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Target Debit Card
Nov. 23rd, 2010 10:35 pmI'm not generally an early adopter. Often the prices on new things are high, and quality is only going to get better. However, I suspect the same is not true for new financial instruments.
I'm basing that suspicion partly on the fact that I-bonds started with fairly high interest rates (3% + inflation) and they slowly plummeted to 0%. I'd always thought that when interest rates fell enough, the added part would have to get big again to lure people into getting them. But people are so chicken of stocks that they are willing to earn only 0 or 0.1% + inflation, even when inflation is 0. So, now I suspect the early rates were to entice people to try a new product.
Similarly, the interest rates of online savings accounts have plummeted. They are still significantly higher than those of regular savings accounts, but that's not saying much and the difference is no longer phenomenal. Maybe those gaps will widen again if things ever go back to normal, but I suspect not.
And that is why I'm writing about the new Target debit card. I think they are offering an especially good deal now to lure people into trying out this new scary-sounding thing, and once people realize it's perfectly safe, the rewards will shrink.
What's scary: It's a debit card. You are letting Target stick their hands directly into your checking account. And it only works at Target, so it's yet another card to carry around.
The enticement: You get a 5% discount on just about everything you buy (not gift cards or prescriptions or a couple of other things). It applies to sale items and items you bought with coupons as well.
I'm going to go for it. The applications in the store say you have to mail them in, but plenty of other things say you can apply at the register (I wouldn't try this on Black Friday, though). There are rumors of a 10% discount--that may be old news now. And in the future, I suspect this discount will drop to 1% or 2%. But meanwhile, I'm going to check it out.
Quote of the Day - "In order to remove and refurbish the existing brass chandelier above the Main Building Information Kiosk, it will be necessary to first remove the Kiosk's existing roof structure." - I know it's hard to remember that once you build something, something might need to be changed, but it sounds like below-average design when you have to remove a roof to polish a lamp.
I'm basing that suspicion partly on the fact that I-bonds started with fairly high interest rates (3% + inflation) and they slowly plummeted to 0%. I'd always thought that when interest rates fell enough, the added part would have to get big again to lure people into getting them. But people are so chicken of stocks that they are willing to earn only 0 or 0.1% + inflation, even when inflation is 0. So, now I suspect the early rates were to entice people to try a new product.
Similarly, the interest rates of online savings accounts have plummeted. They are still significantly higher than those of regular savings accounts, but that's not saying much and the difference is no longer phenomenal. Maybe those gaps will widen again if things ever go back to normal, but I suspect not.
And that is why I'm writing about the new Target debit card. I think they are offering an especially good deal now to lure people into trying out this new scary-sounding thing, and once people realize it's perfectly safe, the rewards will shrink.
What's scary: It's a debit card. You are letting Target stick their hands directly into your checking account. And it only works at Target, so it's yet another card to carry around.
The enticement: You get a 5% discount on just about everything you buy (not gift cards or prescriptions or a couple of other things). It applies to sale items and items you bought with coupons as well.
I'm going to go for it. The applications in the store say you have to mail them in, but plenty of other things say you can apply at the register (I wouldn't try this on Black Friday, though). There are rumors of a 10% discount--that may be old news now. And in the future, I suspect this discount will drop to 1% or 2%. But meanwhile, I'm going to check it out.
Quote of the Day - "In order to remove and refurbish the existing brass chandelier above the Main Building Information Kiosk, it will be necessary to first remove the Kiosk's existing roof structure." - I know it's hard to remember that once you build something, something might need to be changed, but it sounds like below-average design when you have to remove a roof to polish a lamp.