Consumers are smart. Some figure, if they put their money in savings, earning a dividend or interest, keep the checking account at zero, and link the checking to the savings for overdraft protection, then they have the equivalent of a checking account that pays. Smart as that is, it keeps the Fed from doing its job.
To be “unbanked” means not having an account at a financial institution. In America today, millions are unbanked and the reasons are many. I will disclose to readers that, in general, I cannot support being unbanked for a lifetime; I know of no other legal and ethical way for the average “Joe” to build up assets without having someplace to store and grow cash. Also, my father was a banker and I have worked in the credit union segment of the financial services industry my whole career. Since a teen, I have never been unbanked. Should you ever be?
I thought they were gone but they’re back. Auto companies are again offering zero percent interest on certain vehicles. Sounds great on the surface. You know that if you finance a vehicle you will pay more in total than if you negotiated for a cash sale (don’t roll your eyes, buying with cash is possible and, ProfiTuit members will learn the techniques for that at our financial literacy and ProfiTuit Strategy sessions). When you finance, you pay for the vehicle and to rent the money.
