AFAICS the only advantages of the scheme are (i) economies of scale (ii) if you for some reason can't easily save money any other way (which I appreciate isn't necessarily a simple question of willpower in all cases).
Feeding the money into the firm's general cash reserves would be fair enough if they'd actually been able to meet their promises; had it been some more financially secure firm (a big supermarket, say) running the operation then the fact that the cash wasn't isolated wouldn't have been a problem (and they'd probably be in a better position to get some return on the cash in the mean time, pushing the price down - or the profit up - a bit).
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Date: 2006-11-12 05:12 pm (UTC)AFAICS the only advantages of the scheme are (i) economies of scale (ii) if you for some reason can't easily save money any other way (which I appreciate isn't necessarily a simple question of willpower in all cases).
Feeding the money into the firm's general cash reserves would be fair enough if they'd actually been able to meet their promises; had it been some more financially secure firm (a big supermarket, say) running the operation then the fact that the cash wasn't isolated wouldn't have been a problem (and they'd probably be in a better position to get some return on the cash in the mean time, pushing the price down - or the profit up - a bit).