Skip to main content

DISCLOSURES - Cookies

DISCLOSURES


This site uses cookies, mostly through Google's Blogger policy.


Some lawyers stay up at night trying to ruin free society and create new rules. Therefore, here are the disclosures I must have that you probably won't read.

CHECKING | The "Free" account, their hook into your wallet.

Howard Lake "Save Our Cheques campaign"

Different Types of Checking Accounts


I know I can’t be the only person who thought this… but prior to my very first day working for a bank I had no idea there was more than one type of checking account.

I figured a checking was a checking and a savings was a savings. I never thought of them as “products” that could have different costs and benefits.

Let's take a look at what a "Checking Account" really is.

The primary product of a bank, is a checking account.

A Checking Account is the product most people start with, and it's the hook to get you inside... so they can work on getting other products into your hands.

This is a bit of a misnomer, as few people under the age of 40 still write checks (or Cheques as they are called in other countries). Most people now days use BillPay or DebitCard to take money out of the "Checking".



In fact, for good reasons, check writing is becoming a thing of the past. 

As it started a checking account was created as a place to store your money so that you could safely go about not having to carry loads of cash. Then you could write a “check” which was a piece paper promising that cash to another person or company.         

~History~


Fact Monster[1] Provides an interesting brief history here is an excerpt:
            
“According to most history texts, it probably wasn’t until the early 1500s, in Holland, that the check first got widespread usage. Amsterdam in the sixteenth century was a major international shipping and trading center. People who had accumulated cash began depositing it with Dutch “cashiers,” for a fee, as a safer alternative to keeping the money at home. Eventually the cashiers agreed to pay their depositors’ debts out of the money in each account, based on the depositor’s written order or “note” to do so.”

~Recent Times~

            
People used checks as the primary non-cash payment method up until the 1970′s when ATM’s became widespread.

The use of credit cards and debit cards didn’t really take on as the preferred payment method until after the 1990′s really got underway.

Many people from older generations are still without computers or cards, but banks around the world debate even accepting checks in the future. The burden of processing a check and recovering from potential fraud are higher than ANY other type of payment method.

Just think how easy it is to order a new card VS getting a new account number and re setting up direct deposits etc.

~Interesting Facts~


The following was copied from ehow.com[2]:
“1971 - First true bank ATMs: Docutel introduces its Total Teller, the first true fully functioning bank ATM. 
1978 - The first IBM-compatible Diebold machine is installed at a bank in Indianapolis.
The Expansion of Card Usage
Although the usage of the debit card at the POS has not surpassed the credit card as the preferred card medium of exchange, it has made tremendous strides in its commonality. A paper written by Robert M. Hunt of the Federal Reserve of Philadelphia notes that from 1980 to 2000, consumer purchases via debit card rose from zero percent to 12 percent, and purchases made via check fell from 86 percent to 50 percent.

Future Implications

If the recent move by British banks is any indication, the use of debit cards will skyrocket over in the next 10 years. Banks in Great Britain have agreed to stop accepting checks by 2018 (we shall see). They note factors such as the high relative cost of processing checks, coupled with the decline in merchants that accept checks as payment.

~Now Days~

            
It’s interesting that they noted that checks will not be accepted in Great Britain by 2018. Although there is no such plan in the United States (yet), it does underscore the growing trend away from checks and toward debit cards as the preferred method of direct payment.

These days the check is not the preferred payment method of most institutions.

Due to a new law called Check-21[3] many companies are now clearing checks electronically anyway to avoid the hassles.

Have you ever tried to write a check at a store and the cashier ran it through then handed it back to you? Thanks to check-21 getting your “Canceled Checks” or even “Check Images” is becoming more and more unlikely. Those who need good records for tax reporting are now best off using the bank-provided online bill payment services (BillPay) for the safest and best record keeping.

~My Account~

            
There are many checking account types offered by banks all going by different names. But here are the basics and categories:
            
All checking accounts at their most base level are for unlimited use of your money. You put money in and then use it as you need it, whether that is to make a purchase or pay a bill.

