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Kind of fucked up that the article doesn't mention the fees associated with these cards until like 3/4 of the way into the article. These cards charge 5 bucks

Kind of fucked up that the article doesn't mention the fees associated with these cards until like 3/4 of the way into the article. These cards charge 5 bucks a month, plus like 3 dollars to deposit cash, 3 dollars to withdraw cash, in addition to the 5-10 dollars up front for the card itself. Because of this, a person using this type of card can easily spend $100+ a year on fees. Not exactly a great way to save money, and hardly better than overdrafts. If at all possible, people in this sort of situation would be much better served by joining a credit union. While there are some drawbacks in terms of hours and atm availability, many CU's do not charge overdrafts and also have some form of atm reimbursement. This, along with the ability to deposit checks by snapping a pic with your phone make them a viable, and preferable alternative. Sadly, they are not as prominent, nor well advertised as the sort of cards peddled by Wal-mart, et. al.

egwynn 9y ago
The article sort of addresses the consumer motivation for choosing prepaid cards over traditional banks: During Servon’s research working as a teller at a check casher and payday lender, consumers told her that the fee structures of nonbank alternatives were more transparent and predictable than those at conventional banks—crucial to anyone living on a budget. Prepaid cards offer this predictability, and over time their reputation for transparency has improved.
bpodgursky 9y ago
Just read the article. It's $1 for the card and free cash withdrawal at a Wal-Mart banking center. It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. More importantly, they aren't pulling the overdraft scams that banks are. The example right here is that the customer in question pulled $100 in overdraft fees over a $4 purchase, with a traditional bank card.
- asafira 9y ago
  What do you mean by "It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank."? Aren't there lots of banks that charge nothing even if you only have <$1000?
  - bpodgursky 9y ago
    There aren't many anymore. Banks mostly eliminated or heavily restricted free checking accounts when overdraft fees got capped. You may be able to find a couple credit unions that do this, but you still have minimum account balances and other hurdles that make it difficult to open an account if you have bad credit and little money (not to mention time or financial savvy).
    - nxc18 9y ago
      My credit union requires I have a savings account with $5.00. The overdraft fee is $30. There are no recurring costs outside of that. Both checking and savings accounts earn interest - much less for the checking account - rather than costing me money. I don't know about the credit check part; I set up with my parents years ago so that may have exempted me as I didn't have any credit history at the time.
    - ErrantX 9y ago
      > There aren't many any more... ...in the US. In the UK its the opposite; the majority of checking accounts are free, some premium accounts charge a fee but generally come with rewards. Overdrafts; there are fees for unarranged overdrafts, but its reasonably trivial to arrange a limit and this is generally fee-less (naturally you pay interest; mine is 1.2% calculated daily) ATMs are largely free regardless of who your bank is.
      - briandear 9y ago
        In France they sure aren't free. Banks even charge a monthly fee for a debit card in addition to a monthly account maintenance fee. Of course banking in the France is stuck in the 1980s with many banking transactions requiring an actual visit to your specific bank branch and a consultation with your personal banker.
        ErrantX 9y ago
        Interesting; my perspective (working in the finance industry) has been that European banks are ahead of the curve with technology and, importantly, technology for customers. It sounds like maybe not?
- fefesafaea 9y ago
  I read it. Maybe you should go to a store and actually get one of these cards, then let me know how it works out. Seriously though, these cards, like many "financial products" come with a variety of price points and fee structures. If you re-read my comment, you'll see that I didn't claim my figures were definitive, but they are definitely in the ballpark.
