So lately, I’ve looked stuff up and found out that interest rates at my bank are anywhere between 0.05% (regular savings) and 0.55% (CDs). Meanwhile, I’m being charged $12 per month on my checking account as a monthly maintenance fee.
Now, are these the forces of a classical economy that try to get people to save less and spend more to get the economy moving, or are they part of an unprecedented nationwide conspiracy? I want to, like, know and stuff.
Pfft. Checking accounts are for stay-at-home mothers and the elderly. These 2 groups of people always hold up the line at supermarkets with their check shenanigans. Seriously, though: cancel the checking account.
As for the maintenence fee, I just found out that I was being charged that for the past 5 months because my account balance went under a certain amount (I had no idea there was a minimum balance to avoid fees). And I assumed that it had something to do with the news about many banks now charging debit card fees to users, so I grudgingly took it up the ass.
Yeah, I was with a bank that was screwing me.
My savings account was earning about $2.00 interest a month, but they were charging me a $5.00 monthly fee. That’s the farthest thing from a savings account. Mind you, I didn’t have much money in there, but to charge a monthly fee on a savings account is ludicrous. If I set up a savings account for a 6 or 7 year old, it would lose money. Fuck that.
My checking account was being hit for $5.00/month as well.
To top it all off, they were having computer/network issues one weekend, and I couldn’t access any of my money for 3 days straight.
I closed my account, moved everything over to a credit union, and all is now well.
-no monthly fees on either of my accounts
-no fees for using out-of-network atm’s (no fees on my credit union’s end, possible fees on the atm end, but I have found surcharge-free atm’s so it costs me nothing to use them)
-My checking & savings accounts are linked. Now if I overdraft on my checking account, they automatically take the $ out of my savings. My old bank refused to do so, would let my checking account overdraft, then charge me an overdraft fee. (Not that I overdraft my account on a regular basis).
-No overdraft, line of credit, or other bullshit fees.
-Better customer service
-I don’t get harassed to use their services. The bank would constantly try to get me to take out loans, switch my mortgage, etc.
Honestly, it’s mostly about the fees. Most major banks nickel and dime you to death. It seemed like they were coming up with new fees & penalties every month, and I got sick of it. I got tired of calling & being on hold, or having to go into a branch to get the charges reversed or explained to me. The credit union is essentially free of deceptive bullshit, I’ve never once been charged for anything, my wife has been with them for most of her life and was always happy with them. Furthermore, we got our mortgage through them at a decent rate, and they will never sell the mortgage off to someone else, which is important.
Financial institutions are competitive. Working with one bank, I had people coming in and closing their accounts and telling me they were going to X bank because they didn’t charge a check card fee. A week later X bank was charging the fee. Banks are a business, consumers must understand this. I actually had a rather pleasant customer come into my branch, sit down at my desk and unload on me about a $7 maintenance charge that hit her account. I informed her of the changes to our accounts since last year and the methods for avoiding the fees. She interrupted me literally saying “blah blah blah blah”, and rolling her eyes. And this is after I told her I was refunding her maintenance fee.
These kind of reactions tell me all I need to know about client’s thought process about banks. How do you NOT know you’ll be charged a fee for spending the banks money aka going $100-$300 into the negative of money that isn’t in your account? People like that who come in the branch and yell at us make me laugh. Biggest mistake clients are making? Not being aware of their surroundings, both physically and financially. Cutting me off with “Just tell me where I need to sign, I have to meet my friend for lunch”, while I try explaining our bank’s policies, funds availability, and fee schedules isn’t a good start to your financial future with us. Lunch or a series of disruptive cell phone calls are more important than leaving the branch with the knowledge to avoid ANY fees or headaches?
It’s this simple: Keep at least $100 monthly direct deposit going into the account or maintain a required daily collected balance of $200-$1500 depending on the bank and the account is free. If you can’t muster $100 to deposit into your account a month from working…then banks and their fees are the least of your worries. I’m not a big bank sympathizer but this shit is easy to bypass if you can manage your finances wisely or even halfway decent. I mean, it’s ALL out there in the open when you walk into a bank, just pick up the literature and fucking read.
I can’t sympathize with people complaining about fees either quite honestly because the majority of those that complain to me, when I check their overdraft history, they have an average of 13 over a rolling 12 month period. That’s 13 times in a year someone doesn’t know what the fuck they have for money and spending what you don’t have.
It’s all going to boil down to how you like to do your banking. How do you like to do your business? Because when you come to the table to do business, it’s a two way street. Credit Unions aren’t as simple and out-of-the-kindness-of-their-hearts as many make them out to be. If they truly were, Banks would shrivel up and become an afterthought. No such thing as a free lunch.
RPD, I respect you, but no shit not having $100 going into your bank account is the least of your worries.
It sucks being unemployed and being nickel-and-dimed because you don’t have enough money saved. How much does it really cost a bank to hold onto an account balance of $500 for someone? It is a bullshit slippery slope.
Hey, I don’t agree with it either. It’s one of the many reasons I would make a piss poor CEO. It really boils down to the shareholders of said financial institution. Our bank’s shares were down .18 a share a few years ago. Today, they are .38 per share. Shareholders want to know a company they are investing in is giving them a worthwhile return on their investment. They make a demand to see an increase in shareholder value by a specific time frame and the CEO runs with it.
