I have to agree with you about the practices being sketchy. However, as adults we have a responsibility to research the people that we do business with. I am by no means a high-roller. In fact, my income is quite sad. Part of it is my own fault for being mentally lazy and the other part is just the lack of steady income when you're a freelancer.
Before I signed up with Wachovia (which is a very good bank btw) I did my homework. I knew people who banked there around my income level who were happy customers.
If, however, you find that you dislike bank practices in general perhaps, you can try a credit union. Credit unions are designed with the community in mind and are a wonderful alternative to banks. Again, it takes a little researching. But it's worth the time and effort. After all, it is your money.
I've been in this situation before, and while I'm thankful that I'm no longer with the bank I was using, I'm extremely grateful for my current bank, Wachovia, and their extremely pro-consumer policies - for example, they process deposits before debits, they have a one day grace period for you to make deposits before overdrafts are calculated, and now they have a $5.00 overdraft protection limit (basically, if you overdraw by less than five dollars, no matter what, you won't get an overdraft fee).
but if they dont process transaction on friday to sunday, then the savings account transfer won't happen in time either.
The only way to avoid these overdraft fees is join a bank which doesn't have these. I bet everybody in their lives, even the ones which are frugal, will get hit once with an overdraft fee. You don't have too!
A $30 fee is 3% interest a YEAR on $1000! Yet is it so easy for banks to take $30 in one day on even 2 cents (see poster above). The only way to force banks to stop using overdrafts, or overdraft fees, is leaving them as a customer. Then they'll understand!
We know they have their fees set up this way. We know they process the transactions in an order that is sleazy. Thus, if we still overdraft, which you did, you maybe should have known better. I would have done a transfer from savings to cover the expenses on Friday so all funds were in there, then put a portion of my check into my saving, returning the money I transferred. Yes, what they do is sleazy and possibly immoral, but we don't have to be victims. I'm glad you got your money back, though.
Hi, Sarah!I'm really enjoy reading your blog. I think it's the first time I've time to do it. I have been fired from my job. I really liked it...no,I loved it. I hated my boss, but I think this is an intrinsic event in a work-relation.I usually went to work, especially on Monday,nervous and scared. JUST STRESS!But in any case, I loved my job, all things I was making, designing or just thinking. I think that the way of working without any gap,it's just an illusion, an utopia. We're persons working with another persons, your boss, can't be your friend, like when you were a child your mother could be only your mother... Now I see it so simple. Work is just the way to earn money for spending it in your real life, the life that you choose, where the friends you like are waiting for you.
Though I loathe being in the position of defending a bank, I'll mention that there is a difference between depositing a check, and that money being posted to the account and thus generating available funds -- which may be a 3-day settlement period. The timeframe between deposit and funds beging available is called float. There is a possibility that the check may not clear and then the bank will have given out money that it can now not recoup.
This practice is long-standing; what has changed though is leniency toward float -- in the past, managers might overlook a close call if the customer has a history of keeping enough money in an account; at least, it's been explained that way to me when I cut things a bit too close. Managers also could make decisions to waive fees and often did; again that doesn't happen anymore.
Just in case anyone is counting on the 3-days, note that banks reserve the right to put a hold on money so the settlement period may be longer -- if they see a suspicious check, for example; this happened to me once b/c the teller didn't recognize a investment check but I promptly brought that to the manager's attention.
I completely understand your post. I don't understand why banks like to keep kicking you when you are down. I hate our banking system today. I may take a note from your book and switch to a different bank! I love your blog!!
Had something almost the same happen to me a few years ago with Bank of America. Used my debit card all weekend and then had a large check overdraw my account on Monday by two cents. Two cents! Got hit with a few hundred in overdraft fees for all of the weekend debit card transactions.
Thing is, the bank doesn't wait until Monday figure out if you are have any money in your account. Go to an ATM on Sunday and try do take out fifty when you only have forty and you are going to get denied every time.
Immoral. Unethical. And soon illegal as well.
Our financial system is corrupt from top to bottom. Time for a complete overhaul.
Yes, I've heard on NPR (US national public radio) that the credit card companies are really good about fraud protection for their card holders - the credit card takes the hit rather you do for fraudulent purchases. They do this not out of the goodness of their corporate hearts, but because they are required to do so by law. Debit cards, not so much.
James, you don't have to buy the trashed homes so I don't really see that as a risk unless you are buying them without looking.There are plenty of REOs in move in conditon, but these have more offers.
