Zero Financial

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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betablocker
Posts: 440
Joined: Mon Jan 11, 2016 1:26 pm

Zero Financial

Post by betablocker » Sat Nov 17, 2018 1:19 pm

This is an interesting new product that Bogleheads should keep and eye on:https://www.nytimes.com/2018/11/16/your ... eview.html. It is a bank account with a credit card but they operate it like a debit card so if you over spend your cash it would reject a credit transaction. If you spend over $100,000 you get unlimited 3% cash back.

2015
Posts: 2176
Joined: Mon Feb 10, 2014 2:32 pm

Re: Zero Financial

Post by 2015 » Sat Nov 17, 2018 2:10 pm

Saw it. Don't like the whole app/minimum deposit thing. Might be right for others though.

Broken Man 1999
Posts: 1581
Joined: Wed Apr 08, 2015 11:31 am

Re: Zero Financial

Post by Broken Man 1999 » Sat Nov 17, 2018 3:11 pm

I wonder if the debit transactions are as protected as credit transactions when fraud activities take place. Wife just got her Sam's credit card hacked. No liability for her.

I've never seen the attraction of debit cards. Much rather use a credit card and earn rewards.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

betablocker
Posts: 440
Joined: Mon Jan 11, 2016 1:26 pm

Re: Zero Financial

Post by betablocker » Sat Nov 17, 2018 3:25 pm

As I understand it it is a credit transaction so would have the same protection. They also give you 1.75% on your deposits so it really replaces savings, checking and credit card rewards.

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JoMoney
Posts: 6296
Joined: Tue Jul 23, 2013 5:31 am

Re: Zero Financial

Post by JoMoney » Sun Nov 18, 2018 12:24 am

Likely has the same protections as a credit card, but it does auto-pay on the balance, so you would need to be very careful to review your transactions frequently and dispute anything that's fraudulent before the billing cycle ends.
Personally, I don't like/allow anything to auto-debit my accounts. I like getting a bill (even if it's just electronically) that I will reconcile after I review it myself.
There's no way I would reach the $100k annual spend necessary either, so that alone means I'm out.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

venkman
Posts: 750
Joined: Tue Mar 14, 2017 10:33 pm

Re: Zero Financial

Post by venkman » Sun Nov 18, 2018 12:56 am

It seems like there would be a very small overlap between people who who are worried about overspending on their credit card and people who would happily spend $100k to get 3% cash back...

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