B of A gets bright idea: dump free account customers, while US Bank invites them! (deposit, accounts)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Bank of America also charges a 0.3% fee on depositing case more than $7500.
I guess the point is most people have no use for high fee banks as well as high fee brokerages like Edward Jones. If BOA wants to make themselves uncompetitive as a bank they can suffer the consequences when they hemorrhage customers.
Bank of America also charges a 0.3% fee on depositing case more than $7500.
I guess the point is most people have no use for high fee banks as well as high fee brokerages like Edward Jones. If BOA wants to make themselves uncompetitive as a bank they can suffer the consequences when they hemorrhage customers.
Sorry Jay, you need a clue too. Run the math. B of A gets free use of millions of dollars basically at the cost of the juice they run through their computers. Remember, the customers are the only humans involved in the process.
You have detailed access to the B of A financials? You know how much each customer costs? That's a bit surprising, but good for you.
More than likely you don't know how much profit your tiny account brings and are just guessing, like me. Presumably someone at BofA, who actually has access to the numbers, actually did a calculation to see what they should do. Banks are lots of awful things, but short-term stupid with money is not one of them. I'm sure they factored in that some percentage of people wouldn't think about the fees and be hit with them, earning them even more money. Maybe even a few that keep getting hit with fees until the account is zero, after which they will likely get hit with all sorts of penalties. Like I said, banks do lots of awful things.
That is their strategy, for better or for worse. Low-balance accounts aren't big money makers and are probably more trouble than they are worth to a big fancy bank. I'm not sure why that upsets you so much. Are you a shareholder?
Quote:
Originally Posted by Lovehound
You'd be surprised at all the stuff I get for free! I'll give you an example:
Hey, class, everybody who shops at Amazon, raise your hand! Mmmm... I see we have a few Prime addicts like me! I get free 2 day shipping!
But wait, it gets better, it gets a LOT better! Amazon is running an offer, I don't know if the incentive is temporary but the rewards are permanent:
For signing up for my Amazon Visa card I was given $70 gift card balance upon acceptance. Freeeee moneyzzzz!!!
Congratulations on getting Prime for free. I have to pay $99/year :-(
If BoA doesn't want small customers, that's their call. Other banks want them because there is a federal formula that determines how much a bank can loan based upon how much money they have on deposit.
You take a whole bunch of working income level customers who run their paychecks through your bank, all of those small deposits add up to quite a large volume of money that you can show to the federal auditors. BoA apparently doesn't need that volume.
If you don't like a bank's fee structure, shop around and find someplace that is happy to have you.
Sometimes it works out for the bank. Some times it doesn't.
I paid off a mortgage at one of the big banks. I had a checking account there just to keep funds for an automatic pament on the mortgage. The mortgage gets paid off and immediately I get a notice that if the balance on the checking ever goes below $3,000 I get a $12 a month fee. So I closed the checking.
They weren't sorry to see me go, but my son had gone in with me and as soon as they were done with me, he closed 2 business checking accounts, his personal checking account, and a savings account. The bank really wasn't happy about that, but he told them that his mom did a lot of his banking for him and he didn't expect me to drive all over town so he moved his accounts to my new bank.
Maybe not their biggest customer, but he moved a couple hundred thousand out of their bank. I was listed as co-owner on one of the business accounts so it wasn't like the bank couldn't have figured that out.
On the flip side, about things working out for a bank to have small customers, I opened a checking account at Columbia Bank because they were the only bank that had a branch near my beach house and my main residence, so I could put money in at home and take it out to spend at the beach. Definately not a large account. They are wonderful to work with. I have moved to a new state and Columbia has a lot of branches local to me and they just become my main bank because they have been so pleasant to work with when I was just running a small amount through a free checking account.
More than likely you don't know how much profit your tiny account brings and are just guessing, like me.
Frankly, my dear, I don't give a damn! I don't own any banks (or bank stocks) so I don't care. That's between the banks and their shareholders.
Quote:
Originally Posted by jayrandom
Congratulations on getting Prime for free. I have to pay $99/year :-(
Well just get on Amazon and apply for the Amazon Visa card! If you purchase at least $2,000/year on Prime then that's the break even point ($1,980) where the 5% cash back rewards on your Amazon Visa card will have saved you exactly $99. — Notice that you also get 2% at restaurants and 1% everywhere else.*
Apply and get approved and you get a $50 Amazon gift card immediately upon acceptance and 3%/2%/1% cash back rewards. If you join Prime that's 5% instead of 3%. Even if you don't join it's a good deal. If you do join and considering the $50 gift card your first year's Prime will cost only $49. ($99/year thereafter.)
There are many free perqs being Prime in addition to the 2-day shipping! Free video, free music, a free Kindle book each month (your pick of 6 offerings)...
Hell, I spent about $4K on all my shopping, last statement, at least half of which was Amazon.
Put all your cellphone, cable TV, every service you pay for monthly and forget about writing checks. I have my account set on e-statements and auto-pay (direct payment from my checking account).
There are plenty of deals offered by savvy corporations who want to encourage your business. Savvy consumers pick up on these.
* Note that the Amazon Visa card is serviced by JP Morgan Chase, NA Bank.
Your amazon prime isn't free anymore than prime memebers get free shipping, there is a cost or opportunity cost associated with each choice. The amazon credit card excels in the area concerning amazon purchases and that's it as far as I can see
I've found Amazon to be more expensive on a number of purchases lately over the past six months to year. Oftentimes the big box stores will beat them on price for just about everything. Even with their measly 5% cash back.
Why anyone would use a bank instead of Credit Union is a mystery. I haven't used a bank in close to 30 years. In all my years with Credit Unions, I don't recall ever paying a single red cent. For anything. Obviously, if I took out a loan or bounced a check, there would be a fee, but there is no fee for just parking my money there as I use it throughout the month until my next deposit. I use Square for the occasional charged quilt I sell and Square skims a tiny bit off the top, but the Credit Union certainly doesn't charge. For anything.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
