# Bank Took Away...



## becky3086 (Aug 6, 2011)

Free Checking. :scratch Now they are charging us $5 a month to use our debit card and $7 a month if we don't keep a monthly $500 balance or have direct deposit (which I do). I don't know a thing about money, investing or business but it seemed to me that at a time when you want people to actually keep banking with you, you might not want to start charging them all sorts of fees. However, it is possible we are too used to our cards now because my first thought was "Let's take the money all out," :club: and my second one was, "But then I couldn't use my card!" :ignore:


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## IndigoLight (Apr 15, 2010)

Yes, I was helping an elderly friend open a new account recently and, the bank manager said that a new law regarding the use of debit/credit cards was past, and the banks lost revenue they used to collect from business owners for every time someone used a card. 
So, naturally , they will collect it from consumers now.
In Florida it starts this coming October 1st.


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## Frugal_Farmers (Dec 13, 2010)

Of course, we get to help them pay dividends to their shareholders.


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## partdeux (Aug 3, 2011)

Credit Unions are your friend


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## crazychickenlady (Jun 30, 2011)

Can you shop around for a new bank? I don't think that they are all doing this. You don't want to change banks frequently, because it is not good for your credit rating. But it is ok to change if you find a better deal.


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## ZoomZoom (Dec 18, 2009)

I wouldn't stay at a bank that charged those fees. Free banking with $500-1000 min balance or no banking.


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## efbjr (Oct 20, 2008)

*Way to go...*



partdeux said:


> Credit Unions are your friend


I posted in another thread at this forum how I cashed a check from my employer at his bank. (I do not have an account there.) The check was written on an account started at that branch, the check carried the logo of that bank. Since I did not have an account there, hey charged me $5 to cash the $60 check.  A friend of mine cashed a $30 check he got for mowing lawns. Same deal, check written on another local bank, he had no account with them, they whacked him $7 to cash the check! :gaah:

These sob's are making billions(?)/trillions(?) off of us. Stick to a credit union. They don't pull this crap because each depositor is also a member/owner of the
credit union! :2thumb:


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## CulexPipiens (Nov 17, 2010)

partdeux said:


> Credit Unions are your friend


:2thumb::2thumb::2thumb::2thumb::2thumb:

We changed all of our accounts from big name bank to local credit union. It was a toss up between them and a small 6 branch local bank. Both were very competitive, had minimal fees and weren't out to get you like the big banks. The credit union won out as they also support local activites in our community with donations and such.

We now get MORE interest on our money and are getting to know the people who work there instead of seeing a new bank employee everytime we go (like at the big bank). The only think we lost was free checking however the increase in interst has easily made up for that. Finally the minimal account balance is $25. At the big bank, to keep free checking, it was $2,000 (pooled across checking and savings).

We're so happy we changed.


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## TheAnt (Jun 7, 2011)

Our bank, US Bank, started doing this as well but if you keep a balance of 1000.00 or more they waive it. If they are available in your area you might check them out.


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## PamsPride (Dec 21, 2010)

Credit Union user here too! $5 minimum balance. Debit overdrafts automatically go onto our credit card (through them) for a $3 transfer fee.


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## Clarice (Aug 19, 2010)

We currently do not have a bank. Deal only in cash. We will be forced by the government to open an account before March 2013 for our social security payments to be deposited. We plan to go with the Credit Union at that time.


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## BillS (May 30, 2011)

Banks used to make money every time you used your debit card but I believe that's changed now. I saw something about legislation going through that would limit the amount banks can charge stores for someone using their debit card.

The fact is, banks lose money on their least valuable customers. They put up with it because they want you to get a mortgage and car loans from them. Otherwise, they don't make enough money from the interest on your checking account to cover the cost of clearing your checks and debit card transactions.


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## The_Blob (Dec 24, 2008)

just about every bank around here has no fee, no minimum balance checking :dunno:

I swap banks frequently to take advantage of "free stuff" promotions...

