Author Topic: Savings account conundrum  (Read 4582 times)

Mr. Green

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Savings account conundrum
« on: May 27, 2015, 03:00:04 PM »
My father is on disability and requires someone else to manage his finances associated with that. He occasionally sells things on eBay for some extra grocery money. Paypal is the heavily used medium there, and he has a Paypal account. Paypal requires him to have a bank account linked. Currently he has a savings account linked but the bank is changing their policy and will now charge a fee for balances under $100. He won't be able to keep the account because he doesn't have that much. Odds are the savings account will never see more than $30-40 in it at any one time. We've been trying to find another bank that will allow him to open a savings account that doesn't have fees or minimums. So far, the only banks I can find that fit the bill are internet banks and that solution doesn't work because his financial track record prior to disability is about as bad at they get, No bank will give him a checking account anymore, which I think is what he would have to have to use an internet bank.

Does anyone have any suggestions for banks that have a savings account that either doesn't have fees or have a really low minimum balance like $25?
RE in June 2016. Wife is joining me at the end of June!

forummm

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Re: Savings account conundrum
« Reply #1 on: May 27, 2015, 03:05:12 PM »
Sometimes fees are waived if you use direct deposit.

MDM

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Re: Savings account conundrum
« Reply #2 on: May 27, 2015, 03:10:56 PM »
...requires someone else to manage his finances associated with that.

Does anyone have any suggestions for banks that have a savings account that either doesn't have fees or have a really low minimum balance like $25?
Can you front an initial $100 and handle the transfers out so the balance stays above $100?

May depend on how much of his finances you are managing....

Mr. Green

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Re: Savings account conundrum
« Reply #3 on: May 27, 2015, 03:27:13 PM »
...requires someone else to manage his finances associated with that.

Does anyone have any suggestions for banks that have a savings account that either doesn't have fees or have a really low minimum balance like $25?
Can you front an initial $100 and handle the transfers out so the balance stays above $100?

May depend on how much of his finances you are managing....
It's likely over time that the balance would be drawn under $100. One of the reasons why we wanted a savings account is that if he tries to make a debit for more than is in the account, the bank will decline the charge rather than accepting it and charging an overdraft fee. Even declining the overdraft protection didn't help him prior to disability because everyone passes transaction as ACH payments where "they can't stop them" even if someone has declined overdraft protection. I really don't want to periodically have to add money to make sure the account stays above $100 all the time because it's random when he gets in a tight spot and doesn't always remember everything to know he's in a tight spot until he's in the jackpot.
RE in June 2016. Wife is joining me at the end of June!

Mr. Green

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Re: Savings account conundrum
« Reply #4 on: May 27, 2015, 03:29:48 PM »
Sometimes fees are waived if you use direct deposit.
Unfortunately, he doesn't have any steady income to where he can reliably set up a direct deposit. And money can't be transferred from his managed account to another account because the managed account is in another state, which creates some situation where transfers can't be done between the two accounts.
RE in June 2016. Wife is joining me at the end of June!

forummm

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Re: Savings account conundrum
« Reply #5 on: May 27, 2015, 03:30:55 PM »
What about a pre-paid card? I guess they have fees though.

Mr. Green

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Re: Savings account conundrum
« Reply #6 on: May 27, 2015, 03:35:27 PM »
What about a pre-paid card? I guess they have fees though.
The issue is Paypal wants a bank account to link to. No bank account, No Paypal. For selling things anyway. That's what we're hoping to solve.
RE in June 2016. Wife is joining me at the end of June!

letired

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Re: Savings account conundrum
« Reply #7 on: May 27, 2015, 03:47:51 PM »
I don't know how useful this is, but I also sell sometimes on EBay, and I don't have it hooked up to a bank account.  It does know about one of my credit cards. Granted my account is pretty old, but I'd he needs a way of getting the money out of Paypal, I think they have debit cards? But I've never looked into it so they might want a bank account for that too.

It might be worth logging in to Paypal with him if you haven't already. They do a good job of making things look required, but if you keep scrolling/reading the fine print, it isn't actually required.

Good luck!

forummm

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Re: Savings account conundrum
« Reply #8 on: May 27, 2015, 03:52:01 PM »
Oh, PayPal might work. They used to have a debit card for it. And you can put money in for him whenever from your bank account. It might be free.

forummm

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mandy_2002

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Re: Savings account conundrum
« Reply #10 on: May 27, 2015, 03:58:26 PM »
I have a savings account through a credit union with a $5 minimum and no requirements.  Check out the CU's in your area that he is eligible for.  They are extremely helpful, and very personal.  Most have one way or another of being eligible. (Mine is associated with my company, but allows any contract company doing business with us, along with several "related" businesses, like the restaurants that many people frequent, to also be eligible.)  Some are geographical, and accept working and church membership in their area as being in their geography, even if you don't live there.
Retired:  April 2016
Currently:  Serving in the Peace Corps
Sure this is technically a job (the toughest you'll ever love, I hear), but I went from 60-90 hrs a week to living in a foreign country on Uncle Sam's dime teaching English ~20 hrs/week when schools in session, so I'll take it.
What's next?  Spain!  Vietnam!  Several countries in South America!  I may have a problem.

starguru

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Savings account conundrum
« Reply #11 on: May 29, 2015, 07:46:55 AM »
Fidelity has a checking account that as far as I know is totally free.  I think it's called MySmart checking.

Edit:  yeah looks to be no fees no minimum.

https://www.fidelity.com/cash-management/fidelity-cash-management-account/overview

SomedayStache

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Re: Savings account conundrum
« Reply #12 on: May 29, 2015, 07:52:43 AM »
Would something like the Target Prepaid card work?  (I honestly don't know).  I know there is a routing/checking number associated with it, and it can hold funds like a bank account.  The only fee is the initial amount to purchase the card. 

letired

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Re: Savings account conundrum
« Reply #13 on: May 31, 2015, 11:24:48 PM »
Fidelity has a checking account that as far as I know is totally free.  I think it's called MySmart checking.

Edit:  yeah looks to be no fees no minimum.

https://www.fidelity.com/cash-management/fidelity-cash-management-account/overview

I use this account as my main checking account, and it's worked really well for me. The ATM reimbursement thing is probably less of a big deal for ppl who don't change cities every few years the way I was, but it really helped me out for a while, and it's still great to be able to walk up to just about any ATM and get what I need without worrying about fees.

Shane

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Re: Savings account conundrum
« Reply #14 on: June 01, 2015, 01:04:40 AM »
https://home.capitalone360.com/online-savings-account?external_id=360b_SAV_SS_Static_Z_T

A Capital One 360 savings account doesn't have any minimum balance and it can be linked to your father's PayPal account.

PayPal also offers the option of mailing you a check for a $1.50 fee. Then he wouldn't need to worry about linking a bank account if that's problematic for him...

drawn

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Re: Savings account conundrum
« Reply #15 on: June 01, 2015, 08:58:07 PM »
Check out Discover's Cashback Checking Account: https://www.discover.com/online-banking/checking/

No monthly fees, no balance/activity requirements and no ATM fees. Discover also has a $50 sign-up bonus going on through 6/30/2015.