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Old 10-11-2011, 01:41 PM
 
4,068 posts, read 4,529,027 times
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Quote:
Originally Posted by Antlered Chamataka View Post
I wonder what will happen if the credit unions start charging money, becoz believe it or not, in a world of evolving banking, nothing is going to be free forever, and that includes stone age institutions like credit unions too. At some point, they need to invent the wheel too and move forward.

And that's what is making me chuckle at this outrage.

If people think they can park their money for free in some place, they might as well dig a whole beside the dog kennel and put it in there, right? What is the need for a bank even?
People just don't like doing business with criminals.
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Old 10-11-2011, 03:00 PM
 
29,458 posts, read 33,670,600 times
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Saw an interesting piece on one of the financial shows recently. Prior to Dodd/Frank banks didn't make or loss money on 50% of checking accounts. With the new changes already written that number goes up to 70% of checking accounts not being profitable. As the unprofitable accounts flow from the big banks to credit unions and community banks their balance sheets will change and guess what! Banks are and can be selective about their client base by using fees to influence their customer base. Just like deciding to close branches in areas that aren't as profitable can also have a desired impact. The unfortunate point he also made was that late fees were the easiest way to make unprofitable accounts more profitable. He pointed out that some account holders kill them with bounced checks etc that they never make good etc, along with overdraft fees never paid. That might help explain why some banks require auto monthly deposits as part of their requirements for free or minimal cost accounts.
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Old 10-11-2011, 03:02 PM
 
Location: Wherever women are
19,022 posts, read 24,656,831 times
Reputation: 11309
Quote:
Originally Posted by TuborgP View Post
Saw an interesting piece on one of the financial shows recently. Prior to Dodd/Frank banks didn't make or loss money on 50% of checking accounts. With the new changes already written that number goes up to 70% of checking accounts not being profitable. As the unprofitable accounts flow from the big banks to credit unions and community banks their balance sheets will change and guess what! Banks are and can be selective about their client base by using fees to influence their customer base. Just like deciding to close branches in areas that aren't as profitable can also have a desired impact.
But there's a bigger problem than that.

Reduction of clientele is directly proportional to reduction of assets the banking institution holds.

It's technically a calibrated bank run where people pull their money out and shut their accounts down.

Reduction of assets is not good.
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Old 10-11-2011, 03:11 PM
 
Location: The Triad (NC)
26,783 posts, read 57,742,087 times
Reputation: 29139
Quote:
Originally Posted by Antlered Chamataka View Post
Reduction of clientele is directly proportional to reduction of assets the banking institution holds.
Reduction of assets is not good.
And if that was happening it would be disconcerting.

Singlelady seems to think that it is... but I am yet to see any evidence that customers with even modest deposits (above the minimums needed to avoid extra fees) are leaving in any substantial number; let alone the customers with actually substantial deposits and other business the Bank makes money with/for.

Anyway, I don't know what a reasonable allowance for costs associated with managing an account are but I'm sure it is far more than the $30 that $1500 on deposit @2% represents. That has to be made up somehow.
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Old 10-11-2011, 03:57 PM
 
5,464 posts, read 8,152,051 times
Reputation: 7254
Quote:
Originally Posted by Antlered Chamataka View Post
I wonder what will happen if the credit unions start charging money, becoz believe it or not, in a world of evolving banking, nothing is going to be free forever, and that includes stone age institutions like credit unions too. At some point, they need to invent the wheel too and move forward.

And that's what is making me chuckle at this outrage.

If people think they can park their money for free in some place
, they might as well dig a whole beside the dog kennel and put it in there, right? What is the need for a bank even?
"Park my money for free"

Are you saying you EXPECT to pay to let others use your money?

If that's the case... do you have a couple million you want me to hold!?!


IF I were charged to 'use MY money' I'd pull it out and put it with the cash I keep in the gunsafe.
But then, I keep low 5 figures in the bank at all times.
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Old 10-11-2011, 04:22 PM
 
Location: Wherever women are
19,022 posts, read 24,656,831 times
Reputation: 11309
Quote:
Originally Posted by Themanwithnoname View Post
"Park my money for free"

Are you saying you EXPECT to pay to let others use your money?

If that's the case... do you have a couple million you want me to hold!?!


IF I were charged to 'use MY money' I'd pull it out and put it with the cash I keep in the gunsafe.
But then, I keep low 5 figures in the bank at all times.
That's exactly what I said, dig a hole and bury it in your garden inside a chest. And when you get paid, have your employer deliver cash at your doorstep
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Old 10-11-2011, 10:44 PM
 
5,464 posts, read 8,152,051 times
Reputation: 7254
Quote:
Originally Posted by Antlered Chamataka View Post
That's exactly what I said, dig a hole and bury it in your garden inside a chest. And when you get paid, have your employer deliver cash at your doorstep
Gunsafe's easier.
Well, since there WILL be a bank that doesn't try to charge me to have the use of my money... I'll not worry about it...
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Old 10-11-2011, 11:41 PM
 
23,886 posts, read 31,097,479 times
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Quote:
Originally Posted by JBtwinz View Post
As much as I don't like the fees, how many think nothing of five dollar latte's at Starbucks everyday?
I think it's far too expensive. I never go in there.
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Old 10-11-2011, 11:45 PM
 
23,886 posts, read 31,097,479 times
Reputation: 28524
Quote:
Originally Posted by Antlered Chamataka View Post
I wonder what will happen if the credit unions start charging money, becoz believe it or not, in a world of evolving banking, nothing is going to be free forever, and that includes stone age institutions like credit unions too. At some point, they need to invent the wheel too and move forward.

And that's what is making me chuckle at this outrage.

If people think they can park their money for free in some place, they might as well dig a whole beside the dog kennel and put it in there, right? What is the need for a bank even?
Are you serious? You better believe I expect to "park my money for free". Banks make their money off of my money. I absolutely will not pay a bank a fee to "hold" my money.
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Old 10-11-2011, 11:53 PM
 
323 posts, read 733,641 times
Reputation: 264
It's always been free to park money in the bank... Chamataka is just being ignorant / arrogant because he has an offshore account (which charges people to store their money) and feels everyone else should have one as well.
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