Money-related things that may become obsolete

I love paying with credit cards and also online, even my brokerage and IRA, would hate going back to checks and cash and physically going to banks. But, my HOA charges me $4 for an online payment, so I mail them a check four times a year (they charge quarterly). I also started an online savings account with Discover, want to keep it separate from my other savings account and use it for an emergency fund (they pay higher interest).

Do you, and other posters, think the online banking is safe, since the emergency fund will eventually top $5000. I'm a little leery about it, I trust my physical bank more, but I also have a credit card with Discover.
I do all my banking online, but the accounts are actually with brick and mortar banks.

I think online banking is safe, at least as safe as writing checks. I've been doing it at least 15 years now with no problems.

By online banking, do you mean having an account with a bank that is ONLY online, or do you mean doing all your banking online?
 

Liberty

Senior Member
Location
Texas
I love paying with credit cards and also online, even my brokerage and IRA, would hate going back to checks and cash and physically going to banks. But, my HOA charges me $4 for an online payment, so I mail them a check four times a year (they charge quarterly). I also started an online savings account with Discover, want to keep it separate from my other savings account and use it for an emergency fund (they pay higher interest).

Do you, and other posters, think the online banking is safe, since the emergency fund will eventually top $5000. I'm a little leery about it, I trust my physical bank more, but I also have a credit card with Discover.
Personally I do think credit cards and your "sock" are the way to go for emergency funds. Banks close on the weekends and online facilities are , well, online. Almost everyplace takes credit cards. Normally you can get back up to 5% for using a favorate card, like Amazon. We write checks for our home maintenance, like mowing or repair, but otherwise - nope. Haven't used an ATM machine for decades.

Do think I'd be tempted though if a highly accredited online bank, like Chase, etc., offered a higher CD rate than my local bank did. We tend to stick with our local bank for "interest bearing" accounts. Right now, our local bank pays the highest CD rates - higher than the on line. They realize the need to compete with them.
 

Catlady

Senior Member
Location
Southern AZ
@Butterfly - Yeah, I meant an online bank only. I do all my banking online with my local bank, but wanted a savings just for an emergency fund, to keep it separate from my other savings. @Aunt Bea said Discover should be safe if FIDC insured, and it is and I also have a credit card with them. And they pay 1.70%, my credit union pays less than 1%.

@Liberty - Initially I thought of using one of my credit cards as an emergency fund, I have one with $25K credit line and paid off in full each month. But the problem with that is if I need to use it I will then have to repay it and I have a small income with very low extra left over money to spend, so saving the money slowly each month is best for my situation. I won't have to repay the bank emergency fund if I can't.
 

Liberty

Senior Member
Location
Texas
@Butterfly - Yeah, I meant an online bank only. I do all my banking online with my local bank, but wanted a savings just for an emergency fund, to keep it separate from my other savings. @Aunt Bea said Discover should be safe if FIDC insured, and it is and I also have a credit card with them. And they pay 1.70%, my credit union pays less than 1%.

@Liberty - Initially I thought of using one of my credit cards as an emergency fund, I have one with $25K credit line and paid off in full each month. But the problem with that is if I need to use it I will then have to repay it and I have a small income with very low extra left over money to spend, so saving the money slowly each month is best for my situation. I won't have to repay the bank emergency fund if I can't.
So when you are talking about an "emergency fund" you mean an EMERGENCY FUND...lol. What type of emergencies do you think you might need that amount of funds for so quickly?
 

Catlady

Senior Member
Location
Southern AZ
So when you are talking about an "emergency fund" you mean an EMERGENCY FUND...lol. What type of emergencies do you think you might need that amount of funds for so quickly?
Well, my cookie-cutter house was built for me 14 years ago, and that's when appliances and other stuff start to need to be replaced. A new AC is a minimum of $5000 to replace, appliances are getting more and more expensive etc. My gas water heater got a leak a couple of years back and that cost me $950 for a new one. I could pay with the credit card, but then would need to pay it off and I don't have a lot of income leftover after my regular expenses. So, when I have a little extra money leftover I'd like to put in that fund for when things stop working so that I can stop worrying.
 

Liberty

Senior Member
Location
Texas
I see what you mean, Catlady... one of the neat things is to use the credit card to buy something and then pay it off with no interest, getting the rebate 2-5% the card might offer.

