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15. Re: More Project Eternity Goals Oct 2, 2012, 15:23 eRe4s3r
Heh that is actually a good question. It is neither required to be electronic nor that it goes specifically into a giro bank account. I guess it's just how the system evolved here. Most employees specifically ask for a giro account to pay you because it has some legal/tax related issues if money is not transferred directly to electronic banking (Especially if your employee evades taxes or cheats social security systems). I can assure you that if you live here, you would definitely want your (usual) income to be credited on the giro account, taxes and most legally required thingsare deducted "up-front" anyway. Then there is stuff like health insurance (which is mandatory) or rent. Ie, the giro account is for the monthly in/out. It is not a savings account. Savings should be transferred to proper, specifically made for it, accounts. It get's even better in that most legally relevant payments TO YOU also only go to a giro account. I think it is some legal requirement banks have here, but it also is dangerous because you *CAN* lose a giro account too, and that is usually a very bad thing.

Off hand I have no idea why exactly that is how it is. Nor what a credit union is or does. I can only tell you how I handle it, and expenses and incomes go into 1 account, whatever is left over (ie, after running costs + a safety balance) goes into my savings. Savings are fixed and have higher interest, but giro has low interest (in exchange for no fees). Also paying with EC/Giro is "fee less" that means, a store has to ALWAYS accept you paying with EC/Giro without a fee.

In a sense, this must be a pretty damn weird system from an US perspective.

You have to think of EC/Giro system like a electronic cash system where your cash is in a safe and with permitted deductions money gets taken out of, you can pay with the money that's in, and money you get goes in. It is a central banking system for your expenses (What you do besides giro accounts.. is up to you).

I am surely missing something fundamental about the system here. But it seems like a good system... I probably explained it pretty stupidly though...
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