Yes, I just want to say that bank owned homes may constitute a higher risk than other types of homes. The reason for this is that the previous owners, knowing they'll be foreclosed often have a disincentive to take care of the home. So, when you buy the home, the likelyhood is good that it will have been trashed.
I got one for you all. My situation is much similar to all of yours, I worked for a small electrical contractor as a PM and estimator. They laid me off, then claimed they fired me... Here is where it gets interesting. They claimed that I was fired for felony theft, and insubordination. I went to the local police dept. and had them pull my record, which is spotless! Also went to their local police dept. and had them pull claims orginating from the company, and there was nothing there as well. I took this to the adjucator, who said it would be overturned, no problem, there is nothing they have on you. Go home, and don't worry about it... Then I got a letter 2 weeks later saying that the felony theft has been dropped but I was inelegiable for the reason of insubordination (this was in August mind you). I then went ahead and filed my second appeal, when we went infront of the judge (on the phone) he spotted inconsistancies in the employers part. The judge actually started yelling at the previous employer. Case closed (so I thought) now 4 months later I still do not have a ruling on the judges part?! I called the judge, and he told me that he is back logged due to a computer problem... He has yet to decide on my case, but hopes to get to it the first weeek in December... I have been living for the past 4 months on scraps, and donations from my family. I had to apply for assistance in form of food stamps, and gas/electric low income assistance, all while the money (538.00 per week) add's up for the past 4 months (you do the math). This is disgusting, and a complete outrage. First off there should be a law that prohibits this from happening. Second there should be an instant reversal and decision by the judge. It has been over a month now!~ Not a damn thing from the judge. I had to call him, and he called me back 2 days before Thanksgiving telling me to have a good Thanksgiving and he would have to get to it once he gets back from vacation!!!, yeah, and how in the heck do I do that? He is holding the nearly $8,000.00 that can go to paying my mortgage, cars, food, electricity, water, gass and insurance! Come on, I have 3 kids, and a wife who is out of work also, she is not getting any unemployment, nor am I. GOing on 2 month wait for a decision.... One that is fairly obvious, as the judge actually yelled at the employer, and cought him in 3 lies.
Great article! I bought a bank-owned home last year--as you said the escrow closed in 21 days and I had to scramble. One thing the Bank emphasized was the the property was AS-IS. The toilet leaked, the garage door spring was uncoiled and wouldn't open, and many other small things I knew I could easily fix or have fixed. To counter the As-Is condition, I asked the bank to pay for a one year Home Warranty and they did! It covered some things that broke after the move in. So don't be afraid to ask for that, even if the property is sold As-Is.
I thought this letter had an interesting twist on both how to combine forces to help give more useful and wanted gifts and how to give what amounts cash without causing problems for those who can afford less as well as still getting the satisfaction of knowing you helped give someone an actual thing.
This sounds like a great way to make money -- I have been trying to give away my user insights for free -- that is, when I have been forced to call customer service b/c of a lousy site navigation design and in vain tried to explain the concept of usability (or heuristics) testing -- but am glad to see that this could be a source of income for some and a way to help companies to understand navigational nightmares.
Article is right - generally ignore all the calculators out there and what the banks tell you you can afford. The rule of thumb that I use is : is your monthly payment 25% or less of your TAKE-HOME pay (not your gross pay)? Given all the other expenses that people have, like cars, kids, groceries, etc, any more than 25% is just way too much. I don't care what the banks say, I will never pay more than that.
Great post! I didn't even realize this type of thing existed!!! This is perfect for folks looking for a little extra cash. A dollar a minute ain't half bad! =)
I have just found out that i can sell hair lol don't know where to go saw your ad, please let me know what you are looking for and where you are located,i live in conyers,ga, i had about 12inches to cut off soon!!it has been color treated, but i hardly ever blow dry or use curling iron mostly air dry and set to long to set anymore,never used drugs,it is auburn in color,please get back to me..thank you Maria
I have to agree with you about the practices being sketchy. However, as adults we have a responsibility to research the people that we do business with. I am by no means a high-roller. In fact, my income is quite sad. Part of it is my own fault for being mentally lazy and the other part is just the lack of steady income when you're a freelancer.
Before I signed up with Wachovia (which is a very good bank btw) I did my homework. I knew people who banked there around my income level who were happy customers.
