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Thanks for the info. I have gotten quite an education through this thread. I had no idea about any of that (what you posted above) - just completely off my radar. I guess either I don't know anyone who is cutting things that close financially, or if I do it's not something they're talking about.
Everyone knows about credit scores and "credit reporting agencies" but there are also a number of other reporting agencies that are virtually unknown to people who don't use their services.
For example there is also the Medical Information Bureau, which tracks medical info for insurance companies. When someone applies for a life insurance policy, the insurer compares the info on your application with the info MIB has.
When you try to rent an apartment, there are outfits that collect non-credit info (e.g. lawsuits/evictions) to screen you.
When you buy a home and shop for homeowner's insurance, there's a screening outfit for that too.
I got the warning letter too when I exceeded 6 online transfers from my son's savings account to his checking account. (I have control over his college money which is in a savings account.) However, it seems to apply only to the online transfers...if they were made through the ATM, they didn't count toward the limit.
The 6 limit is a federal law not a banking practise.
Some employers resist direct deposit. My last employer would NEVER use direct deposit for paychecks.
My current employer REFUSES to do direct deposit. Just flat out refuses, even though it's bene brought up the money that can be saved not printing checks. Well, they use a payroll company, but even if they still had to use it, I assume there would be savings for not having to print paper checks.
My current employer REFUSES to do direct deposit. Just flat out refuses, even though it's bene brought up the money that can be saved not printing checks. Well, they use a payroll company, but even if they still had to use it, I assume there would be savings for not having to print paper checks.
My employer didn't use direct deposit because he NEEDED to float paychecks over the weekend. Actually, the need to float was probably only occasional,. but he needed to have the option to float over the weekend, and of course, direct deposit totally eliminated any possibility of float.
For him, the costs associated with paper checks were preferable to the alternative of direct deposit.
The savings account limits are based on outgoing transactions. You can add as much money as you want at any time. But you can only make 6 withdrawals/outgoing transactions per month. Money Markets allow a checkcards with Visa logos and have different rules on withdrawals. Otherwise you need a different type of account (Checking). Some banks also offer interest checking with a similar rate as the savings account, so checking is the most flexible option here.
Direct Deposit wasn't very common even 15 years ago here. My first few jobs had paper checks. Lots of people do not "trust" direct deposit, and of course plenty of people do not have bank accounts so paper checks still have their place.
At larger corporations (think Fortune 500, etc..) - direct deposit has been going on for a lot longer than 15 years. My father's paycheck was directly deposited to his bank probably at least as far back as 25 years ago. And when I worked at Walmart (now - 20 years ago) that was an option...
Now - that being said, paper checks were of course always an option. Though now - that may be changing...
At larger corporations (think Fortune 500, etc..) - direct deposit has been going on for a lot longer than 15 years. My father's paycheck was directly deposited to his bank probably at least as far back as 25 years ago. And when I worked at Walmart (now - 20 years ago) that was an option...
Now - that being said, paper checks were of course always an option. Though now - that may be changing...
My first "real" job right out of high school in 1973 was a teller at a bank. All of the bank employees were paid by direct deposit. I hated it at that time. All of my friends were getting a paycheck every week and I somehow felt I was being cheated by never getting a check but instead having a bi-weekly deposit show up in my checking account. Of course, the fact that my gross salary was right around $5,000 a year for a full time job probably contributed to that feeling of being cheated.
Although, at that time we really did have banker's hours. Weekdays only; open from 9:00 a.m. to 2:00 p.m., had to get there a half hour before we opened and then usually worked an hour or two after close to settle up at the end of the day. No nights or weekends. Rent was $125 a month, gas was 30 cents a gallon. But I digress...
My employer didn't use direct deposit because he NEEDED to float paychecks over the weekend. Actually, the need to float was probably only occasional,. but he needed to have the option to float over the weekend, and of course, direct deposit totally eliminated any possibility of float.
For him, the costs associated with paper checks were preferable to the alternative of direct deposit.
I had to go back and read your post that I was referring to )))late afternoon brain fuzz(((. I can see why your employer did it. Mine does it because they cannot guarantee funds will be there for us.
*Meaning cuz they spend a ton money on their personal lives, not because funds are not generated til a certain time of week/month.
My boss doesn't do direct deposit either. But I am the only employee, other than the 2 owners. Everyone else is an independent contractor (real estate agents and construction subcontractors. So #1, it doesn't seem worth setting up direct deposit for 1 person. And #2, the boss really really likes having paper trails for everything, and for direct deposit, she wouldn't get a copy of a check back with the bank statement.
*Edit* Oh, and to answer the OP. I don't know a single person who doesn't have a checking account, who is over the age of about 16. I had no idea it was so prevalent, either. I figured that most people who had money, had a checking account these days.
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