The difference between accounts comes from what restrictions or privileges you get.


  • Some accounts offer free check orders, free bill payment services, even a small interest rate. 
  • Other benefits may include a discount on services such as transfers to other banks or countries, waived stop payment fees, waived Non-Bank ATM fees, and more. 
  • Sometimes the bank may give you an interest rate discount on a loan or a bonus on a CD. 
  • Some banks honor their higher value clients with discounts on brokerage trades. 
  • You could find you get a better insurance rate by having a long history and relationship with a specific bank. 
  • You may find a loan easier to get by having a history with the bank you are applying through.

There can be packages and accounts available for Students, Military Members, and Employees of Member Companies, The Elderly or retirees may have accounts with privilege. Those with lots of money almost always have special accounts available.

Once they have you firmly established into this "relationship" they can sell you all of these other "Products and Services". If you don't buy anything else, they won't be sad to see you leave. Buying other things is the only reason they still offer the Checking Account for a low cost, it actually costs the bank a lot of money to offer it.

How does it cost them money?

They have to process your transactions, protect you from fraud, have online services, call centers, tellers, etc, etc, etc. If you don't also borrow money from the bank, you are a cost to them (not a benefit). 

~Value~

            
Why do people with more money get more? 

The fact is, despite all the talk about fees and overdrafts in recent times, banks make over 80% of their profit from less than 20% of their clients. The wealthier the client the more money they bring in profit for the bank.

Consider: Wealthier Clients take out larger loans, and larger business loans.

Rightly, the bank provides special things for people who bring this important business. Hopefully that helps take out some of the wonder about checking accounts.

Side Note: This is also why when anyone with less than 1 million in the bank threatens to "take all my business elsewhere", the bank employee nods, smiles, and goes back to what they were doing without so much as a yawn when the person leaves, or hangs up.


The Insider



[1]     http://www.factmonster.com/ipka/A0001522.html
[2]     http://www.ehow.com/about_6192272_history-atm-card.html
[3]     http://en.wikipedia.org/wiki/Check_21_Act


The Insider is a BIG fan of Dave Ramsey:

  • Go read/listen/watch Dave Ramsey and he'll teach you how to do it right!
  • Listen to The Dave Ramsey Show (HERE)

Comments

Reading List








DISCLOSURES

DISCLOSURES

Some lawyers stay up at night trying to ruin free society and create new rules. Therefore, here are the disclosures I must have that you probably won't read.

Sign Up

Consider Supporting This Site: Become a Patron! Sign Up so you don't miss a post:

Special Delivery

* indicates required

View previous campaigns.

Powered by MailChimp

Darrell's Reading List


Here are some books I've been reading lately:
  • Hacker: The Outlaw Chronicles (here) by Ted Dekker (Author). The story of a young Hacker girl, who went on a wild adventure into the supernatural realm beyond trying to save her mom, but saved her self too in the process.
  • Saint: A Paradise Novel (here) by Ted Dekker (Author). He's an assassin, or is he? He finds a secret to his past that unlocks supernatural abilities, at a cost.
  • For a full list of all my book suggestions, see my Amazon Store.

Popular posts from this blog

No Hiding... My Story

Why am I writing my story? So... here's the thing. The Pure Desire, Seven Pillars workbook asks me to write an addiction story. When I was __ this happened. Then this happened. Timeline style.

The workbook and videos also break down the limbic system, and how desires, fears, and auto-responses were mostly created early, before 6 years old, give or take.

I've been thinking about my history and timeline for years, wondering why I am the way I am. So this sounds like promising homework. I started in on paper, but the deep level I want to travel will take more space. I plan to outline every relevant (or possibly relevant) moment.

Also, I'm inspired to start again because of a KPBS special "Meet the Patels", in which Ravi Patel (as shown through the lens of his sister's (Geeta Patel's - Film Maker) camera. It's a long story, worth seeing. It showed the struggles of American dating vs the arranged or partially-arranged type marriage systems their culture us…

Flavia Antoinette Wolfe: Here's what happened...