If, however, you find that you dislike bank practices in general perhaps, you can try a credit union. Credit unions are designed with the community in mind and are a wonderful alternative to banks. Again, it takes a little researching. But it's worth the time and effort. After all, it is your money.
I've been in this situation before, and while I'm thankful that I'm no longer with the bank I was using, I'm extremely grateful for my current bank, Wachovia, and their extremely pro-consumer policies - for example, they process deposits before debits, they have a one day grace period for you to make deposits before overdrafts are calculated, and now they have a $5.00 overdraft protection limit (basically, if you overdraw by less than five dollars, no matter what, you won't get an overdraft fee).
I gotta say, I'm a very happy camper with them.
but if they dont process transaction on friday to sunday, then the savings account transfer won't happen in time either.
The only way to avoid these overdraft fees is join a bank which doesn't have these. I bet everybody in their lives, even the ones which are frugal, will get hit once with an overdraft fee. You don't have too!
A $30 fee is 3% interest a YEAR on $1000! Yet is it so easy for banks to take $30 in one day on even 2 cents (see poster above). The only way to force banks to stop using overdrafts, or overdraft fees, is leaving them as a customer. Then they'll understand!
We know they have their fees set up this way. We know they process the transactions in an order that is sleazy. Thus, if we still overdraft, which you did, you maybe should have known better. I would have done a transfer from savings to cover the expenses on Friday so all funds were in there, then put a portion of my check into my saving, returning the money I transferred. Yes, what they do is sleazy and possibly immoral, but we don't have to be victims. I'm glad you got your money back, though.
Hi, Sarah!I'm really enjoy reading your blog. I think it's the first time I've time to do it. I have been fired from my job. I really liked it...no,I loved it. I hated my boss, but I think this is an intrinsic event in a work-relation.I usually went to work, especially on Monday,nervous and scared. JUST STRESS!But in any case, I loved my job, all things I was making, designing or just thinking. I think that the way of working without any gap,it's just an illusion, an utopia. We're persons working with another persons, your boss, can't be your friend, like when you were a child your mother could be only your mother... Now I see it so simple. Work is just the way to earn money for spending it in your real life, the life that you choose, where the friends you like are waiting for you.
Glad you enyojed the piece and the idea! It's really the easiest and most useful way I've found to make some extra money. Plus it's kind of fun too!
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Though I loathe being in the position of defending a bank, I'll mention that there is a difference between depositing a check, and that money being posted to the account and thus generating available funds -- which may be a 3-day settlement period. The timeframe between deposit and funds beging available is called float. There is a possibility that the check may not clear and then the bank will have given out money that it can now not recoup.
This practice is long-standing; what has changed though is leniency toward float -- in the past, managers might overlook a close call if the customer has a history of keeping enough money in an account; at least, it's been explained that way to me when I cut things a bit too close. Managers also could make decisions to waive fees and often did; again that doesn't happen anymore.
Just in case anyone is counting on the 3-days, note that banks reserve the right to put a hold on money so the settlement period may be longer -- if they see a suspicious check, for example; this happened to me once b/c the teller didn't recognize a investment check but I promptly brought that to the manager's attention.
I completely understand your post. I don't understand why banks like to keep kicking you when you are down. I hate our banking system today. I may take a note from your book and switch to a different bank! I love your blog!!
Had something almost the same happen to me a few years ago with Bank of America. Used my debit card all weekend and then had a large check overdraw my account on Monday by two cents. Two cents! Got hit with a few hundred in overdraft fees for all of the weekend debit card transactions.
Thing is, the bank doesn't wait until Monday figure out if you are have any money in your account. Go to an ATM on Sunday and try do take out fifty when you only have forty and you are going to get denied every time.
Immoral. Unethical. And soon illegal as well.
Our financial system is corrupt from top to bottom. Time for a complete overhaul.
Thanks! I am researching eating frugally in Oahu and I stumbled on your blog! Hi! I love saving people money! Thanks for all you do!
Yes, I've heard on NPR (US national public radio) that the credit card companies are really good about fraud protection for their card holders - the credit card takes the hit rather you do for fraudulent purchases. They do this not out of the goodness of their corporate hearts, but because they are required to do so by law. Debit cards, not so much.
James, you don't have to buy the trashed homes so I don't really see that as a risk unless you are buying them without looking.There are plenty of REOs in move in conditon, but these have more offers.
