted by: Phoenix86

Originally posted by: blurredvision

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

No, if you use a debit card, there isn't any change to throw into a jar. You pay the exact amount, just like you gave them exact change.

No sh!t. I'm speaking in reference to cash.

Right, OK, so why do you use "change that nonrmally gets thrown in a jar" as an example for debit card users?

Gotta use a debit card to take advantage of this, and if you do you don't have change... This *isn't* going to help people save "change" from transactions, it's CREATING change so they can save it. That means cash users have to change their method of payment, something people who have cash in hand aren't familiar with. They will likely get hit with insuffecient funds charges in the learning process. They see a balance, think it's all available, hey it says "available balance", and spend it. Forgetting about transactions that haven't hit the bank yet, maybe ones made during the weekend (generally show up on monday depending on the bank).

I have always looked at a debit card as cash, because that's basically what it is.

And that's what the bank wants you to think... You don't think they are in this to give away money or help people do you? Their objective is to get you to move $ from checking to savings (horrid way to save, no?) so they have more $ to lend, less reserves to meet, can collect on NSF fees. They *will* make $ on this program, otherwise it wouldn't be in place.

It's not so simple, and if people can manage to make $ off of this type of account, they are probably good enough money managers to just use normal savings/investment accounts.

 

[Suspicious-Teach8788]

Originally posted by: archcommus

Originally posted by: DLeRium
Why use a debit card when you can use a credit card.. 5% cashback 1% elsewhere... blah blah build credit. I just don't get you all with debit cards. Sure when I was a kid w/o a CC I used my debit card all the time, but now? Grow up!

Using a debit card instead of a CC has nothing to do with maturity. :disgust:

You would have no reason to use a debit card unless you don't have a credit card or somehow your debit card is all that's accepted (or you're using it as an ATM card because CCs aren't allowed). And if you have spending problems with your CC, then maybe you would be using your Debit card and once again that is a matter of maturity.

This program is just a forced savings program and thats why I use ING and move my money into BoA when rent needs to be paid. Otherwise, my debit card (check card) is SOLELY used for ATM transactions. Otherwise I would rather get cashback on my purchases by using a credit card.

Citi Platinum Dividend Select FTW!

 

[archcommus]

Originally posted by: DLeRium

Originally posted by: archcommus

Originally posted by: DLeRium
Why use a debit card when you can use a credit card.. 5% cashback 1% elsewhere... blah blah build credit. I just don't get you all with debit cards. Sure when I was a kid w/o a CC I used my debit card all the time, but now? Grow up!

Using a debit card instead of a CC has nothing to do with maturity. :disgust:

You would have no reason to use a debit card unless you don't have a credit card or somehow your debit card is all that's accepted (or you're using it as an ATM card because CCs aren't allowed). And if you have spending problems with your CC, then maybe you would be using your Debit card and once again that is a matter of maturity.

This program is just a forced savings program and thats why I use ING and move my money into BoA when rent needs to be paid. Otherwise, my debit card (check card) is SOLELY used for ATM transactions. Otherwise I would rather get cashback on my purchases by using a credit card.

Citi Platinum Dividend Select FTW!

If you carry a balance on your CC, you shouldn't be using it for daily purchases. And carrying a balance on your CC is an indicator of maturity?

Are you kidding me?

 

[blurredvision]

Originally posted by: Phoenix86

Originally posted by: blurredvision

Originally posted by: Phoenix86

Originally posted by: blurredvision

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

No, if you use a debit card, there isn't any change to throw into a jar. You pay the exact amount, just like you gave them exact change.

No sh!t. I'm speaking in reference to cash.

Right, OK, so why do you use "change that nonrmally gets thrown in a jar" as an example for debit card users?

Oh good god, you people don't give up. I fvcking said that this program allows you to automatically save back change that would normally be thrown into a cup holder or jar. I never once said it was actual change from using a debit card, because that's impossible. Quit trying to be so god damn literal, and use your brain when reading next time. The english language is full of non-literal meanings, so don't give me any BS. I said what I said, it makes sense, get over it.

And that's what the bank wants you to think... You don't think they are in this to give away money or help people do you? Their objective is to get you to move $ from checking to savings (horrid way to save, no?) so they have more $ to lend, less reserves to meet, can collect on NSF fees. They *will* make $ on this program, otherwise it wouldn't be in place.

No sh!t, once again. Why are you arguing this? A debit card is just the same as cash. Does it matter if the bank makes money from a plan like this? No. Why? Because you're not losing any money. It's called a service. If a bank can help me manage my money better than I ever could, and make money doing that exact thing without me having to pay a dime? It's a win-win.

 

[Concillian]

Originally posted by: mugs

The matching is nice, but I guarantee there will be people who abuse it - spending $.10 at a time on their debit card to get the $.90 match.

