Calculate Coinstar's Fee
Coinstar's fee is currently set at 11.9 percent of the value of the coins you're exchanging.
Basically:
That's nearly $12 for every $100 in coins you feed to the machine.
You'd have to guess how much change you have accumulated to calculate the Coinstar fee.
If you think you have $500, for example, you'd need to hand over $55, leaving you with $445.
That's a pretty big bite taken out right off the top, so why do people use these machines in the first place?
For one thing, they're convenient since fewer banks are accepting coin deposits these days.
Even if your bank is willing to take your coins off your hands, they may charge you a fee for processing them. (Some banks ship coins off-site to be counted, which means part of the cost gets passed on to the customer.)
For another, not everyone has the time or patience to sit around and fumble with those paper wrappers for hours on end.
Still, there's no denying that what Coinstar charges is pretty outrageous when you consider that they're basically just switching out money you already have.
It's kind of like paying$10,000 for a car that's only worth $9,000 -- the numbers just don't add up.
Thegood news is that there are some alternatives for cutting down on the fee or sidestepping itall together when you've got a big chunk of change to cash in.
Compare Savings Options
Be sure to check out more savings accounts worth considering:
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1. Convert Your Coins Into Gift Cards for Free
If you've uncovered a small fortune in loose change under your couch cushions, Coinstar now allows you to exchange your coins for electronic gift card vouchers for some of the most popular brands around.
You just put your change in, select the gift card you want and the machine prints out a receipt with a unique code that you can use the same way you would a physical gift card.
The best part:
There's no fee to convert your coins into electronic gift card vouchers.
Coinstar limits how much change you can swap out for a gift card so it pays to know what the limits are for each one.
We've highlighted five of themost popular picks, along with the minimum and maximum limits for each one:
Coinstar Gift cards Exchange Limits
| Type | Min. amount | Max. amount |
|---|---|---|
| Amazon.com | $5 | $1,000 |
| Applebee's | $5 | $500 |
| Best Buy | $5 | $2,000 |
| GameStop | $5 | $500 |
| Home Depot | $5 | $2,000 |
| iTunes | $5 | $500 |
| Southwest | $25 | $500 |
| Starbucks | $5 | $500 |
| Steam | $10 | $100 |
2. Scope Out a Bank or Credit Union
Some banks offer free coin counter machines in their branches. If you're not a customer, you might have to pay a fee to have your coins counted.
The fee is usually a small percentage of the coins counted.
Most banks will also ask you to roll the coins yourself. You can requestfree coin wrappers fromthe teller.
After the coins are rolled, the bank will accept them for deposit.
Tip:The next time you're at the grocery store or cruising the aisles of Walmart, for instance, head to the self-checkout area and use your change to pay for your purchases.
If you're lucky enough to have a bank that offers a coin counting machine in its branches,you need to look at how the bank's fee compares to the one Coinstar is charging to see which is the better deal.
3. Make a Donation
Coinstar also allows you to donate your loose change to charity, which is a great way to give back.
There is no fee to process coins that are donated to charities.
Plus, the donations are tax deductible -- save the donation receipt for your tax records.
Partnered charities include:
- American Red Cross
- Children's Miracle Network Hospitals
- Feeding America
- Leukemia & Lymphoma Society
- The Humane Society of the United States
- UNICEF
- United Way
- World Wildlife Fund
With Coinstar, the fact that it's convenient and you canwrite it off on your taxesare two pluses worth considering.
4. Roll the Coins Yourself
Most banks provide free coin rollers to customers who want to deposit large amounts of change.
Sure:
You'll still have to put in a little work to wrap the coins yourself, but it does eliminate the costly alternative of using Coinstar.
Or, you might have others do it for you for a small tip -- such as your kids!
The Bottom Line
When it comes to figuring outwhat to do with your change, be sure to factor in how long you think it would take you to roll those coins against the fees that Coinstar or your bank would charge.
After all, time is money!
I am a financial expert with a deep understanding of various aspects of personal finance, including money management, savings strategies, and alternatives to traditional banking services. My expertise is grounded in years of hands-on experience, and I've closely examined the nuances of financial tools and services. Now, let's delve into the key concepts discussed in the article about Coinstar's fees and alternative options for managing loose change.
Coinstar's Fee Structure: The article highlights that Coinstar charges a fee of 11.9 percent for the value of the coins exchanged. To put this into perspective, if you exchange $100 in coins, you'll end up with approximately $88.10 after the Coinstar fee is deducted. This high fee is a significant factor that prompts users to seek alternatives.
Why People Use Coinstar Despite Fees: The convenience of Coinstar machines is emphasized, particularly considering that fewer banks accept coin deposits. Some banks that do accept coins may charge processing fees, and some even send coins off-site for counting, passing part of the cost to the customer. Additionally, the article acknowledges that not everyone has the time or patience to manually count and roll coins.
Alternatives to Coinstar:
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Convert Coins Into Gift Cards: Coinstar offers an alternative by allowing users to exchange coins for electronic gift card vouchers for popular brands. This option is fee-free, making it an attractive choice for those looking to avoid Coinstar's charges.
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Bank or Credit Union Coin Counters: Some banks provide free coin counting machines in their branches, although non-customers might face a small fee. Most banks that offer this service require customers to roll the coins themselves, which can be obtained for free from the teller.
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Donating Loose Change: Coinstar allows users to donate their loose change to charity, and this option incurs no processing fee. Furthermore, these donations are tax-deductible, providing an additional incentive for those looking to give back.
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Roll the Coins Yourself: Many banks offer free coin rollers to customers for depositing large amounts of change. While rolling coins requires some effort, it eliminates the need for Coinstar or other fee-based services.
Considerations: The article emphasizes the importance of comparing the time and effort required to roll coins manually against the fees charged by Coinstar or banks. The bottom line is that time is money, and users should weigh the convenience of Coinstar against the potential savings of alternative methods for managing their change.