  - bpodgursky 9y ago
    Um, no, you completely made up the numbers, making no attempt to source from the article which laid them out clearly. It's not the same "ballpark". - It's $1 for the card, not "$5-$10" - It's free cash withdrawal, not $3 - It's free deposits from direct deposit or government benefits, not $3 You are not approaching this remotely honestly.
    - fefesafaea 9y ago
      https://www.walmartmoneycard.com/account/legal-info-page?productname=mc-cbr&doc=feeplan https://www.walmartmoneycard.com/account/legal-info-page?pro... As I said, there are a variety of cards on offer, from a variety of sources, but they all seem to fall within the same range cost-wise, even if the fees are structured differently. It's as if we are arguing about cars, and you want to debate whether the pinto in question had power-windows or not, while ignoring the fact that it will explode in a routine accident.
      - bpodgursky 9y ago
        Dude, you really need to think carefully about whether you are approaching this topic honestly, or if you are hunting for reasons to reinforce your belief that this card is a scam. The precise things you claimed about this card are _not true_. Those are facts. If you want to debate, use _facts_. Nobody is denying that WalMart _could_, if they wanted to, offer a savings card which is a scam. But also consider their motives going into this, compared to the average bank: - Wal-Mart's goal is to get people to spend money at Wal Mart. This card makes it easy to spend money at Wal-Mart. - Banks exist entirely from interest on saved money, and on fees. Since these customers have very little saved money (the whole point of this article), the money made is entirely from fees, unless you have another reason to get people to use the card. Wal-Mart does -- it is totally reasonable for them to run this program at-cost to attract customers. You cannot say the same for any bank. If you want to disagree with the merits of people spending money at Wal-Mart, that's a different topic. But the evidence points to this card being a good deal for an underserved part of the population.
- rdl 9y ago
  They could probably win on goodwill if they waived that fee freely for anyone who walks into a Walmart every month, or makes a single transaction, or is part of some group considered vulnerable or worth subsidizing (veterans, benefits recipients, etc.)
- morgante 9y ago
  > It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. Sure you are. I have many accounts with less than that. Don't spread FUD. Overdraft fees are easy to avoid if you just tell them to decline overdrafts.
  - TheSpiceIsLife 9y ago
    Your comment would have been better if you had linked to examples rather than accusing the parent of spreading FUD. Maybe you're a student or have multiple products (different types of accounts, credit cards, home loans, term deposits) with your bank? I can't get a $0 / month account for everyday banking from my bank because I have a special rate home loan. They have a savings account that's $0 / month but you can only transfer from / to it via a regular $4 / month account.
    - morgante 9y ago
      Here are my various no-fee checking accounts: * http://content.schwab.com/web/retail/public/get-started/checking/ http://content.schwab.com/web/retail/public/get-started/chec... - amazing checking account, reimburses all ATM fees * https://www.capitalone.com/bank/360checking-guide/ https://www.capitalone.com/bank/360checking-guide/ * https://www.aspiration.com/summit/ https://www.aspiration.com/summit/ I do have a few other ones but they're based on relationship banking. All of the above have no fee and no minimum.
      - kevan 9y ago
        Step 2 in this analysis: Would you be able to get any of those accounts with a low credit score? I'm pretty sure when I opened my Schwab checking account they ran a credit check.
        morgante 9y ago
        I've had most of those accounts since I had virtually no credit (and a low/nonexistent credit score). That being said, if you have a negative Chexsystems report they'll be hard to get. I'm not trying to say the unbanked don't have barriers. I just didn't like the assertion that free checking is impossible, since that's what leads to even people on HN paying needless maintenance fees.