I am already envisioning people in the express lane at the supermarket asking for 10 separate transactions for their 10 items.

 

[Eli]

Sounds interesting.

I wonder if other banks will start doing similar things.

 

[mugs]

Originally posted by: archcommus
If you carry a balance on your CC, you shouldn't be using it for daily purchases. And carrying a balance on your CC is an indicator of maturity?

Are you kidding me?

I don't think he said he carries a balance.

 

[ponyo]

This is not a win-win. It's win for the bank and dumb idea for the consumer. Transferring money does not equal saving.

Bank makes more money from larger purchase charges from merchants. Merchants pay more to VISA and banks for higher sales $ amount. Also more potential NSF fees.

Bank is giving small rebate to entice customers to join but that's pocket change to money banks will make from this.

 

[Miramonti]

Originally posted by: Naustica
This is not a win-win. It's win for the bank and dumb idea for the consumer. Transferring money does not equal saving.

Bank makes more money from larger purchase charges from merchants. Merchants pay more to VISA and banks for higher sales $ amount. Also more potential NSF fees.

Bank is giving small rebate to entice customers to join but that's pocket change to money banks will make from this.

I think its a great idea for the consumer, nothing to lose.

And it takes money off the table for visa, which is hilarious, but do you know what banks make from merchants when the debit card is used? I'm guessing its not as much as Visa would make for a credit purchase but is still enough to drive the business model behind this promo.

 

[NiKeFiDO]

Originally posted by: archcommus
Yeah....ING FTW...end of story.

thats about right

 

[LikeLinus]

Originally posted by: DLeRium

Originally posted by: archcommus

Originally posted by: DLeRium
Why use a debit card when you can use a credit card.. 5% cashback 1% elsewhere... blah blah build credit. I just don't get you all with debit cards. Sure when I was a kid w/o a CC I used my debit card all the time, but now? Grow up!

Using a debit card instead of a CC has nothing to do with maturity. :disgust:

You would have no reason to use a debit card unless you don't have a credit card or somehow your debit card is all that's accepted (or you're using it as an ATM card because CCs aren't allowed). And if you have spending problems with your CC, then maybe you would be using your Debit card and once again that is a matter of maturity.

This program is just a forced savings program and thats why I use ING and move my money into BoA when rent needs to be paid. Otherwise, my debit card (check card) is SOLELY used for ATM transactions. Otherwise I would rather get cashback on my purchases by using a credit card.

Citi Platinum Dividend Select FTW!

whoa dude.. someone tell Dave Ramsey to step back..there's a new money man in town.

You're the coolest.

 

[HonkeyDonk]

Originally posted by: jjsole

Originally posted by: Naustica
This is not a win-win. It's win for the bank and dumb idea for the consumer. Transferring money does not equal saving.

Bank makes more money from larger purchase charges from merchants. Merchants pay more to VISA and banks for higher sales $ amount. Also more potential NSF fees.

Bank is giving small rebate to entice customers to join but that's pocket change to money banks will make from this.

I think its a great idea for the consumer, nothing to lose.

And it takes money off the table for visa, which is hilarious, but do you know what banks make from merchants when the debit card is used? I'm guessing its not as much as Visa would make for a credit purchase but is still enough to drive the business model behind this promo.

A better idea for the consumer would be to go to a real savings account like ING or emigrant if they are able to. If you can save just a few $ thru this new BoA thingy, then you can do just the same with ING. You can even set up an auto transfer.

I just don't get how people can say it's hard for them to save money. What does that mean? Are they so broke all the time that they never know when they will need all the $ they have, thus never putting it in savings? Well, if thats the case then they're still losing liquidable money using BoA's method. I think this just causes people to be a little more lazy with their money managment skills.

 

[dabuddha]

Originally posted by: blurredvision

Originally posted by: dabuddha

Originally posted by: blurredvision

Originally posted by: AlucardX
not that big of a deal.. now that i got my emigrant account, with 4% interest.. i'll just transfer most of my checking in there and let it sit

This "plan" isn't for people like you, that's why it's not that big of a deal. For people like me, who have trouble saving money, it is a big deal. Let's say, on average, that I use my debit card 8 times a week. And let's say the average money saved back per transaction is $.50. That's $4 a week saved back, which translates into $208 a year. That's not counting the little bit of interest and what they'll match for the first 3 months.

:thumbsup:

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

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. Debit card's are not literally cash. When you charge something to your debit card, it takes out the exact amount.

What? Debit card's are literally cash. Re-read what I typed, I stated everything correctly. I'm not sure what your reply is in reference to.

