Debt Stupid

I have to hand it to the Internet. It is the greatest medium ever created! So much so that a local peasant such as myself can do business over this great medium with other peasants around the world! Even look for bargains!

I was recently reminded of a banking incidence of mine I like to call the “$120.00 Fiasco.”

I opened a new local bank account to be able to deposit checks because I could no longer receive international direct deposits. So I decided the next best thing was to receive checks instead and deposit them locally so that they cleared faster and I didn’t have to mail them again to my online Internet bank once I received them—that process would have taken too long.

Keep in mind that these checks are drawn in US funds.

On my first visit to the local bank to open the account, I was offered coffee and donuts from the bank officer who attended to me. I thought to myself this is nice. I thankfully refused and then proceeded to hand her one of the international checks I would be receiving and after a few quick phone calls she said they could handle them but that she couldn’t tell me on the spot how much they would charge to cash (deposit) them. My online bank doesn’t charge me a dime to deposit these same checks. It is at this point, as I stared at her, I said to myself, well they can’t charge a whole lot of money, so I said “let’s try this one first.” A stupid move on my part, I grant you that. Always find out what services can cost you upfront.

With that she took my info and had me sign all sorts of documents because these were international checks. Every time I were to deposit one I had to go thru this she said, thanks to Homeland Security. Not with my online bank, but whatever.

After around three weeks I get the bad news when I looked at the bank balance. I noticed it just wasn’t balancing out. To the tune of over $100 dollars. The check was $500.00 and I was confused to say the least. I gave the bank a call and spoke to the person who took care of me the first time and she gave me the most unbelievable news. They had charged me $120 to cash my check! I could not do anything to get that money back because I had already signed agreeing to the terms.

In my view local banks are the worst kind of bank. My online bank doesn’t charge me any fees and I just have a checking account, not even a savings account, and the interest is a lot better. I can ride my checking account all the way down to zero and I will not get hit with a fee. Try that with one of my local banks without getting hit with a monthly fee for having no money!

In the end I opted to stick with my online bank and receive my money via wire transfer, the fee is five times cheaper than what my local bank hit me with.

I have to bitterly consider the $120.00 part of the cost of my education to becoming debt savvy! Work with me here, please. I should have taken the coffee and donuts.

Of course, this problem is a symptom of a bigger dilemma—that of living paycheck to paycheck. I am working on rectifying that.

Local banks versus online banks? No contest!