Friday Financial Foul Ups: Being Down on High Interest Rate Checking

This week’s Friday Financial Foul Up will feature a guest post from Kyle at Suburban Dollar.  Kyle writes about his own financial experiences and openly states that he doesn’t know everything.  However, that makes his writing and his tone refreshing and I really enjoy reading his content.  If you aren’t already, look for Kyle on twitter (@suburbandollar).   Lastly, Friday Financial Foul Ups has been nominated for a Plutus Award. Please go here and give it a vote for Best Multi-Part Series. Enjoy!

If you would like to add your own financial foul up to this series, please contact me here.
_________

When I started Suburban Dollar a little over a year ago it was at the end of what many people would call Online Savings Account boom. Interest rates were in the mid 3’s down from their epic highs of around 5% APY. Online saving wasn’t new but it was gaining in popularity and people were flocking to it in droves, driven by banks like ING Direct and Emigrant Direct. The populatity wasn’t limited to savings accounts either, banks had started offering interest bearing online checking accounts. I wanted in on the action.

The Situation

At some point in the last year my wife and I decided enough was enough and we needed to part ways. We both wanted to be able to spend, a little, money without having to feel like the other was judging their spending. We agreed to a set allowance amount and that we would have separate spending accounts for ourselves and joint account for bills, household stuff, and that kind of junk. My wife decided to use a bank account that was setup for us when we got our second mortgage, I was left to my own decisions.

Where I Fouled up

Making your money make money is a key piece of the personal finance puzzle. Stagnant cash is worthless, if you aren’t using it then you need to use it. That was the only thing on my mind when it came time to open up a checking account. I scoured the interwebs looking for the best rates I could find on an online checking account. It turned out one of my online savings banks had a good rate for their checking product and I jumped at it. I made sure there were ATM’s in my area, they were a little out of the way but I was sure I wouldn’t mind. Everything was set and I was ready to roll, they took direct deposits and after finagling with my payroll department I got set to enjoy my personal checking account freedom. The problems started almost immediately, my first direct deposit went in and my online interface showed I had $200 current and $200 available balance. I patted myself on the back and hit the store, well cafe for lunch but still. I ate my lunch and ran my card, the world was good, or so I thought. The next day I went in to check my balance and found not only had my available balance decreased but it had gone to -$27, WTF. The bank holds ALL deposits for 3 days even payroll direct deposits. I overdrew the account because of the hold and got hit with an NSF fee. They eventually waived the fee but it left a bad taste in my mouth. When I opened the account I made sure there were ATM’s in my area that weren’t super far away. I verified there was an ATM at a grocery store less than 1 mile away so I thought it would be good. Man was I ever wrong. I didn’t take into account 2 major problems.

  1. The ATM in question is fortressed behind ~8 red lights, a parking lot, and grocery store doors. It takes 30+ minutes round trip to get to that thing.
  2. The main thing I use cash for is to get out of the parking garage at work, there wasn’t any ATM’s convienent to work so I was constantly getting money out of a non network ATM.

What I Learned

I learned that it pays to know as much as you can about a bank account before you jump in. I went in with my eyes closed and it cost me. You would be surprised at how quickly ATM fees negate any potential benefit of an interest bearing checking account. In the year that I have had the account I have spent $38.50 on ATM fees and made a whopping $1.84 in interest. You slap those two numbers up against each other and you get earnings of -$36.66. I don’t know about you guys but that seems like a pretty bum deal to me. I have been with the same bank since I was a teenager. I watched it get bought out 3 times and they have been solid to me through and through. There is no reason for me to be crazy and get an online checking account when I could have gotten an account with my local bank which would cost me less in fees and hassle. Interest isn’t always the biggest decision you need to make when deciding where to put your money.