- tastythrowaway2 9y ago
  I literally have 3 accounts that are better than that, also with no ATM fees.
- batiudrami 9y ago
  >It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. What? It costs money to lend your money to the bank in the US?
  - maxerickson 9y ago
    At lots of places, yes. They usually wave the fees for modest account minimums or accounts that regularly deposit paychecks. There are enough banks/credit unions that don't charge fees that it is more of a way of asking people not to open an account than it is a problem with access to banking.
  - thinkling 9y ago
    Not just in the US. I encountered fees in several countries in Europe (definitely NL).
    - briandear 9y ago
      France for sure. Banking is ridiculous here in terms of fees.
    - falsedan 9y ago
      Australian ATM fees are ridiculous, $0.50 for in-network and $2 for out (at CBA). On top of 0% interest too.
- nxc18 9y ago
  Skip the bank. Credit Unions are where its at: nation-wide shared branches, fee-free checking, sane overdraft policies, no minimum balances, reasonable interest payments, and in my experience, not a single instance of them blatantly trying to screw customers. I just checked and my CU has a $30 overdraft fee, which can be disabled if you're willing to let things bounce.
  - kevin_thibedeau 9y ago
    Try opening a CU account without credit.
    - ryanhuff 9y ago
      No credit, or bad credit?
      - Pseudosudowoodo 9y ago
        I can confirm at least for my union, they had no issue with my very bad credit. They were more concerned with recent debts and rent, things like that. Background: For the record, it was due to defaulting on a student loan. It's taken care of now, but back then I couldn't afford the 10% interest rate.
    - memonkey 9y ago
      I didn't have credit when I opened my account with a CU. I don't even think they ran a credit check.
    - dragonwriter 9y ago
      I had little (and mostly bad) credit when I opened my first CU account. Wasn't a problem, at all. It might, OTOH, be hard with the same kind of bad account history that will stop you from being able to open a regular bank account, but that's different from regular no credit or bad credit.
    - adrr 9y ago
      Most small and medium size banks don't pull your credit report. Its Chex Systems to see if you have any deposit accounts in bad standing. Some also pull fraud scores from experian or equifax as well to see if you information has been used in identity theft recently.
- johndotsun 9y ago
  >It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. That might be true of the big national banks with a branch in every town small and big alike but it's not true of the smaller local banks and credit unions. My checking account at my credit union is free as long as I maintain a balance of at least 5 dollars. It has branches in the area with decent hours, it has an excellent online banking site, it has excellent customer service. When I walk in to do some business I'm not bombarded with sales pressure to waste my money in exotic types of accounts that the credit union offers that do more for the bottom line of the credit union than for me. If I travel across the country I can access my money through a national network of similar credit unions without paying any fees. To my understanding this is extremely common among credit unions in other areas. Oh and to reply to one of your comments below, my credit was extremely poor when I opened my account. I received nothing but highly professional customer service regardless.
  - sgs1370 9y ago
    Not all credit unions are equal, so just watch out. I had been actively using my efcu account then switched to usaa bank for the bulk of activity, and - my mistake - wasn't watching the efcu cu account closely enough and they started charging $5/month inactivity fees.
- r00fus 9y ago
  Technically true, many banks charge a monthly fee, but most/all credit unions do not. What's the benefit of personal banking through an actual bank over a credit union? I see none currently except it's a bit more difficult to send/receive money internationally through mine (I'm fairly sure it isn't all CU's that have this issue).
- FullMtlAlcoholc 9y ago
