The ATM: How to Save Money When You’re Trying to Save Money

Posted: May 26th, 2009 | Author: Leora Schachter | Filed under: Author - Leora Schachter, Money | Tags: , , , , , , , , , , , , | 1 Comment »

Money may not grow on trees, but does come on the roll.

Money may not grow on trees, but does come on the roll.


Growing up, I thought banks were meant to hold onto the checks that you received from your aunts and grandmothers on your birthday. As I got a little older, I started to understand that the banks used your money to make loans to other people. And to thank you for using your money, they paid you a little bit each month – something called interest, currently ranging from .25 to 1.5%. (Back in the day, it was more like 2 to 4%, but since the banks made loans to people that could never pay them back, we’re getting less and less.)

The whole point was that the nice people at the bank were there to help you save money. I think that’s why ATM fees infuriate me. And what really gets my blood boiling are the “double” withdrawal fees – not only does the stranger bank (the one who is not your own) charge you a fee to take money out of their ATM, but then you get charged by your own bank too! It means that if you want to take out $100, you’ll end up spending between $2 and $4 per withdrawal. In other words, you’re paying 2 to 4% of your own money TO USE YOUR OWN MONEY! And if you’re keeping track of the math, that’s a whole lot more than the little interest they’re paying you to hold onto your money. Read the rest of this entry »