Can you save money by not banking?

Question

It seems to me, that if you are living paycheck to paycheck - you actually lose money by banking...

You could spend $16 a month to cash your checks or you could spend $30 - $120 a month in over-draft fees by banking.

Do you agree?

Every bank does that thing though where they take funds out exactly one minute before they make your deposit... the system is set up to cause overdrafts whenever possible...

I don't overspend... and i don't drink beer.

Answer 1

You should also check to see if you qualify for a Credit Union. You generally have to overdraft and fee issues with big banks. I've been with my credit union for at least 2 years and I havent had that problem. I have overdraft protecton. Any deposits that go into my checking account are available that minute even if i deposited a check. There are no fees on my checking account. I get 10 free non-CU atm withdrawals a month. And I get interest on my checking and savings account regardless of my account balances.

There are so many banking options out there. You really need to shop around. You shouldn't knock all banks just because you ended up with a really bad one on what probably was your first bank.

Answer 2

Yes, banks do charge for overdrafts unless you have overdraft protection.

However, the best way to avoid those charges is to not have overdrafts. Do not try to play "beat the bank" and write checks when you don't have the money in the account.

In the old days, you had several days before a check would clear the bank, now with electronic checks and transfers a check can clear in a few hours. Be smart and hold off on those purchases and you wont have overdrafts. Also build up a cushion of a couple of hundred dollars to protect yourself against financial emergencys.
Cut out the cable, cell phone or whatever you need to do to save money.

Answer 3

You need a new bank. Many banks offer free checking and as a person that lives check to check, I am on my way with a savings account also. You need to sit down and make a bugdet. $300 a month on beer is not going to help you at all.

Answer 4

How about you don't write checks if you don't have the money to cover them. you won't get charged overdraft fees It's called living within your means. We have all been there, it's just learning to cut corners. Stop smoking, buying coffee every morning buying the newspaper all these little things add up.