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> An interesting wrinkle about net interest is that most customers don’t contribute much. In much of the U.S., median checking account balances at account creation are only around $3,000 Thats a lot of money not in crypto or stocks. Surprising.
I grew up hearing 6 months expenses liquid cash on hand at all times
So for a common amount to be $3,000 deposited is surprising
> An interesting wrinkle about net interest is that most customers don’t contribute much. In much of the U.S., median checking account balances at account creation are only around $3,000 Thats a lot of money not in crypto or stocks. Surprising.
If you think that having $3,000 in a checking account is being wasteful because that's a "lot of money", you shouldn't be buying stocks or crypto.
I thought the common amount deposited would be like 1/10th of what the article said
I was once in a meeting with one of the senior executives at JPMorgan, where the guy smugly told me he felt they were “doing a service for the community” by charging people overdraft fees. After leaving the meeting, my very senior colleague said, “I had to hold myself back from throwing that guy out of his window.”
These sorts of articles — half PR, half history lesson — tend to leave out these sorts of politically inconvenient but important bits of history. It’s so much work to unpack the bias...
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Not to mention everyday expenses. You can't pay your rent or phone bill with stocks or cryptocurrency.
It really depends where on the income and wealth ladder you are. Lower and middle income, cash is king. Upper income, you’re as invested as possible and you’re able to pay for expenses with a combination of credit/margin, investment income, and comp (salary and equity liquidation). You’re keeping as little cash on hand as possible because “cash is trash” and doesn’t keep up with inflation such that assets do.
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Why in the world wouldn't you want to do it.
Sounds like you've never had a car break down. Or a relative get hurt on the other side of the country. Or been seriously ill. Or unemployed. Or had a major appliance break. Or a million other things that happen to people every single day.
Use credit card, it’s the card issuers that are on the hook for fraud. It’ll help you build credit. Use debit when you don’t have the means or credit history.
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Why in the world wouldn't you want to do it.
Sounds like you've never had a car break down. Or a relative get hurt on the other side of the country. Or been seriously ill. Or unemployed. Or had a major appliance break. Or a million other things that happen to people every single day.