  > It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. A simple google search for free checking account gave me 20+ such banks in the first result.
protomyth 9y ago
Is there data on the number of CU's that don't charge fees because I haven't found one that doesn't charge overdraft and have seen a monthly low aggregate balance fee?
- fefesafaea 9y ago
  I couldn't say, but would be interested to find out. As far as CU's are concerned, I'll admit that I'm speaking anecdotally. Obviously each CU is different, and I can't really speak to the specific terms that each one offers, but overall they seem to be more attractive than the terms offered by the large chain banks and the payday lender style banks that originated the style of debit cards discussed in the article.
- zanny 9y ago
  My credit union has a $5 minimum savings balance. That is it. No monthly fees, but it does have an overdraft fee. It is going to be exceedingly hard to find any bank that doesn't have overdraft fees - that is where a lot of their revenue comes from.
kirykl 9y ago
Bluebird, a Walmart/Amex prepaid product has $0 fees for nearly everything (including even free foreign currency transactions). And offers free checking for the 'unbanked'. https://www.bluebird.com/#fee-chart https://www.bluebird.com/#fee-chart
orf 9y ago
As someone from the UK I always find it astounding that Americans are used to paying money to.. withdraw or deposit their money. How did this become the norm? I find it a bit disgusting actually. The only cash machines that charge over here that I've seen are rented ones at packed events (clubs, concerts etc).
- chrisseaton 9y ago
  > I find it a bit disgusting actually But withdrawing and depositing money is a service that costs the banks money to do doesn't it? I'm can see why you don't like but I can't see it as morally 'disgusting'. Would you look after someone else's meagre current account for them, and give it back on demand, for free? I wouldn't. I don't really know who covers that cost in the UK. It's certainly not interest they earn lending out our savings is it? Especially this type of customer since they have no savings because the point of the card is to encourage them to do so, and since interest rates are so low. Who is paying to cover the costs of a basic bank account of someone who doesn't save? I've no idea.
  - nightcracker 9y ago
    Those are the costs associated with running a bank. It's paid for by giving them access to our capital, that they can use to invest. Have we forgotten what a bank is for? It's to conveniently and safely store money. Part of that convenience is to withdraw and store money at many locations. If a bank didn't offer that they wouldn't get my money.
    - chrisseaton 9y ago
      > It's paid for by giving them access to our capital, that they can use to invest. What capital? The people referred to in this article don't have any savings. Many working class people have no savings at all, and only a few thousand in their current accounts.
      - watwut 9y ago
        Which does not make this offer reasonable, it is still ripoff. They are better off keeping money in box at home. Criticising this offer is as valid as criticising any other expensive and bad service.
reading-at-work 9y ago
And yet, thousands of people who started using the cards have increased their savings more than they would have otherwise. Yes a credit union is preferable, but the point is that this demographic of people wasn't using them (or regular banks) and that these cards have encouraged better behavior through a new psychological angle. If the net result is positive, I wouldn't get hung up on the fees.
Spoom 9y ago
If at all possible, people in this sort of situation would be much better served by joining a credit union. I was under the impression that most people using these cards were using them because: a) They distrusted banks because of a prior history of being screwed by them, or b) They were unbankable because of a ChexSystems report preventing them from being able to open a traditional bank account. Is this not the case?
- nradov 9y ago
  Regarding point "a", credit unions are specifically not banks. They have a separate legal structure.
  - Spoom 9y ago
    I very much doubt that the people affected by point "a" above would consider them different.

