Comments on: Checking accounts vs prepaid cards, Suze Orman edition http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Sechel http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-35047 Mon, 16 Jan 2012 18:36:26 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-35047 Have to give the media a big fat “f” on this. She’s being invited on all the shows to promote her card and making it all seem like she’s a non-profit and not self-promoter.

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By: randyhilst http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-35014 Sun, 15 Jan 2012 19:02:27 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-35014 You can rent a car using a debit card associated with a checking account. You cannot rent a car using a pre-paid card. This, by itself, is an argument for keeping the checking account, is it not?

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By: mkeenly http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34912 Wed, 11 Jan 2012 15:33:03 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34912 Felix,

I’m surprised that you like this idea *at all*. Suze has gone from being a reasonably reputable consumer and personal finance advocate to a complete huckster and a shill for the debit card providers. Trying to piggyback on the 99% and Occupy movements makes it even worse. I’m thankful that this idea is so stupid and transparently so that it will die on its own in short time.

Mike

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By: Strych09 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34899 Tue, 10 Jan 2012 19:31:06 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34899 I agree with mrmcd that the ‘electric orange’ account from ING meets the description outlined by Felix for the no-monthly fee checking account without physical checks. Suze Orman is just shameless with her huckstering; while there are LOTS of worse prepaid debit cards out there, even young people should realize there are better ways to go than even her branded card.

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By: realist50 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34897 Tue, 10 Jan 2012 18:29:06 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34897 I have to think that even young people need at least some checks, and I say this as someone who uses a combination of online bill pay and automatic ACH to take care of all regular monthly bills such as credit card, utilities, cell phone, mortgage, and cable. That said, there are some situations where it seems like the best or easiest solution is to mail in a check along with a required form. Some government taxes and fees come to mind – property tax and renewal of vehicle registration. It’s possible (at least here in Austin) to pay those by credit card, but the state charges a fee for doing so. Avoiding that 1% or 2%, especially on property taxes, more than covers paying $10 or $15 for some checks every few years. Seems like checks are also the way to go for paying service providers like a plumber, etc. Even as smartphone options to swipe credit and debit become more prevalent, I’m betting that a lot of these providers will still want to avoid interchange. To echo Ken_G’s point, I think that a lot of people also pay rent by check – I used to when I was renter – both since property managers don’t want to pay interchange and since the renter wants to drop off a check on a specific date.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34896 Tue, 10 Jan 2012 17:53:05 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34896 “Since everyone seems to have theory about how to save USPS these days, having Congress authorize them to partner with banks to provide deposits other simple physical banking needs would probably solve a lot of these problems.”

The salary structure and work rules at the USPS is too far out of whack for this to be feasible. Would cost them at least double your typical bank to process deposits, and banks are already finding that is unprofitable for smaller accounts.

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By: ComradeAnon http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34894 Tue, 10 Jan 2012 17:23:57 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34894 My college kids have a credit union checking account that’s linked to their savings account. They use the debit cards associated with it for everything. They barely know what cash is and really don’t want to carry any. Right now they don’t need checks since we can pay rent online. If they overdraft, it’s just a small fee for a service charge and money is automatically transferred from the savings account. (I know. We’re working on it. But this is vastly better to the $35 charges the bank got.) There is no fee associated with this set up outside of any overdraft situation. I realize that this requires a savings account, but it’s just $25 to open. Look around at credit union options. It’s usually like doing business with yourself. I know that an option like this is not available to everyone, but it’s vastly batter than the original bank-based option we tried.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34893 Tue, 10 Jan 2012 16:45:29 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34893 My son’s landlord does not accept debit or credit cards (and I suspect many property managers don’t, as they don’t want to pay the bank fees), so he has to get a cashier’s check every month to pay his rent. When I pay taxes, the state doesn’t want checks, but I send them one anyway and pay the 1% penalty, because I dont’ want to pay 3% or so for using a credit or debit card, and I don’t trust ACH. In theory, ACH is fine, but you are at the mercy of the company you are giving access to your bank account to (I don’t trust any of them or their software).

Checks will become obsolete when financial institutions don’t charge you to use your own money.

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By: mrmcd http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/comment-page-1/#comment-34891 Tue, 10 Jan 2012 16:02:53 +0000 http://blogs.reuters.com/felix-salmon/2012/01/10/checking-accounts-vs-prepaid-cards-suze-orman-edition/#comment-34891 “Do young people need checks? No — and there’s probably a case to be made for a new kind of financial product, a no-monthly-fee bank account without checks”

This is basically what online checking accounts offered by banks like ING Direct and USAA are. No minimum balance, direct deposit and ACH transfers, a debit and ATM card, and even a small amount of interest on some accounts. Most of them even do offer checks, although usually you either have to have them printed and mailed by the bank, or pay a small fee to get a packet of checks.

About the only thing they don’t do better than a physical bank is depositing checks, which either have to be mailed in, deposited in a physical bank and transfered via ACH, or on some banks deposited via smartphone. That, plus the inability to make cash deposits and requiring reliable internet access are probably the main reasons the “unbanked” (or working poor) couldn’t just go with an online only bank. Since everyone seems to have theory about how to save USPS these days, having Congress authorize them to partner with banks to provide deposits other simple physical banking needs would probably solve a lot of these problems. Not that the Republicans would ever allow it in a million years, but it’s not that far fetched since they already do money orders and passports.

Overall though, I’ve been with ING Direct for 5 years now, and have had nothing but a positive experience with them. My only complaint is that their smartphone apps aren’t very good compared to some competitors, but as a bank they’re excellent.

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