What should I tell my parents I spend money on in college?
Okay so I only came to college with like $600. It's been a month and a couple days and I've spent about $250, mostly buying weed and paraphernalia (please don't lecture me on the "dangers" of smoking weed). I'm going to budget my money better to last me until Christmas break, and when I get home I'm going to ask my parents for money. I don't want to tell them that I've spent all my money on weed, so what should I tell them I've been buying? It can't be like CDs or clothes or something because then they would ask me why I don't have them with me.
Do banks benefit or lose when you spend your money?
It depends on the bank's strategy for making money. Are they a transaction-focused bank that makes it easy for you to spend? They earn money when you spend through card fees, bounced checks, NSF (insufficient funds) fees, etc. They make more money when you spend than when you save. Are they a bank that offers you a rather high interest rate for your savings account? Generally if the bank is willing to pay you to do something, there's an upside to it; they aren't offering you interest out of the kindness of their hearts. ^_^ Alternatively, it might be a strategy to get people to move more of their relationships over to the bank, in which case they lose on the specific transaction and gain on other things (such as eventually earning your mortgage business etc.)Is the prevailing interest rate situation high or low? That affects whether or not banks earn/lose through having high deposits, whether or not the banks make it part of their strategy. Some banks make their money through overnight loans to other banks (look up Interbank lending market.) There are a lot of other factors (how are you spending your money, through debit cards or credit cards, or loans through the bank, etc?) and it even includes monetizing your information eg. selling contact lists or anonimized transactional trend/analytics to third parties such as credit card issuers or insurance agencies, etc. It really does depend.
How strict are banks with what you spend with loan money?
It depends on the type of loan you received.With some loans, financial institutions are very strict in controlling how you spend the loan proceeds; for other loans, they’re very permissive.Debt Consolidation LoanLet’s say you have a lot of debt with high interest rates. You visit your credit union or bank, and they suggest that you consolidate those debts into one “debt consolidation” loan. This can lower your monthly payments and save you money in interest.But when the loan is approved, the funds will be disbursed directly to your former creditors. Some institutions will require you to close some revolving lines and credit cards as a condition of the loan.Car LoanLet’s say you want a car loan. The lending institution will again control the disbursement process and will send the loan funds directly to the dealer or other seller of the vehicle. They may allow you to add tax, license and an extended warranty to the loan, but again, those add-ons are paid to the dealer.There are some “auto equity” loans that some banks offer. These banks will take the ownership of your vehicle as collateral and lend you a portion of its value. But you can spend the loan dollars any way you want. The amount of the loan will be significantly less than the value of the vehicle.MortgageMortgage disbursements are more tightly controlled than car loan disbursements.Home equity loan/linesBanks want to ensure that your property more than covers the money they lend to you, but otherwise don’t care what you use it for. Their advertising will allude to the potential to deduct home equity interest from your taxes, but they will cover themselves by stating “talk to your tax advisor or attorney.” The do this because not all uses of home equity loans are within the IRS’s guidelines for this deduction.Personal loans, signature loans, credit cardsAs these loans are usually only given to persons with a proven track record of handling credit well, banks don’t care what you spend the money on. There are some exceptions to this. For example, banks are required to attempt to block some types credit card transactions (e.g., online gambling).
What happens if I spend someone else's money that was put into my account?
I have just discovered that an amount of money has been deposited regularly into my account for the last few months. I do not check my statements, I just spend whatever I have in there and have had no idea that I had extra money. I have now been informed that the money had been put in accidently - it was supposed to go into someone else's account but the person putting it in had entered my account number instead - and that I am liable for it's return and that it is being considered as theft, however, as I was not aware that it was not my money I don't think that I should be accused of stealing it because I never knew it wasn't supposed to be there. Do you think that the bank should have realised that the account name and number did not match and it should be the bank that returns the money to the person who should have been getting it? Or is it the fault of the person who put the wrong account number in? What will happen if I am made to pay it back, would I be able to pay it back per week or will I have to pay the full amount even if I have no money? Any advice appreciated.
Money mysteriously deposited in bank account?
We have actually had this happen to us quite a few years ago. We almost spent the money, cause who doesn't need extra money. but in the end we were afraid that we would end up having to pay it back and there was just no way we could have afforded to do that down the road. So I called the bank and told them what was going on. After checking into my account they realized that they had deposited someone else's money into our account by mistake!! Damn banks!! LOL So the money was taken back out. But you can imagine my relief that we didn't spend it like we wanted to. On the other hand I have often wondered if they would have ever caught the mistake had we not brought it to their attention....who knows. I guess this is a decision you and your hubby will have to make together and decide if the risk is worth it!! Good Luck!!! :)
How do banks benefit from 'storing' your money for you?
They don’t. Well not directly from your current or checking account.Money transfer costs money, and since the money is being transferred a lot, the earnings from lending it out are minor. Thus many banks charge fees to cover the cost.The benefit of offering a current account is that the customer begins to build a relationship with the bank, and thus the account serves as a means of selling other products. For example a credit card or a pension savings product, or a mortgage or insurance etc.They also can get deposits for savings from customers. As this money is less liquid (or just not withdrawn as much) they can use this to fund their other lending operations. In times of significant financial turmoil, these deposits can be very important. During the 2008 crisis banks lost trust in each other and inter bank lending rates increased significantly as banks simply did not trust each other.
Someone deposited a lot of money in my bank account?
Ok so I go online and check today... I have Checking and Savings mind you. I noticed in my savings account, there was like over $3000 in there and I was WTF!!! I know its not the IRS depositing my returns because this deposit reads "CUSTOMER DEPOSIT"! Hmmm.... I'm really not sure what to do. If I call the bank and ask them, even if they dont know where it came from, will they let me keep it anyway or take it back regardless? Oh and I gave my account information to nobody. My guess is that maybe someone who banks at the same bank as me was probably a digit off when making a deposit and it went into my account. But that would make no sense because at my bank or most banks rather the teller asks you to swipe your card first in order to bring up your account on the computer before making the deposit right?
Transferring money from bank account to bank account?
my friend needed to try to transfer money into my bank account and he asked for my routing number/account number along with my card number and 3 digit security code on the back. it turned out it didnt work for some reason. is this how transferring money always works..? or should i be worried...