Hopefully, you won't have a flock of big stuff hitting you at one time. You are so right, generally replacing big stuff is more expensive now days. Makes me keep my old appliances as long as they keep working!
 

Catlady

Senior Member
Location
Southern AZ
I see what you mean, Catlady... one of the neat things is to use the credit card to buy something and then pay it off with no interest, getting the rebate 2-5% the card might offer.

Hopefully, you won't have a flock of big stuff hitting you at one time. You are so right, generally replacing big stuff is more expensive now days. Makes me keep my old appliances as long as they keep working!
Me, too, and I LIKE my old appliances. My electric stove only has two small burners working, the two big ones died a couple of years ago. I like my Whirlpool stove and don't want to buy a new one but fixing it will cost about $250, almost half of a new decent stove. So far I've been making do with the two small burners.
 

Ken N Tx

Well-known Member
Location
Texas
I like my Whirlpool stove and don't want to buy a new one but fixing it will cost about $250, almost half of a new decent stove. So far I've been making do with the two small burners.
Is it a smooth top range?? Here is a video that might help..
.
 

StarSong

Well-known Member
My gas double wall oven and range top are 31 years old, and were reinstalled during our complete kitchen remodel a few years ago. Not only was I shocked at what it would cost to replace them, I found that getting a new gas double wall oven was a virtual (if not actual) impossibility. They're just not available anymore.

Our stovetop's igniter hasn't worked in decades. It went on the fritz within a couple of years so we got it fixed. Stopped working again less than a year later and kept making a clicking noise. Hubby unplugged the electric but left the gas line alone. We've lit it with matches or stick lighters ever since. I know so many people in the same boat- it seems stovetop electronic igniters just don't last very long.

If any of the burners stopped working I'd replace the stove top, but it works well and looks like new. The oven works great. DH has replaced the oven's igniter every ten years or so, otherwise it's been trouble-free. Same goes with our gas dryer.

So glad to be married to someone who's handy. What he doesn't already know how to fix, he learns from the gods at YouTube.
 

Catlady

Senior Member
Location
Southern AZ
Is it a smooth top range?? Here is a video that might help..
.
No, I hate the smooth ones, mine has the burners. I don't trust myself with anything electric, so would not attempt doing it myself. The kit to replace all four burners is about $70 plus shipping. Seems that all 4 need to be replaced for some reason. I'm dragging my feet because I can still get by with the two small burners, but someday I'll end up with only one and that is not okay. LOL I'm thinking, I'm thinking.
 

Liberty

Senior Member
Location
Texas
Me, too, and I LIKE my old appliances. My electric stove only has two small burners working, the two big ones died a couple of years ago. I like my Whirlpool stove and don't want to buy a new one but fixing it will cost about $250, almost half of a new decent stove. So far I've been making do with the two small burners.
Probably two small burners and a slow cooker is all you really would normally need anyway! I've got an inexpensive countertop oven that I've used to do "test kitchen bench work" in our business for years. We sold the biz 3 years ago and I still use it a lot - in place of heating up one of the big ovens.

Think its all media hype to have some of these expensive appliances and totally upgraded kitchens. I've known folks that had 40 grand kitchens put in and don't even know what the room is for ...take out is their middle name...lol.
 

OneEyedDiva

Senior Member
Location
Nrw Jersey
I love paying with credit cards and also online, even my brokerage and IRA, would hate going back to checks and cash and physically going to banks. But, my HOA charges me $4 for an online payment, so I mail them a check four times a year (they charge quarterly). I also started an online savings account with Discover, want to keep it separate from my other savings account and use it for an emergency fund (they pay higher interest).

Do you, and other posters, think the online banking is safe, since the emergency fund will eventually top $5000. I'm a little leery about it, I trust my physical bank more, but I also have a credit card with Discover.
Catlady, it took me awhile to trust banking and dealing with my brokerages online. One benefit is that I can login to my accounts anytime and see what's going on. I've set alerts so that any suspicious activity will be emailed and/or texted to me immediately. Also, money being moved between brokerage and banks or vice versa can only take place between accounts that have already been verified by their system. Verification codes are via email and I have a special email for financial matters. In addition, I've enabled two factor identification for my accounts. One brokerage uses a system that really fascinates me. It uses the VIP app which generates a set of numbers every 30 seconds. In order to login after entering ID and password, that set of numbers has to be entered before the 30 seconds is up. The Mac ID number for the device on which the app is downloaded must be reported to the brokerage before it will work and a set of numbers from any other device with that app will not be recognized.

