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

theatlantic.com

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

#41

Post by wtvanhest »

RhysU wrote: post #31

> living paycheck to paycheck is now a commonplace middle-class experience The article states this as fact. Seems wholly bogus, but perhaps I define middle class weirdly. I think of it as robust stability moreso than income earned. Anyone know a plausible source for the assertion?

The middle class in America average about $50k in household income ($25k each).

Regardless of income, by definition, the middle class should always average out to basically break even unless we are in periods of rapid growth. This should happen because their willingness to pay for food and shelter is determined by what they make and eventually prices will catch up to income if income doesnt grow.

I imagine the concept I describe can better be explained by an economist.

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

#42

Post by fefesafaea »

protomyth wrote: post #25
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…

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?

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.

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

#43

Post by zanny »

protomyth wrote: post #25
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…

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?

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.

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

#44

Post by tedmiston »

ajdlinux wrote: post #21
_m8fo wrote: post #20

Earlier quoted context omitted.

> Loretta Taylor, who lives in the southern-Illinois town of Mount Vernon, started using a Walmart MoneyCard when her local bank branch closed late last year, forcing her to drive 45 minutes to make a deposit. A registered nurse, she has lately been working as an in-home caregiver, and sometimes gets paid in cash, which she can put onto the card (for a $3 fee) at a nearby Walmart. “I’m not making much money right now…

The way I read it, it takes 45 minutes to drive to her old bank branch, whereas the nearby Walmart is much closer.

Another reasoning for joining a credit union — being able to deposit and withdraw from any nearby credit union whether it's your own or not for no fee.

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

#45

Post by flukus »

sigstoat wrote: post #32
flukus wrote: post #19

Earlier quoted context omitted.

They can't get debit cards from a bank? Even my mastercard is tied to a debit account. Edit - from the comments below it sounds like the issue is caused by a fucked up banking system more than anything.

you can overdraft debit cards, and of the college students i've known over the years, that's the most common thing to overdraft. and then find out about your overdraft (and the 17 following it) a week later when you get a letter in the mail.

> you can overdraft debit cards

Not always, my debit cards have always had the overdraft facility turned off. If there's no money in the account then the transaction doesn't go through.

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

#46

Post by flukus »

protomyth wrote: post #30
flukus wrote: post #19

Earlier quoted context omitted.

They can't get debit cards from a bank? Even my mastercard is tied to a debit account. Edit - from the comments below it sounds like the issue is caused by a fucked up banking system more than anything.

They cannot get a bank account to get a debit card. Banks and a lot of credit unions have become problematic for low income folks.

Why is it hard to get a bank account? There is no risk to the bank from a low income person having an account, worst case for them is it's empty.

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

#47

Post by snuxoll »

ricardonunez wrote: post #39
asafira wrote: post #33

Earlier quoted context omitted.

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?

A lot of banks got rid of their free or low cost checking accounts. Hard to find anything less than $12 per month when the balance is below $1500.

I wouldn't say it's hard, Wells Fargo has free checking for anyone with over $500/mo in direct deposits or makes 10+ debit card transactions per month. Even someone making part-time minimum wage can probably make the debit card requirements without an issue.

Every credit union in my area offers free draft accounts as well, just put the $25-100 member balance into savings and you're done.

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

#48

Post by fefesafaea »

bpodgursky wrote: post #38
fefesafaea wrote: post #35

Earlier quoted context omitted.

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.

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.

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.

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

#49

Post by rdl »

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.

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.)

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

#50

Post by paulcole »

spking wrote: post #29

Some may not realize this, but there is a YC backstory here. Sam Altman's startup (Loopt) was acquired by Green Dot (the company behind the WMT Money Card) back in 2012. Many of the GoBank features mentioned in the article (Stash/Vault, Fortune Teller) came directly from Steve Streit (Green Dot CEO), acqui-hired Loopt employees, backed up by IDEO research that was commissioned by Steve several months before the acqui…

>Don't f*ck with my customers' money!

Yeah! That's what the fees are for!

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