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7 Banking Services That Can Save Retirees Money
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Long gone are the days in which you need to visit a branch to do your banking. Today, banks offer an array of services that allow consumers to make deposits, transfers and payments whenever and wherever they want.
However, some retirees have been slow to adopt this new way of banking. Paul Appleton, executive vice president of products and payments for Bank of the West, says his institution has found retirees are less likely than non-retirees to use online banking and billing. They are also significantly less likely to sign up for mobile banking or make mobile bank deposits. “[It’s] basic access to information that they aren’t taking advantage of,” Appleton says.
Missing out on the following seven banking services could be costing retirees both time and money.
Direct deposit. Thanks to a 2010 Treasury Department rule, most retirees already get their Social Security benefits directly deposited into their bank account. However, seniors may be missing other opportunities to make use of this convenient banking feature. For example, opting for direct deposit for tax refunds means getting the money more quickly. Direct deposit is also a handy feature for snowbirds who may be living part of the year away from the branches of their primary bank
Overdraft protection. Retirees living on a tight budget may find overdraft protection valuable. Even those who are diligent in tracking their money can get tripped up by bank policies about how transactions are processed. “It can get pretty confusing with the way different banks process the credits and debits,” says Jeremy Shipp, managing partner with O’Dell, Winkfield, Roseman and Shipp in Richmond, Virginia. Some institutions may process pending charges before crediting a deposit. That can lead to overdraft fees and those charges can add up quickly..
Online bill pay. Many retirees still write checks to pay their monthly bills. Others insist on making payments in person. Appleton relates the story of one senior customer he met in Denver. “She brings a Bank of the West check to a Bank of the West branch and pays her Bank of the West credit card,” Appleton says. “She knows when she hands over that check, it’s been paid.
Overdraft protection. Retirees living on a tight budget may find overdraft protection valuable. Even those who are diligent in tracking their money can get tripped up by bank policies about how transactions are processed. “It can get pretty confusing with the way different banks process the credits and debits,” says Jeremy Shipp, managing partner with O’Dell, Winkfield, Roseman and Shipp in Richmond, Virginia. Some institutions may process pending charges before crediting a deposit. That can lead to overdraft fees and those charges can add up quickly..
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