———-

Do you like this series? Check Out The Previous Foul Ups:

Foul Up #21 – Brian (My Next Buck) – Pale Dude’s Shouldn’t Go Tanning
Foul Up #20 – Shawanda (You Have More Than You Think) – How Financial Knowledge Can Hurt
Foul Up #19 – Christine (Money Funk) – Love Can Hurt Your Financial Situation
Foul Up #18 – Clayton (Just Good Financial Advice) – Trying to Get Rich Quick
Foul Up #17 – Craig (Budget Pulse) – Black Friday Purchase Becomes a Dust Collector
Foul Up #16 – Jesse (PF Firewall) – The Fine Print of Rental Properties
Foul Up #15 – Paul (Fiscal Geek) – Unsuccessfully Restoring American Muscle
Foul Up #14 – Mrs. Micah (Mrs. Micah – Finance For a Freelance Life) – How Getting Married Wrecked My Finances
Foul Up #13 – Evan (My Journey To Millions) – Speeding Up Payments on Loan Interest, Not Principal
Foul Up #12 – Elle (Couple Money) – Stretching Yourself to have a Comparable Car to Your Friends
Foul Up #11 – Revanche (A Gai Shan Life) – Sibling Bailouts Cost More than Just Money
Foul Up #10 – Brad (Enemy Of Debt) – There’s Nothing Interesting About Interest-Only Loans
Foul Up #9 – Jason (Redeeming Riches) – Buying a Car with a Balloon Payment at the End
Foul Up #8 – David (Money Under 30) – Being Too Eager to “Move Out” and “Move Up”
Foul Up #7 – Matt (Debt Free Adventure) – Upside Down and Paying The Price
Foul Up #6 – Brian (MyNextBuck) – Overdue Books Prevent Me From Renting an Apt
Foul Up #5 – Kelly Whalen (The Centsible Life) – Poorly Planned Vehicle Purchase Costs $24,000
Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money

465 Responses to Friday Financial Foul Ups: Being Down on High Interest Rate Checking
  1. Priscilla Gully
    May 19, 2018 | 12:00 pm

    My spouse and IWeMy partner and I stumbled over here coming from afrom aby a different web pagewebsitepageweb address and thought I mightmay as wellmight as wellshould check things out. I like what I see so now i amnow i’mi am just following you. Look forward to going overexploringfinding out aboutlooking overchecking outlooking atlooking into your web page againyet againfor a second timerepeatedly.

  2. Maximo Kiening
    May 19, 2018 | 5:12 pm

    Hey there! I know this is sort of off-topic, but I’d figured I would ask. Could you be interested in exchanging links or guest authoring a blog article or vice-versa? My site goes over a lot of the very same subjects as yours, and that I believe we can greatly benefit from each other. If you happen to be curious, feel free to shoot me an e-mail. I look forward to hearing from you! Great site by the way!

  3. Lauren Hucks
    May 19, 2018 | 7:55 pm

    This is my first time visitgo to seepay a visitpay a quick visit at here and i am reallyactuallyin facttrulygenuinely impressedhappypleassant to read alleverthing at onealonesingle place.

  4. vitamins
    May 19, 2018 | 10:17 pm

    Wow! Thank you! I constantly wanted to write on my website something like that. Can I include a part of your post to my site?

  5. health insurance
    May 19, 2018 | 10:17 pm

    Hi there, I found your blog by means of Google whilst looking for a related topic, your web site came up, it seems great. I’ve bookmarked it in my google bookmarks.

  6. medical school
    May 19, 2018 | 10:18 pm

    We are a group of volunteers and opening a new scheme in our community. Your website provided us with valuable info to work on. You’ve done an impressive job and our whole community will be grateful to you.

  7. Home Product and Service
    May 19, 2018 | 10:27 pm

    As soon as I observed this website I went on reddit to share some of the love with them.

  8. health
    May 19, 2018 | 10:27 pm

    You really make it appear really easy with your presentation however I to find this topic to be actually one thing that I think I’d never understand. It sort of feels too complex and extremely huge for me. I am looking ahead in your subsequent put up, I¡¦ll attempt to get the grasp of it!

  9. Home Product and Service
    May 19, 2018 | 11:25 pm

    A person necessarily lend a hand to make severely posts I might state. This is the first time I frequented your website page and so far? I surprised with the research you made to create this particular post extraordinary. Wonderful process!

