Banks are a waste of your money!

[moneyrant]

Have a bank account? Wasting your money. Worhtless institution, nothing more. You lend money to them so they can charge you fees. Makes sense huh?

[sdc2027]

You do have a point there- money doesn't earn a bit of interest to keep up with the interest on bills or on with the economy.

[2moretrees]

So where do you suggest a person keeps their money?

[mbhunter]

A couple of suggestions:

How are you using your bank's services? If you're using overdraft protection or out-of-network ATMs, then these fees are avoidable. If they're for normal transactions, then you might want to find out how to avoid them, or move on to a different bank.

Unfortunately, banks don't really love the people with savings accounts nearly as much as they love the people with car loans, mortgages, or credit cards, for easy-to-understand reasons.

You might want to try a credit union if you can become a member. They typically do better than banks do in terms of not charging a lot of garbage fees.

John Wedding

[moneyrant]

money doesn't earn a bit of interest to keep up with the interest on bills or on with the economy

Inflation = lose money

So where do you suggest a person keeps their money?

Invest or keep at home. Invest = chance to make money. Keep at home = lose less money than at bank

How are you using your bank's services? If you're using overdraft protection or out-of-network ATMs, then these fees are avoidable. If they're for normal transactions, then you might want to find out how to avoid them, or move on to a different bank.

Doesn't matter. Lose money no matter what. Keep money under your mattress.

[DivaJen]

That's why I love my credit union.

Checking = free. Savings, money market, other investment options = interest-bearing. ATM fees - none. ATM locations = enough convenient locations so as to be a non-issue for me. Online banking = free. Tellerphone = free.

So while banks may be more costly than they're worth, my credit union rules! Bottom line is that my money makes money for me there.

[moneyrant]

Rare oasis in middle of bank thievery. Statement amended. Banks are a waste of your money! (except divajen's credit union)

[PennyPincher]

Banks are certainly not out there to make our lives easier and to help us earn money, although they like to make it appear so. Unfortunately, they are a necessary evil. However, I must say that I've been incredibly happy with my online bank account through ING Direct. I still have an account with a standard bank, but ING is where I've kept my money - for the last two years. They pay 2.2% on savings accounts!!! Try to find a bank that pays that... They make it easy for automatic payments to/from other accounts that you have, and their online tool is excellent. They are FDIC insured, and offer CDs, great mortgage rates, and more. They can extend higher interest rates because they don't have the overhead costs that freestanding banks have. Of course they are still making money, but at least the customer makes more too! If you are referred by a current customer, you even get $25 JUST for signing up!! Email Here if you'd like a link to earn the $25. Check them out: www.ingdirect.com

[moneyrant]

Originally Posted by PennyPincher

Banks are certainly not out there to make our lives easier and to help us earn money, although they like to make it appear so. Unfortunately, they are a necessary evil. However, I must say that I've been incredibly happy with my online bank account through ING Direct. I still have an account with a standard bank, but ING is where I've kept my money - for the last two years. They pay 2.2% on savings accounts!!!

3% inflation you lose 0.8% a year. Sounds like a deal to me! Just proves my point. Avoid all banks. They're worthless.

[DivaJen]

Originally Posted by moneyrant

3% inflation you lose 0.8% a year. Sounds like a deal to me! Just proves my point. Avoid all banks. They're worthless.

If I hide my money under the mattress, isn't it losing 3% of its value? Given a choice between losing 3% of its value and 0.8%, I'd still choose the latter. investments aside, one still needs easy and immediate access to a certain amount of one's money for the bills that go along with daily life.

[moneyrant]

Great if ING allowed checking, free ATM, et all. Doesn't. Marketed as investment. Have to hook it to another bank account. Waste of money. Better off putting that money toward debt (not under a matress).

[bruce65]

Another thing to try would be US Savings Bonds. You can buy them online at: http://www.publicdebt.treas.gov/sav/sav.htm The series I are only paying 3.39%, but it's better than the banks are paying and it is tax deferred. Also, they adjust the rate in May & November, so the rate may go up in November. One caveat: you can't cash them in for at least a year so they are better for money that you want to stash away so you won't be tempted to spend it. You may want to buy a small one every month or so and then after a year, you will at least have access to some money if you really, really need it. If nothing else, the interest will offset what you are either paying in fees or are missing out on by leaving $$ in a non-interest bearing account.

[PennyPincher]

As for ING...it's just a suggestion for people who need to keep some money accessible, and wish to earn more than .1%, like alot of banks. There are definitely other options that yield a better return - and those I consider to be investments. However, most people do have a checking account, so having it linked to ING isn't such a big deal... Whatever floats your financial boat - just offering another option.

[moneyrant]

Best returns? Pay off credit card debt. Stupid to have extra money in bank if you have credit card debt. Plain and simple.

[PMMM]

There are some online alternatives that pay decent interest rates. (At least for the times.) One I know of pays 2% apy up to 35K and then 1% above that. They also have a checking account that pays 4% apy up to 10K but you have to meet certain requirements each month to get that rate. For instance you have to have at least 10 Debit card transactions per month. But all the accounts are free. My only issue with them was that ACH transfers were limited to $2500.00 per day and you can't download transactions.

But it pays better than any other bank I have found.

Regards,

PMMM

[ramirezhenry55]

If you have the money that you won't be needed in a few years, you might wanna try investing them in mutual funds. It gives higher interest rates.

[whitewater30]

5 of 10 companies with the worst customer service are big banks. After the bailout a couple of years ago, I left bank of America. I am now at a credit union and the service is much better. If you are looking for better savings rates, please check out checkingfinder.com.

[DrSavin]

Why did you resurrect a six year old thread written by an obvious ignorant?

[dczech09]

If you're bank is charging a fee just to have an account with them, then guess what? You have every right to move your business to a bank that won't charge you. I go through US Bank and haven't been charged a fee. I absolutely agree that you shouldn't be charged a fee for simply using an account as they make money from lending your dollars anyway. However, I will argue that all banks aren't as evil as some people make them out to be; in the end they're trying to stay in business and if they screw up their operations so bad that they must charge a fee for an account, then I say let the market forces of supply and demand push them out of existence. In the end, it is not the government that should be regulating banks, it is us the consumers.

[PMMM]

Originally Posted by DrSavin

Why did you resurrect a six year old thread written by an obvious ignorant?

Wow, I apologize. I contributed to this as well. I see the data now and won't make that mistake again.

Thanks Dr. Savin!