(usually one of the reqs is that you cannot have had an acct there in the last 6 months... no problem :2thumb:  )


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## TechAdmin (Oct 1, 2008)

I had the same thing happen. I looked into the cost of Money Orders and it costs me less to just do it that way.


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## CulexPipiens (Nov 17, 2010)

BillS said:


> The fact is, banks lose money on their least valuable customers. They put up with it because they want you to get a mortgage and car loans from them. Otherwise, they don't make enough money from the interest on your checking account to cover the cost of clearing your checks and debit card transactions.


I'm kind of skeptical on that... one computer asks the other computer to transfer funds and it does (check clear, debit transaction). Other than upkeep on the computers there is no real cost. It's not like they had to hire more people to manually process anything.


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## ZoomZoom (Dec 18, 2009)

CulexPipiens said:


> I'm kind of skeptical on that... one computer asks the other computer to transfer funds and it does (check clear, debit transaction). Other than upkeep on the computers there is no real cost. It's not like they had to hire more people to manually process anything.


Although I agree in the general concept that it's cheap since the computers are doing all the work, being a mainframe developer, I can assure you that those computers aren't cheap to buy and maintain. Banks and hospitals in general are the big users of mainframes and require processors that run 500,000,000 instructions per second or faster.


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## tsrwivey (Dec 31, 2010)

CulexPipiens said:


> I'm kind of skeptical on that... one computer asks the other computer to transfer funds and it does (check clear, debit transaction). Other than upkeep on the computers there is no real cost. It's not like they had to hire more people to manually process anything.


Tellers, maintenance on the ATM machines, paper/postage for statements, dealing with overdrafts... None of which is free. Banks are a business, in existence to make money, not to provide freebies for folks. :dunno:


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## TechAdmin (Oct 1, 2008)

tsrwivey said:


> Tellers, maintenance on the ATM machines, paper/postage for statements, dealing with overdrafts... None of which is free. Banks are a business, in existence to make money, not to provide freebies for folks. :dunno:


Not enritrely true, if that were the case there would be no incentive to provide interest.

We used to do them a favor by putting money in their banks. It allowed them to lend at interest and make a profit.

Now they make a profit off loans, pens in the lobby, everything, and considering they are still lending my money for profit I find it insulting they would charge me for anything. I'm doing them the favor, no the other way around.

We need to realize this as a whole. Put them back in the position of servitude they used to be in and force them to stop ruining people's lives through finances.


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## LincTex (Apr 1, 2011)

partdeux said:


> Credit Unions are your friend


:2thumb: me too!


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## CulexPipiens (Nov 17, 2010)

bczoom said:


> Although I agree in the general concept that it's cheap since the computers are doing all the work, being a mainframe developer, I can assure you that those computers aren't cheap to buy and maintain. Banks and hospitals in general are the big users of mainframes and require processors that run 500,000,000 instructions per second or faster.


I run a data center for my employer. Upwards of 30 physical servers here (lots more virtual) and another 20+ in a few additional location. At our main HQ (over in europe) we've got a few hundred more. I've also got experience developing in a wide range of languages including a few on the old IBM mainframes, although it's been decades since I did anything on them.

Consider that a "basic" server with a six core processor can exceed 100 Gigaflops and the GPUs from NVidia and AMD can go from over 200 to about 500 Gigaflops, and their latest offerings are hitting a Teraflop, a need of 500 million ops per second is not difficult to achieve with relatively average equipment. Yeah, I'm simplifying this a bit but I still stand by my skepticism that the technology costs them more rather than less to process our transactions. I believe if it really did they wouldn't be implementing it.

I just did a search on ATM costs... Found a site (ATM Depot) with real interesting stats. Taken straight from their site:

-------------------------------------
If you don't have an ATM, you can review our ATM Machine equipment options or call us for advice.

Let's say for example you purchase a basic Tranax Hantle ATM for $2,000.00 (including shipping). You can install it yourself, but we recommend you let us arrange to have a professional install it and train your staff.

