The Dynamics of Cats blogger has noticed something fishy at a "large west coast bank, relatively well known including for some recent financial games with the Feds" — tellers are pushing "direct deposit advances" that let you access deposited checks in real time for the low-low APR of :
This time, the nice lady at the counter asked me if I needed immediate access to the deposit?
Huh? Said I. Looking at the payeee – "I think the check will clear…"Oh, it is not that, said she, it is just that some people need immediate access to their deposits, like same day, or tomorrow, and if you did we can expedite it.
Oh, that's nice, thought I, and said "no thanks, got enough balance to cover any outstanding transactions thanks, but been there…"
so, I wandered off, and suddenly though – well was prompted by my better half to think – "expedited? at what price?"
So, I checked online – there is nothing about expedited access to deposits, rather a guarantee that deposits before 4pm are available same day… or next day.
Unless: several reasons, none of which apply to me, nor, I sincerely hope, the payee.But, there is "direct deposit advance".
Interesting:"The Finance Charge is a one-time transaction charge and is not dependent upon the length of time the advance is outstanding. The Finance Charge is $2.00 for every $20 that is advanced, which equates to an Annual Percentage Rate (APR) of 120%."
