Coming Wal - Mart Bank

[gadgetMe]

Wal-Mart is teaming up with green dot to run a non-traditional Bank at the end of October.

I will keep following this, it may be a great alternative for full timers.

Link to NY Times story

 

[Zil]

Real banks have insurance that protects your deposit. These cards do not protect your money. This will not be called a bank in any form.

 

[gadgetMe]

Real banks have insurance that protects your deposit.

No Bank has insurance to protect your deposit, once you put YOUR money in the so called bank it is their money, and you are now a creditor if the bank fails ... look up "bail in policies" & capitol controls.

A credit union is not called a bank, but, gives you the same services.

 

[Zil]

No, You should look up FDIC.

 

[caseyc]

FDIC. Google it.

 

[compassrose]

I have a WalMart money card. It is a VISA Debit card. I have my paycheck direct deposited to my "checking" account. If you "load" at least $1000 in a month, you do not pay the next month's fee. My card is protected just like any VISA credit card. I know this from actual experience. This thing is cheaper than BOA. It works for me. Whether it will work for others, I don't know. I don't leave money in the account.

 

[light trip]

The news story I heard today states this will be banking service outside of the money card service. WalMart is applying for a FDIC Charter for the banking service.

 

[gadgetMe]

No, You should look up FDIC.

OK, I did ... Just trying to inform folks
The FDIC Is Way Beyond Broke Click link for full story .. from November of 09..


The Federal Deposit Insurance Corporation announced this week that the insurance fund that covers more than $4.5 trillion in deposits was not only depleted but has a negative balance of $8.2 billion according to the Wall Street Journal. The FDIC is now an insurance fund with no money of its own. The FDIC says it still has $23.3 billion to cover failing banks. It also has a $500 billion line of credit at the U.S. Treasury. FDIC Chairman Sheila Bair said in early September, “…We can tap up to $500 billion in a line of credit if we needed to, I can’t imagine that would ever be necessary…” Well, now it may be necessary because The FDIC said this week that 552 financial institutions were on the government’s problem list at the end of September. That’s 137 more “problem” banks added to the list in just three months. These banks have combined assets of $345.9 billion. The “problem list” will surely get longer as we go into 2010! Some experts say the real “problem list” of bad banks is more than 1000. Chairman Bair surely knew she would have to use the $500 billion line of credit when she asked for it from Congress. While we’re on the topic of bank losses, the head if the IMF, Dominique Strauss-Kahn, said this week, “It’s possible that 50 percent are still hidden in their balance sheets…” We don’t even really know how bad this will get, but it will get very bad! I wrote about the grim banking trouble facing America in a September post called “The Banks Are (Still) In Trouble.”

 

[caseyc]

America has been broke for a long time now.

 

[gadgetMe]

That is for sure ..
I just wonder how long this can go on..
So far, they have used all of their tools to the max, along with very effective propaganda.

 

[Optimistic Paranoid]

I have a WalMart money card. It is a VISA Debit card. I have my paycheck direct deposited to my "checking" account. If you "load" at least $1000 in a month, you do not pay the next month's fee. My card is protected just like any VISA credit card. I know this from actual experience. This thing is cheaper than BOA. It works for me. Whether it will work for others, I don't know. I don't leave money in the account.

My understanding is that debit cards are NOT as safe as credit cards. With a credit card, Federal Consumer Protection Laws limit your liability for fraudulent use to $50. With a debit card, your liability limit is $500. Plus with a debit card, the bank does not refund your money until AFTER a full investigation - which can take weeks. Kind of tough on those of us living paycheck to paycheck.

If you've got the willpower to avoid going into debt, a credit card is a lot safer.

You mentioned "actual experience". If you'd care to elaborate, I'd love to hear about it.

Regards
John

 

[ccbreder]

Yes some banks are in trouble. Mostly the ones that are investment banks, such as BoA. But even if the FDIC fund is depleted our deposits are protected. FDIC just borrows if they have to pay depositors of a failed bank.
You will find wally-bank will require all the identity and address location information as any bank. Advantages? Maybe easy to find banking tellers?
I still prefer Ally Bank with no fees at any ATM through out the USA. Free transfers to any one or any other bank. Free checks and free debit card. Free bill-pay. My card does not work if there is not enough money in my account, so no over draws. I just can't deposit cash. I don't deal with very much cash.

 

[light trip]

I agree ccbreder. I opened an Ally account a month or so ago and have been very happy. When I got the debit card I checked the balance at an ATM inside a retail store, something I would never do with my old bank. Just want to see if any fees would be incurred. Nothing, worked perfect.

There's one more advantage to Ally over WalMart. The lines at WalMart are crazy long to get any kind of service. And at least where I am, the people that work there seem to go as slow as they possibly can.

Optimistic Paranoid - I just had someone tell me to use your debit card as a credit because it provided more protection. Have you heard this? I remember hearing this years ago, but had forgotten about it, but seems to make sense.

With regard to the U.S. using all it's tools to max.... (my 2 cents ;-) Paraphrasing, but I think it was Winston Churchill that said you can always count on the Americans to do the right thing,,, after they'd tried everything else. I agree with gadgetMe, but we have a long ride ahead of us, take a deep breath.... maybe buy some gold. I've heard people say China owns the U.S. because we owe them so much money. But I like what I heard someone say years ago. When you owe the bank $100,000.00 the bank owns you. When you owe the bank $100,000,000.00 you own the bank.

 

[ccbreder]

The national debt has no meaning whatsoever except for political speech-making. I think my debit card is protected at $50 loss unless I don't call in less than 24 hours. if I call, no loss.