Tag Archives: Seythe McCoy

Be Wary of Convenience! (The ATM bomb)

I just saw on a CNN news ticker that some bank ATMS (ticker didn’t specify) are going to begin offering $1.00 and $5.00 withdrawal options.

At first glance, you may think “it is about darn time!”  Sometimes you just don’t need $20.  I can even see the benefit from a safety issue – less money withdrawn, less of a target.  Finally, you may not have $20.00 in the bank, but are in desperate need of cash –in-hand for a myriad of reasons.   All of these rationales and many others are logical. But BE WARY OF CONVENIENCE!

An article on www.Bankrate.com referenced the total amount Banks made in 2010 from ATM Fees. The results:  $7 Billion! (source: http://www.bankrate.com/financing/banking/lack-of-atm-fee-awareness/)

Side note: Interestingly enough, only 9% of the 1,000+ respondents knew that figure as well.

In August of 2012 CNN Money released an article that stated: “The fee banks charge non-customers for using their ATMS had edged up from $2.37 to $2.40, while the fee banks charge their customers for using out-of-network ATMs has climbed from $1.10 to $1.28.” (source: http://money.cnn.com/2012/08/13/pf/bank-fees-rise/index.html)

So what does this mean to you, the prudent fee-adverse consumer?

ATMS allow withdrawals in $20.00 increments & say charge a $2.50 fee to withdraw money from them if you are using a competitors ATM.  Let’s do the math:

Current Options*

  • $20.00 Withdrawal + $2.50 Fee = $22.50, that’s a 12.5% (INSTANT) interest charge to withdraw YOUR MONEY.
  • 10.00 Withdrawal + $2.50 Fee = $12.50, 25% (INSTANT) interest charge to withdraw YOUR MONEY.

New Options*

  • $5.00 Withdrawal + $2.50 Fee – $7.50, 50% (INSTANT) interest charge to withdraw YOUR MONEY
  • (I don’t think I need to calculate the interest on a $1.00 – You get the point)

More Comparisons v. $5.00 Withdrawal Fee (50%)


I listed all of these examples in order to make one point: Use the ATM, BUT use it wisely!

You may be paying out in interest more than what financial/investment accounts are earning on an annual basis!!!

Here are some tips to keep a little more dough in your pocket:

  1. Withdraw a larger amount.  (in the case you NEED to use an ATM)
  2. Plan ahead. If you may need cash in hand in smaller increments, go to your bank for a withdrawal at the window.
  3. Find a bank that does not charge an ATM fee for using out-of –network ATMs and reimburses you the “service fee” charged by competitor ATMS.

Happy Banking!!

 

*Banks do not charge “interest” to withdraw your money. They charge a flat fee that can be up to $5.00 or more depending on the Bank.  I converted the fee to a percentage to make it easier to compare Apples-to-Apples (and hopefully make a bigger impression).

Operation Prime Red: Shipping Your Projects

Shipping. A phrase coined by the marketing guru, Seth Godin, and recently exercised by a good friend of mine, Randy Redhead a.k.a. Prime Red.

He recently released his new project “Letters from the Architect” on Bandcamp, and today, officially launched the music video for his single “Billion Dollar Business!”

Shipping is never easy and Prime Red can testify to this. The project had been stewing in his brain for months and during production, he came across numerous frustrations and moments of fatigue. Never did I hear him mention, “letting this one go”.

As you can see from the support of friends, family, trusted colleagues, and new fans — Prime Red has inspired and motivated so many people around him, inspiring what they have coined #theresistance. Music and sound that stays true to the artist and that resists the duplication, simplification, and vapid creations found in music today.

Big Ups! to the man who ships his project, shares his passions, and lights the path of those around him, thereby lighting his own!

Check out Randy Redhead and his projects at:

Bandcamp: Primered.Bandcamp.com
&
Twitter: @PrimelabsQW

Billion Dollar Business [Official Video]