As though of you who have been following my blog are aware, I am currently unemployed. (I’m actually working part-time, but earning a low enough rate that I am still able to receive unemployment benefits.) I am also a resident of Pennsylvania, and have been all my life. And so, it was with great interest that I read this article on CNN about the fees on Pennsylvania’s unemployment debit cards. (Thanks to Mrs. Micah for making note of this article on her blog.)
As a little bit of background, Pennsylvania pays out unemployment in one of two ways. First, you can opt for direct deposit into your bank account (this is the path I chose, since I’m attempting to do most of my banking online anyway). If you are unable or unwilling to do direct deposit, you will receive a debit card, onto which your benefits will transferred when you apply for benefits every two weeks. These are the only options that Pennsylvania (and many other states, I gather) seems to allow; it’s no longer possible to get paper checks sent out.
The problem with the debit cards is that there are numerous fees that are triggered when you take certain actions. These actions can range from making too many withdraws (even at participating banks) to accessing your account via the telephone too many times. A short list includes the following:
-Withdrawing money from a PNC or Wachovia ATMs: $1.50 per withdraw (you are given at least 1 free withdraw using these ATMs per deposit)
-Withdrawal from Alliance One or Seven Eleven ATMs: $1.50 per withdraw (no free withdraws offered)
-Withdrawal from other ATMs: $1.50 per withdraw, plus any surcharge fees from that bank
-Teller Withdraws: No fee
-Deposit transfer: $1.50 each time
-Purchases in the U.S.: No fee
-ATM Balance Inquiry: $0.40 each time
-Monthly account access via telephone: $0.35, after using up the five free calls provided each month
How can you control the amount of money that gets eaten away by these fees? Simple, know your habits and how you’re going to use the debit card. If you never use an ATM (I don’t, myself) and either pay for your purchases directly or withdraw the money using a teller, you can get the debit card without worrying about being nickeled and dimed to death by fees.
On the other hand, if you frequently use ATM machines, especially ones from companies other than PNC, Wachovia, Seven Eleven, and Alliance One, you should at least consider having the cash directly deposited into your checking account. If you find that you’re paying too much in fees to access your unemployment money (and I’d say that paying any fees is too much), it is possible to change your account over to direct deposit without much difficulty. When you are filling out your biweekly unemployment application, you should see the appropriate link available on your state’s system. (It’s one of the first links on the PA unemployment system.)
Here is the site for EPICard, the Pennsylvania unemployment debit card system. It also serves Florida, Georgia, Illinois, Indiana, Iowa, Mississippi, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Texas, Utah, and Virginia. They provide numerous services, and could be quite helpful if you get your money put onto the debit card.
- My Credit Card Register
- Why Investors Care About Dividends
- Ten Steps to Control Your Finances: Steps 3 & 4
Related Websites
My Life ROI
on March 26 2009
Interesting method of doing unemployment. I will have to read up on the fees associated with that just in case I fall into that situation or I know someone who does.
Your suggestions about the fees are very logical. People often overlook the fees since they are so small, so these suggestions would do them good!
Roger
on March 28 2009
It’s not a bad system, as long as you pay attention to the fees. It’s at least as secure as mailing out checks, and definitely uses less paper.
It’s probably a good idea to look into your state’s system, especially if you have any reason to feel you might be unemployed soon. I know the Pennsylvania system, for one, is rather complex, and some extra knowledge would have been helpful.