  10. Home Product and Service
    May 19, 2018 | 11:53 pm

    As soon as I observed this web site I went on reddit to share some of the love with them.

  11. Jacalyn Mulkey
    May 20, 2018 | 4:13 am

    I don’t knowdo not know if it’swhether it’s just me or ifif perhaps everyone elseeverybody else experiencingencountering problems withissues with your blogyour websiteyour site. It seems likeIt appears likeIt appears as ifIt looks likeIt appears as though some of the textwritten text on yourwithin yourin your postscontent are running off the screen. Can someone elsesomebody else please commentprovide feedback and let me know if this is happening to them tooas well? This mightThis couldThis may be a problemissue with my browserweb browserinternet browser because I’ve had this happen beforepreviously. ThanksKudosAppreciate itCheersThank youMany thanks

  12. Home Product and Service
    May 20, 2018 | 4:53 am

    Excellent weblog here! Also your website rather a lot up fast! What web host are you the use of? Can I get your affiliate hyperlink in your host? I wish my site loaded up as fast as yours lol

  13. Home Product and Service
    May 20, 2018 | 7:57 am

    Undeniably believe that which you said. Your favorite reason seemed to be on the web the easiest thing to be aware of. I say to you, I certainly get irked while people consider worries that they plainly don’t know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side-effects , people could take a signal. Will probably be back to get more. Thanks

  14. Home Product and Service
    May 20, 2018 | 8:30 am

    Very nice info and right to the point. I am not sure if this is truly the best place to ask but do you guys have any thoughts on where to employ some professional writers? Thanks in advance 🙂

  15. Home Product and Service
    May 20, 2018 | 8:34 am

    Heya i’m for the first time here. I came across this board and I find It really useful & it helped me out a lot. I hope to give something back and help others like you aided me.

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/friday-financial-foul-ups-being-down-on-high-interest-checking/trackback/

Friday Financial Foul Ups: Being Down on High Interest Rate Checking

This week’s Friday Financial Foul Up will feature a guest post from Kyle at Suburban Dollar.  Kyle writes about his own financial experiences and openly states that he doesn’t know everything.  However, that makes his writing and his tone refreshing and I really enjoy reading his content.  If you aren’t already, look for Kyle on twitter (@suburbandollar).   Lastly, Friday Financial Foul Ups has been nominated for a Plutus Award. Please go here and give it a vote for Best Multi-Part Series. Enjoy!

If you would like to add your own financial foul up to this series, please contact me here.
_________

When I started Suburban Dollar a little over a year ago it was at the end of what many people would call Online Savings Account boom. Interest rates were in the mid 3’s down from their epic highs of around 5% APY. Online saving wasn’t new but it was gaining in popularity and people were flocking to it in droves, driven by banks like ING Direct and Emigrant Direct. The populatity wasn’t limited to savings accounts either, banks had started offering interest bearing online checking accounts. I wanted in on the action.

The Situation

At some point in the last year my wife and I decided enough was enough and we needed to part ways. We both wanted to be able to spend, a little, money without having to feel like the other was judging their spending. We agreed to a set allowance amount and that we would have separate spending accounts for ourselves and joint account for bills, household stuff, and that kind of junk. My wife decided to use a bank account that was setup for us when we got our second mortgage, I was left to my own decisions.

