Best Second Chance Banking (January 2016)

Why? Because hard-times arise especially in your Teens & 20's....and you may overdraft several hundreds of dollars as a loan and you may not get a chance to pay back the over-drafted money before your account(s) get closed. People tend to overdraft from a couple of banks and put the over-drafted money into a new bank before ChexSystem flags them. Now, once you overdraft from your last checking account (the one you stored the overdraft money from your other accounts) you are limited to receiving paychecks by prepaid debit card as it is very rare that you can get a paper check from an employer now in days (usually, government benefits have the option to come in the mail). And without a paper check you can not go to the liquor store to cash your check nor go to the cash checking spot to cash your check. (Granted you have to pay a fee at the check cashing spot and purchase a minimum at the liquor store)

However, lots of prepaid debit cards charge a monthly fee even if you direct deposit over $500 per month and most prepaid debit cards charge a cash loading fee. Plus, there are deposit limits on prepaid debit cards per month. Therefore, one needs to get back to a banking account as soon as possible and I have listed/described the best two options for second chance banking as follows:

Simple Bank ( https://www.simple.com/ )

• No fees. 
• No ChexSystem. 
• Free ATM access at more locations than a traditional bank. 
• Unable to overdraft. 
• Check writing requires some effort as you must contact simple and have them mail a check to someone . 
• Can't deposit cash outside of obtaining a money order.

TD Bank ( https://www.tdbank.com/ )
I had overdrawn accounts from other banks that I let close and TD Bank welcomed me with open arms. I had even overdrawn account(s) from TD Bank and they still let me open up another account be it a month after close-two years after close depending on the amount I had over-drafted and depending on the number of accounts I had over-drafted. They will simply transfer the overdrawn money from a future account to pay your old TD debt. The best thing about dealing with a traditional bank is that you can easily deposit cash, in TD's case they are open 7 days per week, you can get in-person assistance, the ability to overdraft accounts, no fees if you keep at least $100 in a checking account, and they can handle your other financial needs as well.

Defensive Stocks Defined.

"The term defensive stocks is synonymous to non-cyclical stocks, or companies whose business performance and sales are not highly correlated with the larger economic cycle. These companies are seen as good investments when the economy sours.

As their name suggests, defensive stocks will defend your portfolio from losses typically sustained during recessionary periods. Defensive companies are those whose business is not highly dependent on economic prosperity. Car manufacturers, for example, are not defensive stocks: people buy cars when things are going well, but postpone car purchases when times are tougher. Car manufacturers often see their revenues decline drastically during economic recessions. By contrast, companies in the utilities sector are defensive stocks. Even in times of economic hardship, people need to keep their families warm (using natural gas, in most cases) and light their houses (using electricity). Unlike a new car, utilities are essential and cannot be put off. Therefore, because defensive-type companies such as utilities have more consistent sales, their stocks are seen as smart investments during an economic downturn."

( http://www.investopedia.com/ask/answers/04/072004.asp )

Consumer Staples Stocks Defined.

"DEFINITION of 'Consumer Staples'

Essential products such as food, beverages, tobacco and household items. Consumer staples are goods that people are unable or unwilling to cut out of their budgets regardless of their financial situation. Consumer staples stocks are considered non-cyclical, meaning that they are always in demand, no matter how well the economy is performing. Also, people tend to demand consumer staples at a relatively constant level, regardless of their price."


( http://www.investopedia.com/terms/c/consumerstaples.asp )

Cyclical Stocks Defined.

"Cyclical stock is a security that follows the ups and downs of the overall economy.  When the economy is going up, the cyclical stock’s price goes up.  When the economy is bad and falling, the cyclical stock’s price goes down.

Cyclical stocks are usually the stocks of companies that produce non-durable, discretionary goods and services.  These are typically companies such as auto manufacturers, airlines, hotels chains, restaurants, furniture retailers, and higher-priced clothing retailers.   When the economy is not doing well, people tend to postpone their travel, entertainment and large durable goods purchases. As a result, revenue for these types of companies declines, as does their stock prices.  If the economic slump is bad enough, these companies may go out of business.

On the upside, sales will increase when the economy improves and consumers have more discretionary income. The uptick in revenue will cause a corresponding increase in the stock price. In fact, cyclical stocks tend to have a very large upswing when the economy picks up.  This is what makes cyclical stocks attractive to investors.  Note though, it is very difficult to predict economic ups and downs.  Timing the market in this way takes a lot of investor analysis and experience, and there is no sure-proof method of avoiding risk."

( http://www.investopedia.com/video/play/cyclical-stock/ )