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Interest being paid to me on my checking account balance

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#1
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2353
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U.S. Capitol
This amounts to pennies per month. What a waste of time and effort!! Even if operating the software is "free" there has to be a cost involved, and it's a damned nuisance for me to have to find the $0.01 or $0.03 every month and enter it in my checkbook. I'm tempted to just leave the difference in my checkbook, as if it's just an arithmetic error on my part.

Why the hell did the bank manager pretty much ***insist*** that I accept this virtually worthless bonus? Does he earn a trip to the Bahamas? I really doubt it... :x :evil: :x
 

#2
makbo  
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23-Apr-2014 3:44pm
Location:
In The Counting House
Spell Czech wrote:Even if operating the software is "free" there has to be a cost involved

No, there doesn't, especially since they don't have to issue a 1099-INT. For the bank, the overhead cost of recording your interest credit is zero out to at least 3 or 4 decimals.

Spell Czech wrote:I'm tempted to just leave the difference in my checkbook, as if it's just an arithmetic error on my part.

Sounds like a good plan, as your (paper?) checkbook register is pretty much only good for helping you to avoid overdrafts, and failing to record the interest earned will not interfere with that. There are two possible solutions: first, download your checking transactions into a financial software program (or simply use the bank's online app as your register), then you won't have a nuisance to deal with. The other solution is simply to maintain a much higher balance in your account, then the interest will be worth recognizing and you won't have to worry about overdrafts. And if the fed reserve ever stops playing politics, interest rates may go up to normal levels again someday.

Many major banks pay no interest on checking, only on the companion savings account. I think Wells Fargo is one of the exceptions. My business checking (not Wells) also pays interest (on the most recent statement, it showed APY 0.00%, interest earned $0.02).

Spell Czech wrote:Why the hell did the bank manager pretty much ***insist*** that I accept this virtually worthless bonus?

In today's environment, the primary reason the bank offers you a checking account in the first place is not to attract deposits, it is for the expected overdraft and other fees they can charge, as well as other financial products they can sell to you. You as an individual may not be a good customer for them (it does cost them to process your checks, after all), but overall, checking accounts seem to be "loss leaders" for the banks these days.

https://www.forbes.com/sites/billconerl ... n-deposits
 


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