How to Avoid Interest When Cashing in Coins for Bills

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With the recent pandemic times, many businesses have been affected. Consequently, banks too have had their fair share of problems during the pandemic. People have withheld money which has led to less money going back into circulation at banks. 

It is said that during the pandemic, there was an increase of about 70% money in circulation, but many people were paying online, so chances are high they were using credit cards to pay.

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In this article we talk about how you can avoid interest when cashing in coins for dollars. Continue reading to learn more about this.

How to Avoid Interest When Cashing in Coins for Bills
Image source: gianteagle.com

 

What Is Coinstar?

Coinstar is a company that produces systems that count coins for you and exchange it with cash, gift cards or charity donations. Coinstar has placed its coin-counting machines in most grocery stores, like Walmart and Kroger. 

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Even some smaller stores may have these machines around the US. They are so convenient that you can walk in with a bag full of coins, dump them in the machine, and collect your paper money. 

However, this machine doesn’t work for free. You have to pay it an interest. It charges you 11.9% of your total deposit. 11.9% is the standard Coinstar interest, however, some stores may subsidize their interest fee. 

And, there is no cheating as you can see the whole process of counting coins and interest building up. Everything is automated. Much as the interest fee is high, the beauty of Coinstar is that you don’t have to move around with a heavy bag full of coins.

How it Works

When you drop coins in the machine, it takes time to count it, drop it in the tray, and takes away the 11.9% interest. After, it gives you the option of how you want to be paid. 

Do you want a gift card to certain stores, cash or donate to charity? When you choose cash, then that’s when it gives you the cash and that’s when the interest is charged. If you choose the other two options, you are not charged interest.

Get an E-Gift Card

After the Coinstar machine has counted your coins and given you the total, it’s up to you to choose how it pays you. Remember if you choose cash, it charges you the interest fee. But, if you choose an e-gift card that you can use to shop in several stores, then you don’t pay the fee. 

If you have to lose 11.9% each time you deposit coins, then you might choose an e-gift card and save it. After all, aren’t you going to use the cash for shopping? Then why not shop with an e-gift card?

Donate Coins to Charity

How to Avoid Interest When Cashing in Coins for Bills
Image source: coinnews.net

 

This is another way of bypassing the Coinstar interest fee. After dropping the coins into the machine, it counts them and gives you the total. After it gives you options for how you want to be paid. 

Select “charity” and teach your children about giving. After all, what is the use of keeping coins around as they gather dust yet there are people out there that need them to survive?

Conclusion

With the pandemic causing a shortage in coin circulation, businesses and people have been affected. Some stores have put up posts that you either pay with the exact cash or use a credit card since there are no coins for your change. 

If you have coins at home, you can use Coinstar machines and exchange them either for an e-gift card or donate to charity.

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