My bank offers online bill payment as part of its internet site. They offer ten free payments per month, and charge $0.40 for each payment after that. Is that a good deal?
Although some banks offer free bill payment service, even this deal offered by your bank will save you money if you use it correctly. You obviously cannot write a check and mail it for less than the first-class postage rate, so the ten free payments in this package are truly a good deal. Even if you pay a penny more than first-class postage, that's only after the first ten payments. You'd have to make another ten payments each month before you'd wipe out the savings on the first ten.
Some important things for you to check out --
How far in advance of the payment date do you have to set up a payment to ensure it will be timely? Most bill payment services will issue the check one business day after you enter the payment instructions.
Will some of the people you need to pay accept electronic payment from your bank? That will usually mean a savings of a couple of days delivery time.
What is the procedure for follow-up if a payment doesn't get received by your payee? Find this out from your bank. The less complicated the process, the better.
Will your bank reimburse you for any late penalties caused by the bank's delay in processing a payment instruction?
We think that bill payment is a valuable service for your bank to offer, and we encourage you to check it out. It will benefit you if you can work within its guidelines.
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Although some banks offer free bill payment service, even this deal offered by your bank will save you money if you use it correctly. You obviously cannot write a check and mail it for less than the first-class postage rate, so the ten free payments in this package are truly a good deal. Even if you pay a penny more than first-class postage, that's only after the first ten payments. You'd have to make another ten payments each month before you'd wipe out the savings on the first ten.
