Banks Rethinking Debit Card Fees

A few posts back when I mentioned Bank of America's plans to introduce a $5 debit card usage fee, a huge consumer backlash came about.  People across the country were talking about closing their Bank of America checking accounts and it seemed as if there was a mass exodus from national banks to more local credit unions.  J.P. Morgan Chase has been testing a similar $3 debit card fee in a few states but plans on abandoning the idea.  Wells Fargo had been implementing an almost identical $3 fee that it has also decided to cancel.  TD Bank conducted a customer survey and found that about 75% use debit cards for convenience and that almost all of them would discontinue their account if a fee was imposed.  U.S. Bank has also come out saying that they do not plan on adding any fees.

Annuities

Most people have heard of life insurance.  However, not everyone knows about the other side of the coin, annuities.  While life insurance protects against an early death, annuities protect against living too long.  So why am I blogging about annuities on a young adult centered site?  It's because annuities can be a very important consideration for your retirement nest egg in the future and generally too few people pay attention to them.

Optionshouse: The Cheapest Way to Invest

Time Value of Money

Ever hear the phrase that time is money?  I thought I'd make a post for the general public who might not know much about such a topic while we learn everything about it in business school.  In this sense, there is an actual price associated with the value of money over time.  If given the choice between $1 today and $1 in a year, nobody would ever pick the latter. Intuitively, getting a $1 today and keeping it until a year from now will be the same as the latter choice, except that you have the option to spend it on something within a year if you find an opportunity.  From a financial perspective, you could also put the $1 into a bank account today and accumulate interest for a year, receiving more than $1 in a year.

New Debit Card Fees

Anyone with a Bank of America account should already be aware that the company is planning to institute a $5 monthly debit card fee starting in 2012.  They will roll it out slowly, selecting a few states at a time but no specific information is available yet.  This fee does not include use of ATMs but whether you use your card at the cashier once or 100 times, you will be charged $5 for that month.  This is essentially a $60 fee assuming you use your debit card at least once a month.  Wells Fargo and Chase are already testing debit card fees in certain locations and this may prompt them to also institute a global debit card fee for their own cards too.  However, I believe there will always be some banks offering free use of their debit cards and the promotion of this feature will become more prominent in the years to come.

The Passing of an American Visionary

This night saw the unfortunate passing of Steve Jobs, one of the greatest visionaries and businessmen in the world.  We all knew it was coming but I'm sure it is a shock that it was so soon.  I really appreciated his Stanford 2005 Commencement Address and thought I'd share it for anyone interested.  The speech is really moving and it's hard to hear that he is now gone.

Credit Card Overview

I thought I'd go through a quick list of my credit cards, the pros and cons I have found with each one, and what their purpose is for my spending habits.