Reread what I typed

If you just used a plain debit card, your purchase of gum only cost you $1.19 total. So your account gets deducted by $1.19. With this new method, your account gets deducted by $2.00 and $.81 gets put into your savings account. Now how exactly did you save money? If you used the old method, you would have taken out only $1.19. In fact, this is probably going to cause a lot of NSF problems for people because they're not going to be able to keep track of their account statuses since what's being charged to the card is actually more than what the item costs that they're purchasing.

 

[smack Down]

Originally posted by: dabuddha

Originally posted by: blurredvision

Originally posted by: dabuddha

Originally posted by: blurredvision

Originally posted by: AlucardX
not that big of a deal.. now that i got my emigrant account, with 4% interest.. i'll just transfer most of my checking in there and let it sit

This "plan" isn't for people like you, that's why it's not that big of a deal. For people like me, who have trouble saving money, it is a big deal. Let's say, on average, that I use my debit card 8 times a week. And let's say the average money saved back per transaction is $.50. That's $4 a week saved back, which translates into $208 a year. That's not counting the little bit of interest and what they'll match for the first 3 months.

:thumbsup:

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

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. Debit card's are not literally cash. When you charge something to your debit card, it takes out the exact amount.

What? Debit card's are literally cash. Re-read what I typed, I stated everything correctly. I'm not sure what your reply is in reference to.

Reread what I typed

If you just used a plain debit card, your purchase of gum only cost you $1.19 total. So your account gets deducted by $1.19. With this new method, your account gets deducted by $2.00 and $.81 gets put into your savings account. Now how exactly did you save money? If you used the old method, you would have taken out only $1.19. In fact, this is probably going to cause a lot of NSF problems for people because they're not going to be able to keep track of their account statuses since what's being charged to the card is actually more than what the item costs that they're purchasing.

Because most people balance there debit cards to the penny.

 

[dabuddha]

Originally posted by: smack Down

Originally posted by: dabuddha

Originally posted by: blurredvision

Originally posted by: dabuddha

Originally posted by: blurredvision

Originally posted by: AlucardX
not that big of a deal.. now that i got my emigrant account, with 4% interest.. i'll just transfer most of my checking in there and let it sit

This "plan" isn't for people like you, that's why it's not that big of a deal. For people like me, who have trouble saving money, it is a big deal. Let's say, on average, that I use my debit card 8 times a week. And let's say the average money saved back per transaction is $.50. That's $4 a week saved back, which translates into $208 a year. That's not counting the little bit of interest and what they'll match for the first 3 months.

:thumbsup:

EDIT: Forgot to point out that the $208 you saved is $208 that you otherwise wouldn't have had. I think some of you here just don't realize how hard it is for some to save money. However, automatically saving back change that normally gets thrown in a cup holder or in a jar? That's easy.

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. Debit card's are not literally cash. When you charge something to your debit card, it takes out the exact amount.

What? Debit card's are literally cash. Re-read what I typed, I stated everything correctly. I'm not sure what your reply is in reference to.

Reread what I typed

If you just used a plain debit card, your purchase of gum only cost you $1.19 total. So your account gets deducted by $1.19. With this new method, your account gets deducted by $2.00 and $.81 gets put into your savings account. Now how exactly did you save money? If you used the old method, you would have taken out only $1.19. In fact, this is probably going to cause a lot of NSF problems for people because they're not going to be able to keep track of their account statuses since what's being charged to the card is actually more than what the item costs that they're purchasing.

Because most people balance there debit cards to the penny.

No, most people balance their checking accounts to the penny. At least responsible ones. All this scheme is is a way for the bank to make more money due to the NSF fees that are going to arise.

 

[Gibson486]

Originally posted by: IonYou

Originally posted by: mugs

Originally posted by: Gibson486
$.11 would be deposited, but $1.50 would be withdrawn for using your pin number.....hmmmmm

Does BofA charge $1.50 for using it as a debit card? My wife used to use hers for everything, I don't think she would have done that if she was being charged $1.50 each time.

No they don't charge fees for using your debit card unless you use it in an out of network ATM.

Yes, if you use your ATM card as a debit card, you are using out of the ATM network. Basically, anytime you make a withdrawl that is not on a ATM machine supported, you get charged some fee unless they give a certain amount a free transactions a month.

 

[dullard]

Originally posted by: dabuddha
No, most people balance their checking accounts to the penny. At least responsible ones. All this scheme is is a way for the bank to make more money due to the NSF fees that are going to arise.

NSF fees are a big plus for the bank. More money in savings accounts is another plus (they get to keep more loans by federal law and thus earn more interest money). And then there is the 3rd portion that is unclear. Banks charge a percent of every debit card purchase to the store owner. Will the percentage be charged on $1.19 or $2.00? Clearly the banks who make the rules are better off charging the percentage on the $2.00. But maybe they will take the noble route and not use this to screw store owners.