Personal Development for Smart People Forums - View Single Post - Saving money? Rounding your bank card purhcases

Doku · 12-05-2006, 01:48 PM

I think that it's a great idea for the banks.

First off, it deposits into a savings account at their own bank... so it forces you to invest more money into their bank, which they make money on. It is very hard for banks to get people to open accounts with them. This is a way to easily get hundreds or thousands of new accounts opened.
Secondly, depending on how they handle it at the credit card level, stores are charged a processing fee which is a certain percentage of the transaction... The stores may scream bloody murder, but the banks might be charging them the processing fee on the extra "rounded up" money as well.

12-05-2006, 01:48 PM	#4 (permalink)
Doku Senior Member Join Date: Nov 2006 Location: Central MD Posts: 385	I think that it's a great idea for the banks. First off, it deposits into a savings account at their own bank... so it forces you to invest more money into their bank, which they make money on. It is very hard for banks to get people to open accounts with them. This is a way to easily get hundreds or thousands of new accounts opened. Secondly, depending on how they handle it at the credit card level, stores are charged a processing fee which is a certain percentage of the transaction... The stores may scream bloody murder, but the banks might be charging them the processing fee on the extra "rounded up" money as well.