10 recentbankingevents

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Unformatted text preview: below market rate: US $3,000 times .6300 = € 1,890.00 (a 6% effective fee) A reasonable fee is 1 – 3% 9 U.S. Dollars to Buy 1 Euro A good summer for a European vacation Since mid 2012, the number of dollars required to buy 1 Euro has increased, thus the Euro is getting stronger and the dollar is getting weaker. 10 Recent Banking Events New banking reform laws will no longer allow banks to: Let you overdraw with your debit card and then charge you fees Consumers can sign­up for overdraft protection for a fee (not recommended as a best practice) Charge retailers steep fees for accepting debit cards Banks need to make up lost fees, so expect more fees and charges from your bank in the future Understand the rules and watch your account closely e.g. if your minimum balance falls below $1,000, then there will be a $15fee for the month 11 Automated Teller Machines ATM fees may also increase. ATM fees can be steep. To reduce ATM fees… Compare ATM fees first Use your bank’s ATM when possible for cash and to check balances Withdraw larger cash amounts as needed Use personal checks, traveler’s checks, credit cards when traveling ATMs can result in individuals “burning” through a lot of cash. Reducing ATM withdrawals can help you save money. 12 Opportunity Costs of Financial Services 13 A Word on “Float” Float represents the time between incurring a liability and actually paying cash More float = more interest income Little or no float Paying cash Debit cards Paying...
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