egwynn 9y ago

The article sort of addresses the consumer motivation for choosing prepaid cards over traditional banks: During Servon’s research working as a teller at a check casher and payday lender, consumers told her that the fee structures of nonbank alternatives were more transparent and predictable than those at conventional banks—crucial to anyone living on a budget. Prepaid cards offer this predictability, and over time their reputation for transparency has improved.

bpodgursky 9y ago

Just read the article. It's $1 for the card and free cash withdrawal at a Wal-Mart banking center. It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. More importantly, they aren't pulling the overdraft scams that banks are. The example right here is that the customer in question pulled $100 in overdraft fees over a $4 purchase, with a traditional bank card.

asafira 9y ago
What do you mean by "It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank."? Aren't there lots of banks that charge nothing even if you only have <$1000?
- bpodgursky 9y ago
  There aren't many anymore. Banks mostly eliminated or heavily restricted free checking accounts when overdraft fees got capped. You may be able to find a couple credit unions that do this, but you still have minimum account balances and other hurdles that make it difficult to open an account if you have bad credit and little money (not to mention time or financial savvy).
  - nxc18 9y ago
    My credit union requires I have a savings account with $5.00. The overdraft fee is $30. There are no recurring costs outside of that. Both checking and savings accounts earn interest - much less for the checking account - rather than costing me money. I don't know about the credit check part; I set up with my parents years ago so that may have exempted me as I didn't have any credit history at the time.
  - ErrantX 9y ago
    > There aren't many any more... ...in the US. In the UK its the opposite; the majority of checking accounts are free, some premium accounts charge a fee but generally come with rewards. Overdrafts; there are fees for unarranged overdrafts, but its reasonably trivial to arrange a limit and this is generally fee-less (naturally you pay interest; mine is 1.2% calculated daily) ATMs are largely free regardless of who your bank is.
    - briandear 9y ago
      In France they sure aren't free. Banks even charge a monthly fee for a debit card in addition to a monthly account maintenance fee. Of course banking in the France is stuck in the 1980s with many banking transactions requiring an actual visit to your specific bank branch and a consultation with your personal banker.
      - ErrantX 9y ago
        Interesting; my perspective (working in the finance industry) has been that European banks are ahead of the curve with technology and, importantly, technology for customers. It sounds like maybe not?
fefesafaea 9y ago
I read it. Maybe you should go to a store and actually get one of these cards, then let me know how it works out. Seriously though, these cards, like many "financial products" come with a variety of price points and fee structures. If you re-read my comment, you'll see that I didn't claim my figures were definitive, but they are definitely in the ballpark.
- bpodgursky 9y ago
  Um, no, you completely made up the numbers, making no attempt to source from the article which laid them out clearly. It's not the same "ballpark". - It's $1 for the card, not "$5-$10" - It's free cash withdrawal, not $3 - It's free deposits from direct deposit or government benefits, not $3 You are not approaching this remotely honestly.
  - fefesafaea 9y ago
    https://www.walmartmoneycard.com/account/legal-info-page?productname=mc-cbr&doc=feeplan https://www.walmartmoneycard.com/account/legal-info-page?pro... As I said, there are a variety of cards on offer, from a variety of sources, but they all seem to fall within the same range cost-wise, even if the fees are structured differently. It's as if we are arguing about cars, and you want to debate whether the pinto in question had power-windows or not, while ignoring the fact that it will explode in a routine accident.
    - bpodgursky 9y ago
      Dude, you really need to think carefully about whether you are approaching this topic honestly, or if you are hunting for reasons to reinforce your belief that this card is a scam. The precise things you claimed about this card are _not true_. Those are facts. If you want to debate, use _facts_. Nobody is denying that WalMart _could_, if they wanted to, offer a savings card which is a scam. But also consider their motives going into this, compared to the average bank: - Wal-Mart's goal is to get people to spend money at Wal Mart. This card makes it easy to spend money at Wal-Mart. - Banks exist entirely from interest on saved money, and on fees. Since these customers have very little saved money (the whole point of this article), the money made is entirely from fees, unless you have another reason to get people to use the card. Wal-Mart does -- it is totally reasonable for them to run this program at-cost to attract customers. You cannot say the same for any bank. If you want to disagree with the merits of people spending money at Wal-Mart, that's a different topic. But the evidence points to this card being a good deal for an underserved part of the population.
rdl 9y ago
They could probably win on goodwill if they waived that fee freely for anyone who walks into a Walmart every month, or makes a single transaction, or is part of some group considered vulnerable or worth subsidizing (veterans, benefits recipients, etc.)
morgante 9y ago
> It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. Sure you are. I have many accounts with less than that. Don't spread FUD. Overdraft fees are easy to avoid if you just tell them to decline overdrafts.
- TheSpiceIsLife 9y ago