Given the state of everyone’s financial well being after our recession, that was extremely poor timing for banks like Bank of America to plan a rollout of new fees. The Dodd Frank bill along with other forms of legislation passed made banks evaluate how they were going to continue to make a profit and “grow” even during tough times. In come the new fees and gone are the free accounts to shore up areas now compromised by new laws. Banks that had free accounts then tweak them to find ways to pocket some dough off those who couldn’t meet the requirements.
Sucks being unemployed, I’ve been there, it’s no fun not having a future. My take is, if you’re funds are compromised because of unemployment, keep those finances close to your chest. Banks are for profit and if you aren’t going to play by their rules, they will pocket some of your money in the process.
On a completely unrelated note: I remember that time years ago you yelled at me to suck your dog’s dick. I randomly thought about that when I saw you posted in here lol.
Apparently Clinton is the one that fucked up banking by removing the distinction between investment and savings banks or something. I use a credit union and they’ve been legit to me.
I don’t remember saying that? I’ve never had a dog, owning a dog is my life’s dream. I remember you from a tourney like a million years ago where I got to shake your hand was frightened by how strong your handshake was. You got first or second in 3S, and you were playing against Flash.
Since we all agree that a bank is a business, you have to look at it from their perspective for a second. (I know, I know)
Of course, yes, if you cannot make $500 a month then something is wrong with you and a $5 fee is not what you should be worrying about. I know not every company does direct deposit, but just about all of them out there do. Literally, its just $500. But…
It does cost the bank to monitor and hold your money. There are fee’s for security maintenance, suirvelance, tracking, statements, your online access you probably love so much, debit cards issued, etc. There are whole departments dedicated to just this, like security, that are there to reimburse all your money so you are not stranded in Mexico when you left your charge card by the pool and your waiter ran up your account. Pretty convenient to have international coverage no? Remember, most banks cover fraud 100%, so your screw ups come as a big loss to the bank, besides the astronomical amount of fraud caused by criminals out there. Its hundreds of millions a year. Also, you must remember to that not everybody can just open up a checking account.
You have to have some level of a reasonable Equifax history, (never caught for forgery, robbing banks, writing years of bad checks, basically either not the worst person with money ever or have committed a financial felony) because the fact is the bank is taking a risk with every person they open accounts for. Before fraud even becomes a factor, you have to remember that tons of people out there suck with money. In fact, most of them do. So when people overcharge their accounts, or have checks cashed they cannot cover, it comes as a loss to the bank, And what do people do?
They bitch that they are in the negative and close their account. They may never pay back what they owe, so there is a loss for the bank. Also, those overdraft fee’s that everyone hate are there because the bank is actually being kind enough to cover you. If you do overdraft your account, it was your own dumb fault, sorry. What the bank will do though, is cover a charge or check if you happen to be out in the middle of nowhere and need $20 of gas to get back home and not be stranded, or cover an expensive dinner you need to pay so you don’t look like an idiot. Many business accounts and people with larger balances/income overdraw their accounts by the thousands, and the super rich by millions because that’s what banks do, they lend money. There is an inherent risk to that. So, is it really that unsound that they charge a $35 overdraft fee when they are lending you the money to get that gas, or buy that dinner? You don’t even have to pay it as long as you cover it anyway. It was your mistake to overdraw in the first place too, lets be honest.
So yeah, when you can hold your money in a nationally regulated, FDIC insured bank that will provide you all the free access to your account you would ever need, free debit cards, statements, checks, allow you to write money orders, cashiers checks, and bank checks, wire money to relatives or anybody else at other banks, send money to your family in another country that need it to eat, provide overdraft protection (giving you the option to even overdraft or not), track every transaction and balance you have ever made for your entire life for free, give you atm access all across the country and internationally, provide you with checks, give you the ability to positively affect your credit score through good balance histories, provide internationally recognized credit cards, give you free airlines miles and cash back just for spending your money, possibly give you a kick ass mortgage rate (my bank is in the 3% and I have seen 2.88%, wtf wow) and 100% cover any fraudulent charges you incur so you never have to worry about people stealing your money ever, and people will complain that $5 a month for that is outrageous when they could eliminate it they made $500 a month…
yeah, cry me a river…
On a more selfish note, employees at banks have to deal with people that don’t understand overdraft fee’s, or flip out over that $5 , and are randomly surveyed every other day. At some banks, if your survey scores are below a certain percentage an employee can be denied promotions or fired just cause some redneck asshole wanted to lash out over his precious $5, potentially wasting years of a persons life or halting their career just when an opportunity came up. Those surveys have to be perfect too. I know at the bank I work at if you get a 24/25 it is a fail and if your branch gets too many everybody automatically loses a bunch of their quarterly bonus. So, please, if you get surveyed at a bank, just give the person 100%, you could be saving their job, getting them promoted, or more or less giving a bunch of people hundreds of dollars.Thank you :tup:
My complaint was for fees on low balance accounts without regular minimum-amount deposits. If they took out those fees, how much would it really hurt their bottom line?
And complaints I’ve seen about overdraft fees have usually been from people that were getting an overdraft fee triggered from fees that the bank was applying to low balances, or from other shenanigans relating to how the money hit the person’s account.