This is an issue that probably frustrates us all from time to time, but never really one that I paid too much attention to. Any time we go to
withdraw money from a bank machine, other than our own, we are charged anywhere from $1.50 to $2.50 or $3. It does seem to be a bit much when you
think about it. On some ATM's, I can withdraw $20 and it may cost me $3 to do so. With a profit of $19 billion dollars in one year, I would agree
that it seems something can and should be waived.
Ideally we can all make it to our own branch and avoid these costs. But it is not always the case. My girlfriend and I have different banks. I'm
with ScotiaBank and she is with the Royal Bank. Her back is much closer and not very far out of the way, while mine is slightly out of the way.
Between red lights and one way streets, it is a huge pain in the ass to make it over to my bank. So most days I just end up withdrawing my money from
her bank. I would be surprised if it were more than $10 a month that I allowed, but still, others have had more drastic experiences.
I had set up my mother's online banking a few months ago when I was home for a visit. I looked through her history, and in two months she had been
billed over $90 on charges alone. She had moved in with my grandmother after a few passings in our family, and since I moved away they have no means
of transportation. All of their income is direct deposit which can be a burden. Rather than paying over $10 for a cab down town to get some money
out, and then home, they prefer to walk up the road to the local establishment and retrieve money from the ATM. I believe the establishment charges
$1.50 and the bank itself charges the same. So that is $3 for every withdrawal. Between the two of them, these add up very quickly. My grandmother,
a senior citizen, on a fixed income is forced to give up a hefty percentage of her pay every week in order to withdraw this money.
In the summer months, they are known to walk to town quite a bit. But it is not much of an option throughout the winter.
Now that my "little rant" is over.. I'll link up the article.
NDP calls for end to fees on ATM withdrawals
ORONTO -- Charging people to use automatic teller machines from a bank other than their own in order to access their own cash is a rip-off that should
be outlawed, New Democrat Leader Jack Layton said Thursday.
In what Canada's big banks dismissed as little more than a display of ignorant rhetoric, Layton said the $19 billion profits the financial
institutions made last year should be enough to waive ATM convenience fees.
"We believe it's gouging when a person comes up and they want $40 or $60 of their cash and a bank is charging them $1.50 or $2, $2.50," Layton said
during an election-style announcement on a Toronto street corner.
"That's a rate of payment which is very, very high - and unfair."
New Democrats will bring forward proposed amendments to the Bank Act, which is currently under review, to prevent banks from charging fees to
customers who withdraw, deposit or transfer their own money through bank machines, Layton said.
He estimated banks make $420 million from charging people to withdraw cash from ATMs.
"Ordinary families work hard for their money," Layton said as he braved the city's coldest temperatures so far this year to stage a news conference
at an outdoor bank machine.
"If they want to take a few dollars out to go to the grocery store, the banks shouldn't be keeping $1.50 or $2 or any of that money."
Link to Article
From ATM's alone they are turning a profit of $420 Million. Is that reasonable?
Business sense tells you that any service is going to come with a charge. I am not against that. But $2 and $3 for every transaction is a little
much. I have little sympathy for banks and would love to see these costs abolished, but I would be shocked to ever hear of it.
I commend the NDP's and Jack Layton for bringing attention to the matter. In my opinion, it is a constant nuance that most of us have come to
[edit on 27-1-2007 by chissler]