  Your comment would have been better if you had linked to examples rather than accusing the parent of spreading FUD. Maybe you're a student or have multiple products (different types of accounts, credit cards, home loans, term deposits) with your bank? I can't get a $0 / month account for everyday banking from my bank because I have a special rate home loan. They have a savings account that's $0 / month but you can only transfer from / to it via a regular $4 / month account.
  - morgante 9y ago
    Here are my various no-fee checking accounts: * http://content.schwab.com/web/retail/public/get-started/checking/ http://content.schwab.com/web/retail/public/get-started/chec... - amazing checking account, reimburses all ATM fees * https://www.capitalone.com/bank/360checking-guide/ https://www.capitalone.com/bank/360checking-guide/ * https://www.aspiration.com/summit/ https://www.aspiration.com/summit/ I do have a few other ones but they're based on relationship banking. All of the above have no fee and no minimum.
    - kevan 9y ago
      Step 2 in this analysis: Would you be able to get any of those accounts with a low credit score? I'm pretty sure when I opened my Schwab checking account they ran a credit check.
      - morgante 9y ago
        I've had most of those accounts since I had virtually no credit (and a low/nonexistent credit score). That being said, if you have a negative Chexsystems report they'll be hard to get. I'm not trying to say the unbanked don't have barriers. I just didn't like the assertion that free checking is impossible, since that's what leads to even people on HN paying needless maintenance fees.
tastythrowaway2 9y ago
I literally have 3 accounts that are better than that, also with no ATM fees.
batiudrami 9y ago
>It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. What? It costs money to lend your money to the bank in the US?
- maxerickson 9y ago
  At lots of places, yes. They usually wave the fees for modest account minimums or accounts that regularly deposit paychecks. There are enough banks/credit unions that don't charge fees that it is more of a way of asking people not to open an account than it is a problem with access to banking.
- thinkling 9y ago
  Not just in the US. I encountered fees in several countries in Europe (definitely NL).
  - briandear 9y ago
    France for sure. Banking is ridiculous here in terms of fees.
  - falsedan 9y ago
    Australian ATM fees are ridiculous, $0.50 for in-network and $2 for out (at CBA). On top of 0% interest too.
nxc18 9y ago
Skip the bank. Credit Unions are where its at: nation-wide shared branches, fee-free checking, sane overdraft policies, no minimum balances, reasonable interest payments, and in my experience, not a single instance of them blatantly trying to screw customers. I just checked and my CU has a $30 overdraft fee, which can be disabled if you're willing to let things bounce.
- kevin_thibedeau 9y ago
  Try opening a CU account without credit.
  - ryanhuff 9y ago
    No credit, or bad credit?
    - Pseudosudowoodo 9y ago
      I can confirm at least for my union, they had no issue with my very bad credit. They were more concerned with recent debts and rent, things like that. Background: For the record, it was due to defaulting on a student loan. It's taken care of now, but back then I couldn't afford the 10% interest rate.
  - memonkey 9y ago
    I didn't have credit when I opened my account with a CU. I don't even think they ran a credit check.
  - dragonwriter 9y ago
    I had little (and mostly bad) credit when I opened my first CU account. Wasn't a problem, at all. It might, OTOH, be hard with the same kind of bad account history that will stop you from being able to open a regular bank account, but that's different from regular no credit or bad credit.
  - adrr 9y ago
    Most small and medium size banks don't pull your credit report. Its Chex Systems to see if you have any deposit accounts in bad standing. Some also pull fraud scores from experian or equifax as well to see if you information has been used in identity theft recently.
johndotsun 9y ago
>It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. That might be true of the big national banks with a branch in every town small and big alike but it's not true of the smaller local banks and credit unions. My checking account at my credit union is free as long as I maintain a balance of at least 5 dollars. It has branches in the area with decent hours, it has an excellent online banking site, it has excellent customer service. When I walk in to do some business I'm not bombarded with sales pressure to waste my money in exotic types of accounts that the credit union offers that do more for the bottom line of the credit union than for me. If I travel across the country I can access my money through a national network of similar credit unions without paying any fees. To my understanding this is extremely common among credit unions in other areas. Oh and to reply to one of your comments below, my credit was extremely poor when I opened my account. I received nothing but highly professional customer service regardless.
- sgs1370 9y ago
  Not all credit unions are equal, so just watch out. I had been actively using my efcu account then switched to usaa bank for the bulk of activity, and - my mistake - wasn't watching the efcu cu account closely enough and they started charging $5/month inactivity fees.
r00fus 9y ago
Technically true, many banks charge a monthly fee, but most/all credit unions do not. What's the benefit of personal banking through an actual bank over a credit union? I see none currently except it's a bit more difficult to send/receive money internationally through mine (I'm fairly sure it isn't all CU's that have this issue).
FullMtlAlcoholc 9y ago
> It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank. A simple google search for free checking account gave me 20+ such banks in the first result.

