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Banks couldn't care less about your deposit, they get all they need from daddy fed.
Sorry to revive a "dead thread"; someone reped my OP and as long as I was here I wanted to confirm that what Mathjak said about the banks is true; they DON"T care about your deposits, hence they have absolutely no incentive to pay any interest on deposits. In fact I'm surprised they are not charging us to keep our money with them. To wit:
I posed the question I asked in my OP to a vice-president at B of A who I was transacting business with: don't youse guys know I am spending my deposits down because youse guys don't pay any interest? Don't you care that my accounts will be zeroed out in about 10 years?
To which he replied a little defensively: "No, actually we don't care. Savers with deposits are shifting their monies over to our investment division to get better returns, which is what we want them to do. Additionally, we make enough from our CC's, late fees and other fees and other "investments" (READ: the FED) that we don't really have to care about paying interest on CD's and the like."
He was very honest and forthright about the whole matter. They really don't care. Hence interest rates on deposits are as high as they're ever going to go.
^^I’ve never had a bank tell me straight out that we don’t want your money, but the ostracized feeling has been there since ~2003.
Well guess what: they’re FOS IMHO. It just doesn’t makes logical sense that a bank has NO NEED for cash.** The name of the Banks game is to make cash appear antiquated so you use credit; but will see what happens after January 2013. My hunch is that we’re going to see some banks’ looking for stable cash going forward.
**I understand the herding to investments; FDIC costs; QEs; debt/loans are money; foreign cash cheaper; etc…
Last edited by DSOs; 11-29-2012 at 10:40 AM..
Reason: added:so you use credit
There is a debt bubble going on. The need to push money into it is now at the expense of savings in CDs etc. I remember when pass book savings paid 5.25%. Very shortly the will be charging you to keep money in the bank.
They need the cash to flow into the bubble to keep it going
If we want to increase our domestic manufacturing base then we would need start buying back our national debt and and have a high domestic savings rate. Loaning out new money isn't the way to go to print new money. We need to start retiring debt faster than we make new debt. Printing cash will do this. You are thinking in terms of public works projects (remembering what you've said else where.)
The government is oversized in the US. We need to downsize it. The problem is that if we cut government spending the economy will implode. We need the effects of a new bubble without having a new bubble. A bubble is assets going up without wages following the trend. If wages lead assets then you have inflation and less debt as % GDP. If we freeze non inflation adjusted government spending and then inflate wages you downsize the government.
The real hope for our manufacturing base is the energy future in natual ags and oil.Basically in the futuure its price wil give a competitive edge. Right now japan and china pay about 14 dollar per unit for what we pay about 3 dollars per unit in natural gas. Just the outflow of moneyy for that energy going out of the country adds to the econmic cost ;just has it has for us in recent decades., Its estimated at 300 billion plus per year staying in the country besides the cheaper cost of energy needed to do anythig really. Our allies will weant to buy fro Us for one rqson;we are a safe supply and have the navy to assrue it o the world's oceans.It is not loss on mnay that this is despite our governamtn beig unable to prodcue a energy policy and i mnay cases actaully trying to retard the oil aqnd gas industry in this country.
Sorry to revive a "dead thread"; someone reped my OP and as long as I was here I wanted to confirm that what Mathjak said about the banks is true; they DON"T care about your deposits, hence they have absolutely no incentive to pay any interest on deposits. In fact I'm surprised they are not charging us to keep our money with them. To wit:
I posed the question I asked in my OP to a vice-president at B of A who I was transacting business with: don't youse guys know I am spending my deposits down because youse guys don't pay any interest? Don't you care that my accounts will be zeroed out in about 10 years?
To which he replied a little defensively: "No, actually we don't care. Savers with deposits are shifting their monies over to our investment division to get better returns, which is what we want them to do. Additionally, we make enough from our CC's, late fees and other fees and other "investments" (READ: the FED) that we don't really have to care about paying interest on CD's and the like."
He was very honest and forthright about the whole matter. They really don't care. Hence interest rates on deposits are as high as they're ever going to go.
Banks are increasingly having private bank divisions with the entry fee often in the 250K up range. These are folks that they can make money off of and there are lots of folks with those assets. The big banks don't want everyone as customers as you have noted.
Not what I have found with banks locally.I think perhaps they now have to have people with some holdings in bank to make their account worth servicing tho. its no different than credit cards.I fact one only has to look at new government rules to see they want banks to charge the person using the service just as they do with credit cards.Its all aprt of teh new consumer protection laws that shift cost to those who use service.
The real hope for our manufacturing base is the energy future in natual ags and oil.Basically in the futuure its price wil give a competitive edge. Right now japan and china pay about 14 dollar per unit for what we pay about 3 dollars per unit in natural gas. Just the outflow of moneyy for that energy going out of the country adds to the econmic cost ;just has it has for us in recent decades., Its estimated at 300 billion plus per year staying in the country besides the cheaper cost of energy needed to do anythig really. Our allies will weant to buy fro Us for one rqson;we are a safe supply and have the navy to assrue it o the world's oceans.It is not loss on mnay that this is despite our governamtn beig unable to prodcue a energy policy and i mnay cases actaully trying to retard the oil aqnd gas industry in this country.
Back to the more cheap fuel. You may have a point. Total debt is a real drag on our economy. It needs to come down. Savings rate needs to com up. In general the more we can reduce the mass of things we use the more we can reduce the cost of doing business. Lighter cars, smaller cars, smaller stuff in general uses less stuff to make stuff with. Lower cost. Less debt does the same thing.
Earlier this year I heard (radio) that banks’ are looking into mandatory “elitist” fees for 100k+ depositor accounts. These special depositors’ will be able to enjoy—in the comfort of a private room—luxury features such as music, wi-fi, & other leisure-class inspiring bullsh*t.
I realize how wacky this sounds & would appreciate/welcome any correction to my post; I’m wondering myself if I dreamed up this ridiculousness.
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