Where I Fouled up

Making your money make money is a key piece of the personal finance puzzle. Stagnant cash is worthless, if you aren’t using it then you need to use it. That was the only thing on my mind when it came time to open up a checking account. I scoured the interwebs looking for the best rates I could find on an online checking account. It turned out one of my online savings banks had a good rate for their checking product and I jumped at it. I made sure there were ATM’s in my area, they were a little out of the way but I was sure I wouldn’t mind. Everything was set and I was ready to roll, they took direct deposits and after finagling with my payroll department I got set to enjoy my personal checking account freedom. The problems started almost immediately, my first direct deposit went in and my online interface showed I had $200 current and $200 available balance. I patted myself on the back and hit the store, well cafe for lunch but still. I ate my lunch and ran my card, the world was good, or so I thought. The next day I went in to check my balance and found not only had my available balance decreased but it had gone to -$27, WTF. The bank holds ALL deposits for 3 days even payroll direct deposits. I overdrew the account because of the hold and got hit with an NSF fee. They eventually waived the fee but it left a bad taste in my mouth. When I opened the account I made sure there were ATM’s in my area that weren’t super far away. I verified there was an ATM at a grocery store less than 1 mile away so I thought it would be good. Man was I ever wrong. I didn’t take into account 2 major problems.

  1. The ATM in question is fortressed behind ~8 red lights, a parking lot, and grocery store doors. It takes 30+ minutes round trip to get to that thing.
  2. The main thing I use cash for is to get out of the parking garage at work, there wasn’t any ATM’s convienent to work so I was constantly getting money out of a non network ATM.

What I Learned

I learned that it pays to know as much as you can about a bank account before you jump in. I went in with my eyes closed and it cost me. You would be surprised at how quickly ATM fees negate any potential benefit of an interest bearing checking account. In the year that I have had the account I have spent $38.50 on ATM fees and made a whopping $1.84 in interest. You slap those two numbers up against each other and you get earnings of -$36.66. I don’t know about you guys but that seems like a pretty bum deal to me. I have been with the same bank since I was a teenager. I watched it get bought out 3 times and they have been solid to me through and through. There is no reason for me to be crazy and get an online checking account when I could have gotten an account with my local bank which would cost me less in fees and hassle. Interest isn’t always the biggest decision you need to make when deciding where to put your money.

———-

Do you like this series? Check Out The Previous Foul Ups:

Foul Up #21 – Brian (My Next Buck) – Pale Dude’s Shouldn’t Go Tanning
Foul Up #20 – Shawanda (You Have More Than You Think) – How Financial Knowledge Can Hurt
Foul Up #19 – Christine (Money Funk) – Love Can Hurt Your Financial Situation
Foul Up #18 – Clayton (Just Good Financial Advice) – Trying to Get Rich Quick
Foul Up #17 – Craig (Budget Pulse) – Black Friday Purchase Becomes a Dust Collector
Foul Up #16 – Jesse (PF Firewall) – The Fine Print of Rental Properties
Foul Up #15 – Paul (Fiscal Geek) – Unsuccessfully Restoring American Muscle
Foul Up #14 – Mrs. Micah (Mrs. Micah – Finance For a Freelance Life) – How Getting Married Wrecked My Finances
Foul Up #13 – Evan (My Journey To Millions) – Speeding Up Payments on Loan Interest, Not Principal
Foul Up #12 – Elle (Couple Money) – Stretching Yourself to have a Comparable Car to Your Friends
Foul Up #11 – Revanche (A Gai Shan Life) – Sibling Bailouts Cost More than Just Money
Foul Up #10 – Brad (Enemy Of Debt) – There’s Nothing Interesting About Interest-Only Loans
Foul Up #9 – Jason (Redeeming Riches) – Buying a Car with a Balloon Payment at the End
Foul Up #8 – David (Money Under 30) – Being Too Eager to “Move Out” and “Move Up”
Foul Up #7 – Matt (Debt Free Adventure) – Upside Down and Paying The Price
Foul Up #6 – Brian (MyNextBuck) – Overdue Books Prevent Me From Renting an Apt
Foul Up #5 – Kelly Whalen (The Centsible Life) – Poorly Planned Vehicle Purchase Costs $24,000
Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money

465 Responses to Friday Financial Foul Ups: Being Down on High Interest Rate Checking
  1. Priscilla Gully
    May 19, 2018 | 12:00 pm

    My spouse and IWeMy partner and I stumbled over here coming from afrom aby a different web pagewebsitepageweb address and thought I mightmay as wellmight as wellshould check things out. I like what I see so now i amnow i’mi am just following you. Look forward to going overexploringfinding out aboutlooking overchecking outlooking atlooking into your web page againyet againfor a second timerepeatedly.

  2. Maximo Kiening
    May 19, 2018 | 5:12 pm

    Hey there! I know this is sort of off-topic, but I’d figured I would ask. Could you be interested in exchanging links or guest authoring a blog article or vice-versa? My site goes over a lot of the very same subjects as yours, and that I believe we can greatly benefit from each other. If you happen to be curious, feel free to shoot me an e-mail. I look forward to hearing from you! Great site by the way!

  3. Lauren Hucks
    May 19, 2018 | 7:55 pm

    This is my first time visitgo to seepay a visitpay a quick visit at here and i am reallyactuallyin facttrulygenuinely impressedhappypleassant to read alleverthing at onealonesingle place.

  4. vitamins
    May 19, 2018 | 10:17 pm

    Wow! Thank you! I constantly wanted to write on my website something like that. Can I include a part of your post to my site?

  5. health insurance
    May 19, 2018 | 10:17 pm

    Hi there, I found your blog by means of Google whilst looking for a related topic, your web site came up, it seems great. I’ve bookmarked it in my google bookmarks.

  6. medical school
    May 19, 2018 | 10:18 pm

    We are a group of volunteers and opening a new scheme in our community. Your website provided us with valuable info to work on. You’ve done an impressive job and our whole community will be grateful to you.

  7. Home Product and Service
    May 19, 2018 | 10:27 pm

    As soon as I observed this website I went on reddit to share some of the love with them.

  8. health
    May 19, 2018 | 10:27 pm

    You really make it appear really easy with your presentation however I to find this topic to be actually one thing that I think I’d never understand. It sort of feels too complex and extremely huge for me. I am looking ahead in your subsequent put up, I¡¦ll attempt to get the grasp of it!

  9. Home Product and Service
    May 19, 2018 | 11:25 pm

    A person necessarily lend a hand to make severely posts I might state. This is the first time I frequented your website page and so far? I surprised with the research you made to create this particular post extraordinary. Wonderful process!

  10. Home Product and Service
    May 19, 2018 | 11:53 pm

    As soon as I observed this web site I went on reddit to share some of the love with them.

  11. Jacalyn Mulkey
    May 20, 2018 | 4:13 am

    I don’t knowdo not know if it’swhether it’s just me or ifif perhaps everyone elseeverybody else experiencingencountering problems withissues with your blogyour websiteyour site. It seems likeIt appears likeIt appears as ifIt looks likeIt appears as though some of the textwritten text on yourwithin yourin your postscontent are running off the screen. Can someone elsesomebody else please commentprovide feedback and let me know if this is happening to them tooas well? This mightThis couldThis may be a problemissue with my browserweb browserinternet browser because I’ve had this happen beforepreviously. ThanksKudosAppreciate itCheersThank youMany thanks

  12. Home Product and Service
    May 20, 2018 | 4:53 am

    Excellent weblog here! Also your website rather a lot up fast! What web host are you the use of? Can I get your affiliate hyperlink in your host? I wish my site loaded up as fast as yours lol

  13. Home Product and Service
    May 20, 2018 | 7:57 am

    Undeniably believe that which you said. Your favorite reason seemed to be on the web the easiest thing to be aware of. I say to you, I certainly get irked while people consider worries that they plainly don’t know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side-effects , people could take a signal. Will probably be back to get more. Thanks

  14. Home Product and Service
    May 20, 2018 | 8:30 am

    Very nice info and right to the point. I am not sure if this is truly the best place to ask but do you guys have any thoughts on where to employ some professional writers? Thanks in advance 🙂

  15. Home Product and Service
    May 20, 2018 | 8:34 am

    Heya i’m for the first time here. I came across this board and I find It really useful & it helped me out a lot. I hope to give something back and help others like you aided me.

Leave a Reply


Wanting to leave an <em>phasis on your comment?

Trackback URL http://mynextbuck.com/friday-financial-foul-ups-being-down-on-high-interest-checking/trackback/