Yes, I just want to say that bank owned homes may constitute a higher risk than other types of homes. The reason for this is that the previous owners, knowing they'll be foreclosed often have a disincentive to take care of the home. So, when you buy the home, the likelyhood is good that it will have been trashed.
Thanks,
James
Some people should have read this before they attempted the purchase, they would have made out a lot better.
John DeFlumeri jr
I think this is great advice, planning ahead and taking advantage of CDs and Savings Accounts is how to go!
Good tip. The home warranty is a small cost to them and could save you thousands of dollars in repairs. Congratulations on your purchase!
I got one for you all. My situation is much similar to all of yours, I worked for a small electrical contractor as a PM and estimator. They laid me off, then claimed they fired me... Here is where it gets interesting. They claimed that I was fired for felony theft, and insubordination. I went to the local police dept. and had them pull my record, which is spotless! Also went to their local police dept. and had them pull claims orginating from the company, and there was nothing there as well. I took this to the adjucator, who said it would be overturned, no problem, there is nothing they have on you. Go home, and don't worry about it... Then I got a letter 2 weeks later saying that the felony theft has been dropped but I was inelegiable for the reason of insubordination (this was in August mind you). I then went ahead and filed my second appeal, when we went infront of the judge (on the phone) he spotted inconsistancies in the employers part. The judge actually started yelling at the previous employer. Case closed (so I thought) now 4 months later I still do not have a ruling on the judges part?! I called the judge, and he told me that he is back logged due to a computer problem... He has yet to decide on my case, but hopes to get to it the first weeek in December... I have been living for the past 4 months on scraps, and donations from my family. I had to apply for assistance in form of food stamps, and gas/electric low income assistance, all while the money (538.00 per week) add's up for the past 4 months (you do the math). This is disgusting, and a complete outrage. First off there should be a law that prohibits this from happening. Second there should be an instant reversal and decision by the judge. It has been over a month now!~ Not a damn thing from the judge. I had to call him, and he called me back 2 days before Thanksgiving telling me to have a good Thanksgiving and he would have to get to it once he gets back from vacation!!!, yeah, and how in the heck do I do that? He is holding the nearly $8,000.00 that can go to paying my mortgage, cars, food, electricity, water, gass and insurance! Come on, I have 3 kids, and a wife who is out of work also, she is not getting any unemployment, nor am I. GOing on 2 month wait for a decision.... One that is fairly obvious, as the judge actually yelled at the employer, and cought him in 3 lies.
Great article! I bought a bank-owned home last year--as you said the escrow closed in 21 days and I had to scramble. One thing the Bank emphasized was the the property was AS-IS. The toilet leaked, the garage door spring was uncoiled and wouldn't open, and many other small things I knew I could easily fix or have fixed. To counter the As-Is condition, I asked the bank to pay for a one year Home Warranty and they did! It covered some things that broke after the move in. So don't be afraid to ask for that, even if the property is sold As-Is.
Just wanted to say "good for you" to Jesse above. You got a great deal.
Or so their blog says: http://www.npr.org/blogs/money/2009/12/letter_a_new_holiday_tradition.html
I thought this letter had an interesting twist on both how to combine forces to help give more useful and wanted gifts and how to give what amounts cash without causing problems for those who can afford less as well as still getting the satisfaction of knowing you helped give someone an actual thing.
This sounds like a great way to make money -- I have been trying to give away my user insights for free -- that is, when I have been forced to call customer service b/c of a lousy site navigation design and in vain tried to explain the concept of usability (or heuristics) testing -- but am glad to see that this could be a source of income for some and a way to help companies to understand navigational nightmares.
Article is right - generally ignore all the calculators out there and what the banks tell you you can afford. The rule of thumb that I use is : is your monthly payment 25% or less of your TAKE-HOME pay (not your gross pay)? Given all the other expenses that people have, like cars, kids, groceries, etc, any more than 25% is just way too much. I don't care what the banks say, I will never pay more than that.
Great post! I didn't even realize this type of thing existed!!! This is perfect for folks looking for a little extra cash. A dollar a minute ain't half bad! =)
please contact me looking to sell about 12in color auburn,color treated, no drugs no blow drying or curling iron
I have just found out that i can sell hair lol don't know where to go saw your ad, please let me know what you are looking for and where you are located,i live in conyers,ga, i had about 12inches to cut off soon!!it has been color treated, but i hardly ever blow dry or use curling iron mostly air dry and set to long to set anymore,never used drugs,it is auburn in color,please get back to me..thank you Maria