Not from my money and that's all that's important to me.
Take a very close look at the back of every check cashed when you get your monthly statement in the mail. You will see that your hard earned money is
being deposited at a big bank.
When you pay your electric bill, where do you think the electric company deposits your check? A big bank. They don't use small, community banks.
How about your cable bill?
Do you ever pay for gas with a credit card? Chances are, Chase PaymentTech or First Data (owned by Bank of America) is earning a 2%+ fee on every
credit card purchase.
How about your mortgage? To what bank do you pay your home mortgage? Good chance it's a big bank, as they carry the vast majority of home mortgages
in this country.
So, yes, go ahead and keep your measly $300 in the local credit union or community bank, and continue to enrich the big banks when you pay everyone
else with your hard earned paycheck.
The point is: Every time you write a check, or pay a bill, or use a credit card, there is a very, very high probability that the bank on the
receiving end is a big bank. Again, take a look at what banks cash the checks you write.
I write a $25 check to my church every week. Where does the church bank? A mega-bank. So that's $100 every month sitting in the mega-bank.
I think it's time we go back to the old days where we put nooses outside the banks and government buildings when someone in them isn't doing their
jobs the way we like them to.
Yeah, those darn tellers. Gotta keep an eye on those $10 per hour tellers. And that branch manager earning $30,000 per year. Bad folks. Beware.
We had a free account with popular bank in our town, that we opened back about 3 years ago. Last year we got a letter saying that they were going to
start charging us for our "free account".
With interest rates at historic lows, banks are flush with deposits, especially the big banks. They have liquidity coming out their ears. They don't
need more deposits.
The real problem is that the industry as a whole has always given away freebies for the sake of taking market share from competitors-- things like
free checking, free online banking, free debit cards, etc. The bank would earn income from other ways -- such as interest income on mortgages, credit
card processing fees, etc.
That is all changing now, especially given new legislation from Washington. The landscape is radically different now.
For example, the banks used to be able to charge vendors a fee for taking credit cards. With the Durbin Amendment, backed by Wal-Mart, these fees
have been drastically reduced.
Some say - Hooray for business! But guess what? The result is that the banks lose billions of dollars due to this legislation, and now the banks --
all in the name of transparency -- are saying that they will pass on these costs to consumers in other ways.
There is, believe it or not, a cost structure to running a retail bank branch. There is a cost for using Online Banking. There is a cost for using
an ATM machine. There is a cost for hiring a teller to take your cash and make a deposit. These costs have skyrocketed exponentially in recent years
for 2 reasons: low interest rates, and record losses on interest income due to defaulted loans that no longer pay interest.
So, now, banks are flush with deposits, and being strangled by Washington interference on the way they charge fees. What will banks do? You will see
more and more that banks will be up front and start charging fees for services that used to be free. Get used to it. It is going to happen more and
more in the upcoming months and years.
Also, guess what? That local bank that gives away freebies? They don't last long, because they don't make enough money to be profitable. Big banks,
on the other hand, have hundreds of analysts and accountants that study the costs of everything, and as a result, they fully understand their true
They realize that you cannot run a business by giving away products and services for free. That's how they got to be so big - Because they understand
there is no free lunch in business, and you have to charge fees to stay afloat. Those banks that don't charge fees eventually go under.
on 11-7-2012 by CookieMonster09 because: (no reason given)