Which bank should I choose for a new account?

I have a question. I’m starting my first actual job—yay!—which means finally getting an official employment record. Does this mean I absolutely have to open a standard checking account to receive my paycheck, or can I just give my employer the details for my savings account instead? Thanks.

It goes straight to your checking account!
Though—if you want to be efficient—you can just set up an automatic transfer to move everything from checking over to your savings account.

Ronald Allen said:Look, from what I gather, you can pretty much move your direct deposit to any bank you want. You can even ask them to match the overdraft limit you had at your old bank. But, you’ll probably have to wait until your first paycheck hits and show them a statement from your previous bank so they can see exactly how much credit they should extend to you. Basically, you just pay off the balance at the old bank once the money hits the new one, then you can shut that old account down immediately. It’s really just transferring your standing from one place to another. 🙄
Regarding the cards, you BETTER do your homework here. There’s a massive difference between a CHARGE card and a REVOLVING credit card. With a CHARGE card, you’re paying off the full amount you spent by the next month. With REVOLVING, you just pay back a specific percentage that you agree on when you sign up—usually somewhere around 5% or 10%. 🙂
There are other nuances with REVOLVING cards too, but that’s getting into some complicated policy stuff, so I won't go there... Don't think I'm saying you can't get it, it's just kind of a pain to explain like this... 😉
Hope that helps... 👍

Can you just walk into any random bank and get this? Honestly, probably not. From what I can gather, only a handful of specific institutions actually offer something like this.😕

Mark Sullivan62 said:When it comes to how they handle revolving credit, I honestly think Zappos is the only one playing fair,

The way I see it, you spend $333, then you pay off $200 by the due date, and they only start charging interest on the remaining $267 starting from the actual due date—basically from the moment you settled those initial $67

But if you look at Chase, Bank of America, or even American Express, they calculate interest on that leftover $267 from the very day you actually swiped the card, not from the due date.

To me, that feels like a total scam; you really have to read the fine print when you sign up for a card to understand how the interest is actually calculated.

Maybe the difference seems trivial since it’s just a month, but if we’re talking about a massive amount—say $10,000—that you haven't cleared after two or three months past the deadline, that interest starts snowballing fast... and suddenly all your hard-earned cash is just vanishing into thin air.

What kind of robbery is this? You aren't being charged interest on money you didn't spend, nor are you paying for time before you even used the credit. The payment due date has absolutely nothing to do with how interest is calculated. Honestly, how would you react if they applied that same logic to a CD at Chase—if they decided to start paying you interest only from the first of the month instead of the actual day you deposited your cash? Would you call that fair business, or would you call it a total scam?

Andrew Stewart3 As specified by Gerald Morgan:
In my opinion, revolving credit is the most expensive way to borrow money there is, whereas a classic American Express card actually gives you an interest-free window.

If you aren't looking to drown in interest and live paycheck to paycheck, but just want something reliable for an occasional installment plan here and there, you really can't beat a classic American Express. 👍

Gerald Morgan said:I have a question. I’m starting my first actual job—yay!—which means finally getting an official employment record. Does this mean I absolutely have to open a standard checking account to receive my paycheck, or can I just give my employer the details for my savings account instead? Thanks.

Savings accounts with those old-school structures have a completely different setup than standard checking accounts, which means you can't just deposit money into them the same way. Honestly, you’ll find that almost no employer is going to want to deal with an account like that for direct deposit, and even if they did, most HR departments wouldn't even know how to process it.
Not to mention the absolute headache of having to wait in line behind retirees every single payday just to get your hands on your own cash 🤣 when any sane person in the modern world would just hit up an ATM and be done with it.

Look, I just withdraw everything directly from my checking account at the ATM. I don't carry some old-school passbook—I use a debit card for all my shopping, so I see zero reason to stand in line behind the retirees

George Barrett35 said:Can you just walk into any random bank and get this? Honestly, probably not. From what I can gather, only a handful of specific institutions actually offer something like this.😕

What kind of robbery is this? You aren't being charged interest on money you didn't spend, nor are you paying for time before you even used the credit. The payment due date has absolutely nothing to do with how interest is calculated. Honestly, how would you react if they applied that same logic to a CD at Chase—if they decided to start paying you interest only from the first of the month instead of the actual day you deposited your cash? Would you call that fair business, or would you call it a total scam?

Andrew Stewart3 As specified by Gerald Morgan:
In my opinion, revolving credit is the most expensive way to borrow money there is, whereas a classic American Express card actually gives you an interest-free window.