Banks now take responsibility for any unauthorized transactions they allowed, at least they claim to. Also the FDIC insures your bank (not brokerage) accounts for up to $250,000. It seems like you and I have the same money style.
 

OneEyedDiva

Senior Member
Location
Nrw Jersey
It seems like the less mail I get the more issues I have with it being delivered to my mailbox.

I signed up for USPS Informed Delivery after terry123 mentioned it in another thread several months ago.


It does help to let me know what should be arriving.

As far as online banking accounts being safe, if they are FDIC insured the only issue should be accessing them in the event of an emergency.

I spread my emergency fund around and keep a little in the sugar bowl, a little in the bank and a little in my brokerage MM account.

Living in an apartment and having a guaranteed retirement income has reduced my need for a large emergency fund similar to the ones recommended for younger working folks that may face a period of unemployment.
I have money spread all around too Aunt Bea. Don't believe in keeping all my eggs in one basket, though I did consolidate a bit last year so when I kick it, my son won't have so many accounts to navigate. I also use informed delivery...pretty cool.
 

Catlady

Senior Member
Location
Southern AZ
Verification codes are via email and I have a special email for financial matters. In addition, I've enabled two factor identification for my accounts. One brokerage uses a system that really fascinates me. It uses the VIP app which generates a set of numbers every 30 seconds. In order to login after entering ID and password, that set of numbers has to be entered before the 30 seconds is up. The Mac ID number for the device on which the app is downloaded must be reported to the brokerage before it will work and a set of numbers from any other device with that app will not be recognized.

Banks now take responsibility for any unauthorized transactions they allowed, at least they claim to. Also the FDIC insures your bank (not brokerage) accounts for up to $250,000. It seems like you and I have the same money style.
Hmm, that all sounds like a lot of work. I'll pass.

I figured that I've had Discover for a long time, I think it's reputable, so I deposited $70 the first time to test it and will be adding to it until I reach my goal of $5000 or more (that's the minimum for a new AC, can't live without AC in hot Tucson). I thought of putting the money in the brokerage account, but I know myself, I'll be tempted to use the money to buy stocks. Better have the emergency fund by itself and available when I need it.
 
So when you are talking about an "emergency fund" you mean an EMERGENCY FUND...lol. What type of emergencies do you think you might need that amount of funds for so quickly?
Big ones for me have included:

My dad died while we were stationed in Germany and I had to get home in a hurry. Good thing I had a credit card.

Refrigerator/freezer died on a weekend in July. The fixer guy declared it dead. I had to replace it right away or lose all the food in the fridge and freezer. I got online, found the one I wanted and arranged to have it delivered the next morning and the corpse of the old one carried off. Glad I had a credit card.

Pipes burst under my house to the tune of about $5,000 -$6,000. City turned off the water so no more would pool under the house. This is something you need to get fixed NOW. Good thing I had that card.

After an emergency, I figure out how to pay off the bill, one, two, three payments, move funds around, etc.
 

Catlady

Senior Member
Location
Southern AZ
After an emergency, I figure out how to pay off the bill, one, two, three payments, move funds around, etc.
Yes, that is what I want to avoid by having an emergency savings. Of course, if the bill is higher than my emergency savings, I plan on making a few payments from my savings while I have time to sell stocks to pay off the difference. I just can't afford the extra monthly credit card payments since I seldom have much money left over after paying my monthly bills.
 

OneEyedDiva

Senior Member
Location
Nrw Jersey
Hmm, that all sounds like a lot of work. I'll pass.

I figured that I've had Discover for a long time, I think it's reputable, so I deposited $70 the first time to test it and will be adding to it until I reach my goal of $5000 or more (that's the minimum for a new AC, can't live without AC in hot Tucson). I thought of putting the money in the brokerage account, but I know myself, I'll be tempted to use the money to buy stocks. Better have the emergency fund by itself and available when I need it.
Actually it's not a lot of work Catlady. It's less complicated than it sounds. The device gets preauthorized one time...then it's good to go. It's a matter of just opening the app on my phone when I'm ready to log in. It actually takes only 8 - 10 seconds to enter the code on the screen. With the amount I have invested, the extra 10 seconds is worth it. The methods (for other accounts) involve receiving a text with the codes. Again, just a matter of opening up my message app.