protomyth 9y ago

Is there data on the number of CU's that don't charge fees because I haven't found one that doesn't charge overdraft and have seen a monthly low aggregate balance fee?

fefesafaea 9y ago
I couldn't say, but would be interested to find out. As far as CU's are concerned, I'll admit that I'm speaking anecdotally. Obviously each CU is different, and I can't really speak to the specific terms that each one offers, but overall they seem to be more attractive than the terms offered by the large chain banks and the payday lender style banks that originated the style of debit cards discussed in the article.
zanny 9y ago
My credit union has a $5 minimum savings balance. That is it. No monthly fees, but it does have an overdraft fee. It is going to be exceedingly hard to find any bank that doesn't have overdraft fees - that is where a lot of their revenue comes from.

kirykl 9y ago

Bluebird, a Walmart/Amex prepaid product has $0 fees for nearly everything (including even free foreign currency transactions). And offers free checking for the 'unbanked'. https://www.bluebird.com/#fee-chart https://www.bluebird.com/#fee-chart

orf 9y ago

As someone from the UK I always find it astounding that Americans are used to paying money to.. withdraw or deposit their money. How did this become the norm? I find it a bit disgusting actually. The only cash machines that charge over here that I've seen are rented ones at packed events (clubs, concerts etc).

chrisseaton 9y ago
> I find it a bit disgusting actually But withdrawing and depositing money is a service that costs the banks money to do doesn't it? I'm can see why you don't like but I can't see it as morally 'disgusting'. Would you look after someone else's meagre current account for them, and give it back on demand, for free? I wouldn't. I don't really know who covers that cost in the UK. It's certainly not interest they earn lending out our savings is it? Especially this type of customer since they have no savings because the point of the card is to encourage them to do so, and since interest rates are so low. Who is paying to cover the costs of a basic bank account of someone who doesn't save? I've no idea.
- nightcracker 9y ago
  Those are the costs associated with running a bank. It's paid for by giving them access to our capital, that they can use to invest. Have we forgotten what a bank is for? It's to conveniently and safely store money. Part of that convenience is to withdraw and store money at many locations. If a bank didn't offer that they wouldn't get my money.
  - chrisseaton 9y ago
    > It's paid for by giving them access to our capital, that they can use to invest. What capital? The people referred to in this article don't have any savings. Many working class people have no savings at all, and only a few thousand in their current accounts.
    - watwut 9y ago
      Which does not make this offer reasonable, it is still ripoff. They are better off keeping money in box at home. Criticising this offer is as valid as criticising any other expensive and bad service.

reading-at-work 9y ago

And yet, thousands of people who started using the cards have increased their savings more than they would have otherwise. Yes a credit union is preferable, but the point is that this demographic of people wasn't using them (or regular banks) and that these cards have encouraged better behavior through a new psychological angle. If the net result is positive, I wouldn't get hung up on the fees.

Spoom 9y ago

If at all possible, people in this sort of situation would be much better served by joining a credit union. I was under the impression that most people using these cards were using them because: a) They distrusted banks because of a prior history of being screwed by them, or b) They were unbankable because of a ChexSystems report preventing them from being able to open a traditional bank account. Is this not the case?

nradov 9y ago
Regarding point "a", credit unions are specifically not banks. They have a separate legal structure.
- Spoom 9y ago
  I very much doubt that the people affected by point "a" above would consider them different.