If you aren't looking to drown in interest and live paycheck to paycheck, but just want something reliable for an occasional installment plan here and there, you really can't beat a classic American Express. 👍

Savings accounts with those old-school structures have a completely different setup than standard checking accounts, which means you can't just deposit money into them the same way. Honestly, you’ll find that almost no employer is going to want to deal with an account like that for direct deposit, and even if they did, most HR departments wouldn't even know how to process it.
Not to mention the absolute headache of having to wait in line behind retirees every single payday just to get your hands on your own cash 🤣 when any sane person in the modern world would just hit up an ATM and be done with it.

I already laid out why it’s a scam

If Chase can calculate things fairly, I don't see why everyone else can't just follow suit.

Obviously, you pay the interest on what you actually spent.

Look, when you buy something on credit, there's supposed to be a grace period. And anything you don't clear by the due date—that's when the interest kicks in, starting from the due date, not from the moment you swiped the card at the store.

Because if it works the way you're suggesting, then there isn't actually any grace period at all, and I don't see why banks would bother lying to people about having one if it doesn't exist.

De facto, with almost every other credit card out there, the second you swipe, you're already in the hole if you don't settle up by the deadline.

With Chase, they only start hitting you with interest on the unpaid principal after the due date hits.

With a revolving card, you aren't buying on credit—you're taking out a loan. A fair way to handle things is simply charging interest from the very moment you use that credit. If you want a grace period, you go with a charge card instead. Honestly, if revolving cards offered the same deferred payment perks, nobody would even bother with charge cards anymore.
Just because Chase does things differently doesn't mean everyone else is being dishonest.

George Barrett35 said:With a revolving card, you aren't buying on credit—you're taking out a loan. A fair way to handle things is simply charging interest from the very moment you use that credit. If you want a grace period, you go with a charge card instead. Honestly, if revolving cards offered the same deferred payment perks, nobody would even bother with charge cards anymore.
Just because Chase does things differently doesn't mean everyone else is being dishonest.

Not quite. You can definitely buy things on credit without paying interest immediately with a revolving card. Just because it's labeled "revolving" doesn't mean you're forced to use the credit line right away.

Sure you can, provided you cleared the entire balance during the grace period. But if you’re only chipping away at a portion of it, you’ve essentially opted into a revolving credit line, which means you're knowingly agreeing to eat those interest charges. What you absolutely cannot do is try to juggle both the deferred payment plan and the revolving credit at the exact same time.

And let me be clear: just because one bank calculates things differently than another doesn't mean they're being dishonest.

No—it simply means some people are running more honest, more favorable calculations than others!

George Barrett35 said:Sure you can, provided you cleared the entire balance during the grace period. But if you’re only chipping away at a portion of it, you’ve essentially opted into a revolving credit line, which means you're knowingly agreeing to eat those interest charges. What you absolutely cannot do is try to juggle both the deferred payment plan and the revolving credit at the exact same time.

And let me be clear: just because one bank calculates things differently than another doesn't mean they're being dishonest.

I'm not sure I follow what you mean.😕 A deferred payment and a revolving credit line are two completely different animals. They have absolutely nothing to do with each other.

I could, say, pick up something worth $10. $0.00 Set them to four rates, then just add an extra one on top of that. $833 I'm looking at paying this off over 20 installments—just about 5% of the total value each time.

Steven Reed said:No—it simply means some people are running more honest, more favorable calculations than others!

Exactly.

That's precisely my point.

Charles Ramos7 said:I'm not sure I follow what you mean.😕 A deferred payment and a revolving credit line are two completely different animals. They have absolutely nothing to do with each other.

I could, say, pick up something worth $10. $0.00 Set them to four rates, then just add an extra one on top of that. $833 I'm looking at paying this off over 20 installments—just about 5% of the total value each time.

You're mixing up your terminology.
Let's try to make this simple. Say you buy something and the retailer offers to let you pay via credit card in, let's say, two installments. They'll charge you the first one immediately and then "pass along" the second one to the bank in a month. For the bank, when that second charge hits, it isn't viewed as an old expense from last month; it’s treated as a fresh cost incurred today. Because of that, you can absolutely pay off that second installment using your revolving credit just like any other bill. That isn't "deferred payment" tied to the card itself; it's a merchant-specific offer provided by the shop, and it depends entirely on that specific vendor—they might even give it to you for free.
When we actually talk about deferred interest or payment extensions on a card, that's when the merchant collects their money upfront and the bank gives you the grace period to pay it back by the due date.
What you can't do is simultaneously use a bank-issued deferral and your revolving credit line for that same transaction. That's my point.
Mind you, there are plenty of hybrid products out there now, so some of these overlaps are possible with certain specialized cards, but those aren't your standard charge or revolving cards anymore.

