Just about one month after they announcing a $5 surcharge to use your debit card for purchases, Bank of America is now reportedly looking into new ways for more account holders to avoid the fee and may consider reversing the fee altogether. Showing that voting with your feet and moving your money elsewhere really does work, several banks including Wells Fargo and Chase have now completely dropped their plans to institute these fees altogether after witnessing the backlash and public outcry against debit card fees. Score one for the little guys. […]
I’m starting a new series here called Finance 101. When the mood stikes me I’ll cover one basic consumer finance topic that I think will help us as we both get out of debt. Let’s begin this series with the most basic thing…why banks need you to open accounts and deposit money in the banks.
Deposit accounts are your typical savings or checking accounts where you deposit money into an account at a bank. They’re sometimes called demand accounts meaning that they have to give you your money when you ask for it. When you deposit money at a bank, the bank now physically has your cash and gives you some note that says they’re holding that money for you. It might be your deposit receipt, your statement or a passbook. So, the bank now counts your money as their asset but also lists that same money as a liability that they owe to you. What’s just happened is that you have effectively given the bank a loan and now they owe you the money whenever you come back and say that you want it or when you spend it by using debit cards or checks. […]