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Old 07-10-2010, 11:37 AM
 
Location: SoCal desert
8,091 posts, read 15,385,554 times
Reputation: 15036

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Texas User wrote in another thread :
Quote:
I see over 4% APY for Checking Account but there are too many things you have to do like withdraw certain amount, 10 transaction a month and 1 direct deposit.
And it got me wondering. I can't imagine shopping 10 times a month, or eating out 10 times a month.

I never have that much activity on any of my accounts. My paycheck is direct deposited once a month. I have about 7 to 8 direct credits taken out. I go to the bank about once every 2 months to withdraw cash. I actually hand-write a check maybe once every 3 months. I don't even own a debit or ATM card. Yes, I'm very boring

Why do banks insist on all these transactions? With the new banking rules, it's not like they're going to be getting people on overdrafts now. (Well, the people that don't opt-in anyway. And the people that watch their balances)

Wouldn't it be easier on the bank - and profitable - if there were less transactions, and less to watch? Why not give high-transaction customers an incentive to stop moving money unnecessarily with minuscule transactions? Why not reward the low-transaction customers?

What am I missing?
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Old 07-10-2010, 12:00 PM
 
15,633 posts, read 26,159,772 times
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The bank's thinking: The less you use your account, the easier it is for you to move your account. The idea of tying you up with debit card transactions (Although frankly, I never saw the idea behind that one, to my thinking it goes through and it's done so what's the big whoop) and direct deposits and automatic debits, means you'll think twice about going to a new bank.

I mean -- my useage? We're self employed so direct deposit is out. But I'd have to change ALL my autodebits. I have about 12... And my bank is out of the way, so I mail in my deposits. They used to pay for postage, but they don't anymore.

The other reason I haven't gone to a closer bank -- most banks want me to open a small business checking account. We are a small business, but we don't have the sort of activity that requires us to have a small business checking account. We'd get fee'd out the wazoo with a small business checking account. A personal account opened with our DBA is better... but the banks want that money....

But the biggest reason we stay where we are? I bought two boxes of checks because they were cheaper that way, and I have still have tons left.
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