Good grief, you guys have completely scrambled all the terminology here...

The way I see it, it should work like this:
- Debit cards => The money leaves your account immediately; zero interest involved.
- Charge cards => You get billed later, but there’s still no interest applied.
- Revolving credit => You pay whatever amount you negotiated, but you're getting hit with interest starting from the very day the charge hits.

That’s how it ought to be, in my book... but hey, if it isn't, then it isn't.🤷

George Barrett35 said:You're mixing up your terminology.
Let's try to make this simple. Say you buy something and the retailer offers to let you pay via credit card in, let's say, two installments. They'll charge you the first one immediately and then "pass along" the second one to the bank in a month. For the bank, when that second charge hits, it isn't viewed as an old expense from last month; it’s treated as a fresh cost incurred today. Because of that, you can absolutely pay off that second installment using your revolving credit just like any other bill. That isn't "deferred payment" tied to the card itself; it's a merchant-specific offer provided by the shop, and it depends entirely on that specific vendor—they might even give it to you for free.
When we actually talk about deferred interest or payment extensions on a card, that's when the merchant collects their money upfront and the bank gives you the grace period to pay it back by the due date.
What you can't do is simultaneously use a bank-issued deferral and your revolving credit line for that same transaction. That's my point.
Mind you, there are plenty of hybrid products out there now, so some of these overlaps are possible with certain specialized cards, but those aren't your standard charge or revolving cards anymore.

To be honest, I don't know a single merchant that actually finances its own customer deferrals—I've never even thought about it that way.

What I consider "store deferment" related to cards is when a merchant offers an installment plan in partnership with a card network rather than funding it themselves. For instance, Walmart has a promotion running until tomorrow (unless they extend it) where you can split a purchase into 12 installments. It shows up on your statement just like any other transaction. That's what I'm talking about.

Kimberly Nguyen said:Good grief, you guys have completely scrambled all the terminology here...

The way I see it, it should work like this:
- Debit cards => The money leaves your account immediately; zero interest involved.
- Charge cards => You get billed later, but there’s still no interest applied.
- Revolving credit => You pay whatever amount you negotiated, but you're getting hit with interest starting from the very day the charge hits.

That’s how it ought to be, in my book... but hey, if it isn't, then it isn't.🤷

Actually, with most cards, it's just deferred payment without interest; the main difference is that with revolving cards, you can opt into a credit line.

When you split a purchase into installments, it’s actually the merchants who are footing the bill for that flexibility, much like how they handle check payments.
For instance, I pay my car insurance using an American Express card over six monthly installments, where each payment shows up on my statement as its own distinct charge. It isn't really an American Express thing; the card is just the tool I'm using to settle the bill—just like a check—while the installment plan is simply a feature the insurance company chooses to offer on their own terms.

Kimberly Nguyen said:Good grief, you guys have completely scrambled all the terminology here...

The way I see it, it should work like this:
- Debit cards => The money leaves your account immediately; zero interest involved.
- Charge cards => You get billed later, but there’s still no interest applied.
- Revolving credit => You pay whatever amount you negotiated, but you're getting hit with interest starting from the very day the charge hits.

That’s how it ought to be, in my book... but hey, if it isn't, then it isn't.🤷

it isn't 😁

at least when we're talking about Zelle or Maui or American Express cards, the interest kicks in on the due date, not the actual moment the transaction goes through.

Good grief—I’ve been reading through all of this and I am completely lost! Personally, I just stick to my debit card and don't even bother looking at the rest of these options.🙂

It’s actually even more confusing because even you seasoned pros can't seem to agree on whether we're getting ripped off or not.😉

I already told everyone exactly who was pulling the strings and playing dirty, but of course, nobody wants to believe a word I say 😁

George Barrett35 said:When you split a purchase into installments, it’s actually the merchants who are footing the bill for that flexibility, much like how they handle check payments.
For instance, I pay my car insurance using an American Express card over six monthly installments, where each payment shows up on my statement as its own distinct charge. It isn't really an American Express thing; the card is just the tool I'm using to settle the bill—just like a check—while the installment plan is simply a feature the insurance company chooses to offer on their own terms.

If the retailers are footing the bill themselves, why on earth would different credit cards have such different repayment terms?

I actually found this snippet from a major US credit card issuer’s site specifically written for merchants:

The ability to offer consumer loans or installment payment options can help boost your store's total sales volume.