Flavia Antoinette Wolfe died this morning (06/25/2018) at approximately 2:45 am PST. For update see
http://www.darrellwolfe.com/2018/06/flavia-antoinette-wolfe-and-baby-wolfe.html?m=1

The following is meant to answer some basic questions that everyone's asking me. I'd rather send a link then type or talk it out over and over. I'll add more memories and things later as I recall or rediscover. It's a little cathartic for me, to be able to get it out of my head anyway.

The background leading up to this morning:


On May 24, 2018, I got a text with a picture of a positive pregnancy test followed by "So... Boy, girl, twins?"We made appointments, got excited. Flavia was overweight but in generally good health otherwise, so-say-the-tests. However, the pregnancy hit her hard and fast. She said within a month of that test she was feeling like she did when she was six-months pregnant.06/06/2018: She took the boys to get Fro-Yo, it was nice outside, they decided to walk a…

The W Story Structure - 4 Sequence Story Structure

Out of everything I've ever read on story structure for fiction writing, the W-Story Structure makes the most sense to me. If you'd rather view these as Acts (3-Act or 4-Act) you can overlay that on this W and it still works.



Glen C. Strathy writes (in much more detail here) in his article, The W-Plot vs. The Dramatica Model of Story Structure. There are four sequences for most stories. Each of the four legs of the W is comprised of a sequence of events that lead the story along to it's natural conclusion.

Sequence 1: setting up the problem (creating tension)Sequence 2: recovering from the problem (new ideas, positive momentum)Sequence 3: deepening of the problemSequence 4: the resolution of the problem (new light or understanding)

Sequence 1: setting up the problem (creating tension)
The Inciting Event (the event that is at the heart of the reason this story happened) may have occurred before your story begins, and often does. In King Arthur: Legend of the Sword (2017), th…

Flavia Antoinette Wolfe (and Baby Wolfe) - Memorial Information Page

Flavia Antoinette Wolfe (and Baby Wolfe, nickname "Blueberry") passed away on 06/25/2018. gofundme.com/flaviawolfememorial 



Links and Contact:

Honestly, Facebook and Facebook Messenger are the best places to reach Darrell.
Darrell's Facebook Page(s) Self & JointFacebook Messenger: @darrellandflaviawolfeme@darrellwolfe.comMobile: 208-907-1617Flavia's Facebook PageHer Art Page: Creatively Unique ArtistExplanation of What HappenedGoFundMe Link: gofundme.com/flaviawolfememorial Memorial Photo AlbumMemorial Slide Show or on YouTube HereGood Grief Resources:Memorial Message of Hope (written)Jesse Duplantis: CLOSE ENCOUNTERS OF THE GOD KINDYouTube: Good Grief Playlist
What Happened?

For detail on what happened, click here.

If the link doesn't work, paste this into your browser:

http://www.darrellwolfe.com/2018/06/flavia-antoinette-wolfe-heres-what.html

Shared Photo Album:

I created a Google Photos album, ! Flavia Wolfe (link here), so that I could share photos of her. …

Short Story: The Treasure Room

For where your treasure is, there will your heart be also. Matthew 6:21
It's true, where you spend your money is an indication of what you value. This is why Tithe (money) is the number one indicator of whether you Trust God (heart issue).

What if we turned this verse around for a moment? What if we imagined that the treasure is your heart?

For where your heart is, there will be your deepest treasures.We then come to realize that the human heart is the real treasure. It's not our money or belongings that matter in life, but the hearts we touch along the way.

As I pondered that this morning, I imagined the following story. I hope you enjoy and take something away for yourself today.

*******

The sun poured into his bedroom window casting shadows around his room. The birds chirping in the tree just outside provided a bittersweet contrast to his otherwise solemn mood.

The house did not get many visitors, because Bob was a sheltered man. He lived far away, in the mountains. When he des…

Archive

Show more

Other sites I follow: