Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Walmart's effort to get customers to build up their savings accounts

theatlantic.com

Post reply on HN
Print view View original

111–120 of 222 posts

Re: Walmart's effort to get customers to build up their savings accounts

#111

Post by lazyasciiart »

kefka wrote: post #76
bpodgursky wrote: post #73

Earlier quoted context omitted.

The FAQs ( https://www.walmartmoneycard.com/account/faqs ) say > You can withdraw cash from your card at any Walmart register or MoneyCenter. This service is free for the Walmart MoneyCard product with Cash-Back Rewards. Where are you looking?

I suppose you're in the wrong income bracket to have considered services from them. Yes, they do charge fees at the register, regardless your link. When I went and deposited the $200 check from Wal-mart at a register, and $197 goes in... yeah. You can link URL's all you want. But 3$ disappeared in that transaction for "reasons". I know because I've used the plans that people here are talking about. Unlike the rest of…

Withdrawing cash != cashing a check. Stop accusing people of not being familiar with these products just because they aren't conflating different services the way you are.

Re: Walmart's effort to get customers to build up their savings accounts

#112

Post by thinkling »

batiudrami wrote: post #79
bpodgursky wrote: post #24

Earlier quoted context omitted.

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.

>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?

Not just in the US. I encountered fees in several countries in Europe (definitely NL).

Re: Walmart's effort to get customers to build up their savings accounts

#113

Post by flukus »

panzer_wyrm wrote: post #106

Slighlty offtopic - but why are not debit cards popular in US. A card in which you put money and withdraw/pay untill they ran out. No overdraft/credit/direct debit bullshit to be concerned with. They are perfect solutions for the poor and underbanked... whatever that means. Small fees, small charges, impossible to rack gazzilion dollars in penalty fees.

I was wondering the same thing. From the comments it seems as though the US banking system seems to be stuck in the 80's. I can't believe they still have checking accounts, in my mid 30's now and I've cashed one check in my life.

Re: Walmart's effort to get customers to build up their savings accounts

#114

Post by Aloha »

kefka wrote: post #68
fefesafaea wrote: post #65

Earlier quoted context omitted.

Not sure why you are accusing me of intellectual dishonesty, unless the goal is to derail the conversation. You are right to say that a few of the specifics I gave were not correct. I was clearly not arguing that. However, the specifics you gave were not 100% correct either. For instance, if you go to an atm machine in a wal-mart and attempt to withdraw cash, you will be charged 3 dollars. The fee breakdown I linked…

You do realize you're talking to people who've never had to use these services, never made under $40K (except when living at home), and are many steps removed from ever having to go through this? Yeah. I have. I did the Green Dot. Pile of shit, with hidden service fees, usage fees, loading fees, fee fees. Oh yeah, YC. Ive been on food stamps. I've been on unemployment. Even been homeless for a time. Right now, I have…

I think another point to be made is the OP is correct - most non-bank alternatives are horrible, but so much of modern society is inaccessible if you do not have a bank account or bank account analog.

Also, to quote from the article.

"Check-cashing outfits, payday lenders, and similar businesses are often thought of as merely preying on poor people, who, the conventional wisdom goes, tend to make bad financial decisions. Lisa Servon, a University of Pennsylvania professor of city and regional planning, offers a different angle in her recent book, The Unbanking of America: How the New Middle Class Survives. 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."

I understand where you're coming from, I was in the payday loan trap at one point.. robbing peter to pay paul as it were, I made much less than 40k a year, its only in the last 5 years I've started to get north of 50k, and gotten comfortable.. now I save save save..

Re: Walmart's effort to get customers to build up their savings accounts

#115

Post by flukus »

ilaksh wrote: post #70

The reason I have trouble saving is not because I am a weak-willed low-life as implied by this article. The reason is because there is not enough money to pay for things that I need, so I have to make difficult choices about what to go without. And choosing to save usually seems unwise when it means neglecting some other need.

> And choosing to save usually seems unwise when it means neglecting some other need.

For some people it's that simple, for others working out what they need and when they need it is more complicated. Advertising is a multi billion dollar industry based around convincing people they need certain things or certain brand names.

I'm sure we've all met people that spent more on electronics than they really need to browse facebook, or dealt with customers that need to be coached on what they need.

Re: Walmart's effort to get customers to build up their savings accounts

#116

Post by Aloha »

Spooky23 wrote: post #16
qntty wrote: post #9

Earlier quoted context omitted.

Except that by giving walmart money that could be invested conservatively, you've actually losing money to inflation. True, this is exactly what most people do with their banks, but banks aren't win-win either, they're both businesses that offer these services because it makes them money.

How do you expect the factory worker to start investing her Interest is a waste of time anyway these days. My credit union is paying 0.10% on savings accounts under $100k, and something like 0.25% over that amount. A "high yield" online only account might pay as high as 1%.

this is probably the most valuable comment here.

Often the poor are poor because of a lack of financial literacy. I've seen it in those around me, and in my own parents. Getting people to save money for a rainy day is powerful. I've started doing microloans to help lift my friends up too, I made it.. and with a little help, maybe I can lift them up with me.

Re: Walmart's effort to get customers to build up their savings accounts

#117

Post by ars »

fefesafaea wrote: post #98
morgante wrote: post #55

Earlier quoted context omitted.

> 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.

It's important to note that many large banks actively discourage customers from opting out of overdrafts. So much so that they even have scripts they make their tellers recite. For example, if you attempt to opt out, the teller might say, "but what if you are at the gas pump and can't get gas because you have opted out of overdrafts?" The subtext being, "wouldn't it be better to get enough gas to get home and in the…

Allowing overdraft for checks can save you money though since you'd have to pay the depositors fee otherwise.

A good bank let's you disable overdraft for debit card while enabling it for checks.

Re: Walmart's effort to get customers to build up their savings accounts

#118

Post by dajohnson89 »

morgante wrote: post #72
TheSpiceIsLife wrote: post #67

Earlier quoted context omitted.

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 on…

Here are my various no-fee checking accounts: * 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.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.

Bank of America customer here. Not aware of any fee being applied to my checking account.

Re: Walmart's effort to get customers to build up their savings accounts

#119

Post by johndotsun »

bpodgursky wrote: post #24
fefesafaea wrote: post #13

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 mone…

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.

>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.

Re: Walmart's effort to get customers to build up their savings accounts

#120

Post by losteverything »

I load cards often and will make this surprising statement.

Many regulars that load already save. Cash. They need a card for certain purchases. They load the exact amount.

They load sometimes, with a debit card- which signals a bank account.

They purchase other items with cash and govt assistance debit card. They save their cash...

All the loadable cards (bluebird, visas, vanilla, greendot, etc) are only a part of a families toolchest of payment options.

The image of the totally poor person loading a card is not my reality.

Post reply on HN