You are wise to establish a separate emergency fund and not allow yourself to be tempted. I transferred some of the money from the bank I've dealt with for decades into Citibank because of an offer which I found in a pile meant for shredding. Deposit the required amount (of "new money") into a checking-savings account, establish paperless statements and receive $425 if the accounts stay open for at least 90 days. I've had a Citi credit card for at least 12 years, so I felt comfortable, like you do with Discover.
 

fmdog44

Senior Member
Location
Houston, Texas
With 1%-3% cash back on credit card purchases why use cash? I pay all bills with CC's and find myself rarely putting out cash anymore. I checked the number of cash withdrawals last year and had only six. Adding up the annual charges X 1-3% it could be a nice piece of $$$$. Discover pays 5% on certain items.
 

Liberty

Senior Member
Location
Texas
With 1%-3% cash back on credit card purchases why use cash? I pay all bills with CC's and find myself rarely putting out cash anymore. I checked the number of cash withdrawals last year and had only six. Adding up the annual charges X 1-3% it could be a nice piece of $$$$. Discover pays 5% on certain items.
Absolutely, that money can really add up. Call it a little extra bonus that adds to the savings pot!
 

Uptosnuff

Member
I don't think we are at the point of a totally cashless society quite yet. As a matter of fact, there is a whole cash-paying underground out there if you know where to look.

We have had several tenants that paid their rent in cash. Not because they were drug dealers, but because they were wait staff at the local bars and restaurants. I am surprised at how many don't seem to use their checking or saving accounts. There are tons of local restaurants that are cash or check only and there seem to be more of them popping up every day.

Even local businesses prefer the cash if you are willing to offer it. And they are willing to give you a discount if you do. I have never had a business turn down cash. I still write checks every month to pay bills from vendors I don't have listed in my online checking account. I live in an area with our own water association and each month I have to take a water meter reading and write a check for it.

I don't see how people get along without writing at least a few checks, really. The cashless society might be around the corner, but it is not here yet. I hope I never see it. Way too easy for the powers that be to track every little thing about you.
 

StarSong

Well-known Member
I don't think we are at the point of a totally cashless society quite yet. As a matter of fact, there is a whole cash-paying underground out there if you know where to look.

We have had several tenants that paid their rent in cash. Not because they were drug dealers, but because they were wait staff at the local bars and restaurants. I am surprised at how many don't seem to use their checking or saving accounts. There are tons of local restaurants that are cash or check only and there seem to be more of them popping up every day.

Even local businesses prefer the cash if you are willing to offer it. And they are willing to give you a discount if you do. I have never had a business turn down cash. I still write checks every month to pay bills from vendors I don't have listed in my online checking account. I live in an area with our own water association and each month I have to take a water meter reading and write a check for it.

I don't see how people get along without writing at least a few checks, really. The cashless society might be around the corner, but it is not here yet. I hope I never see it. Way too easy for the powers that be to track every little thing about you.
Wow, I could have written this post except that I don't have any tenants.

Our business offered cash discounts. CC companies bar merchants from upcharging for CC use, but they couldn't prevent us from discounting the 3% (at least) that it cost us to process their cards. Toward the end we accepted cash, MC or Visa only. No checks or debit cards. We never accepted Discover or AmEx because their fees were too high.
 

Uptosnuff

Member
@StarSong The businesses that take cash or check only, or at least deal in cash are usually "mom and pop" establishments. I think they realized just how much the credit card charges were eating into their profit margins. What they have done, in effect, is put the charges on their customer's back when they say "we accept cash only, but there's an ATM right over there". Of course when you have to use their atm there is a charge for that.

So, while I am all for places taking cash only, as a customer I don't particularly like the charge shifting.
 

StarSong

Well-known Member
@StarSong The businesses that take cash or check only, or at least deal in cash are usually "mom and pop" establishments. I think they realized just how much the credit card charges were eating into their profit margins. What they have done, in effect, is put the charges on their customer's back when they say "we accept cash only, but there's an ATM right over there". Of course when you have to use their atm there is a charge for that.

So, while I am all for places taking cash only, as a customer I don't particularly like the charge shifting.
We owned a Mom & Pop uniform company. The retail-direct portion of our business had a restricted customer base that had to purchase from us (school uniforms). Our payment policy was well publicized, and customers had the option to use our website and PayPal if they needed to use a debit card, Discover or AmEx.
 


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