This ATM needs its own phone line (but dials a toll free number only) or set it up to use your Internet Service. We also have a Triton ATM for under $2,500. You will probably invest between $2,250 - $3,500 in good ATM machine by the time you're done installing the phone line, professional installation, signs, or anything else extra you may want for your ATM Business.

Surcharge Income - Example
Surcharge Amount - $2.00
Your income per use - $2.10
3 uses per day - $6.30
30 days - $189.00
24 months $4,536

Your income per use will always be equal to or greater than what you charge since ATMDepot shares the backend interchange based on your ATM Usage.
Even if your ATM is only used three (3) times a day and you charged $2.00 (typical US average), it would only take 12 months to pay for itself (12 month ROI) depending on the model of ATM your purchased.
---------------------------

So, if their stats are legit, then an ATM is definitely cheaper than hiring another teller and potentially even a profit center. Heck if they had to replace it each year and spent 4K each time that's a far cry from a teller salary.

BTW, I find it very interesting to see the cross section of preppers and what their "day" jobs are.


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## Journey (Feb 16, 2011)

Has anyone used ING Direct? No fees for their chequing, plus they pay interest (not that it would be much). I would consider a credit union if I were sure we wouldn't be moving again, but I'm not. With ING though we can use the ABM at the credit union near us and deposit and withdraw for no fees as well. Seems like a good deal for us but I don't know of anyone who has used them. It's silly but having the $8+ in monthly fees would be helpful to have back.


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## Idaholady (Apr 24, 2010)

Well, if you are disgruntled now with your bank, just wait until after the elections! Ever hear of HR4646? A 1% tax on all bank transactions. 

This is another Obama tax slipped in while we were asleep. His finance team is recommending a one percent transaction fee. And, this is on ALL TRANSACTIONS; whether is it your direct deposit, regular deposit, and on every check you write. 

Oh, and by the way, if you receive a refund from the IRS next year, you guessed it. You will pay a 1% charge on that money just for putting it your bank. 

Remember, ANY money, check, cash or whatever, no matter where it came from, you will pay a 1% fee if you put it in the bank.

Now, does that frost your cake or what?????


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## goshengirl (Dec 18, 2010)

Idaholady said:


> Well, if you are disgruntled now with your bank, just wait until after the elections! Ever hear of HR4646? A 1% tax on all bank transactions.
> 
> This is another Obama tax slipped in while we were asleep. His finance team is recommending a one percent transaction fee. And, this is on ALL TRANSACTIONS; whether is it your direct deposit, regular deposit, and on every check you write.
> 
> ...


Seriously?!?!?!?!!!!!!

I have a feeling if I research the exact percentages of what taxes the British levied against the colonists that started the Revolutionary War - I have a feeling we're way past that now...

I'm so spitting mad!


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## becky3086 (Aug 6, 2011)

You guys are so well informed. I don't have the slightest idea what credit unions do. I never really used the bank until about 5 years ago. I used to get money orders for everything. It is not nearly as convenient and take another trip across town to the post office. We don't live in town. I don't think the other bank in town offers free checking and even if it does, when one starts charging a fee it doesn't take long for the rest to catch on.


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## BillS (May 30, 2011)

CulexPipiens said:


> I'm kind of skeptical on that... one computer asks the other computer to transfer funds and it does (check clear, debit transaction). Other than upkeep on the computers there is no real cost. It's not like they had to hire more people to manually process anything.


I used to work in the banking industry. It costs them to clear checks. Everything they have to do costs them money. Everybody seems to think that not playing interest on a $100 checking account should pay for everything but it doesn't. Unfortunately we have a society today that knows very little about business and thinks everything should be free.


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## Drakstar (Jan 11, 2011)

H.R. 4646 [111th]: Debt Free America Act (GovTrack.us)

Not an active law. Yet.


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## CulexPipiens (Nov 17, 2010)

BillS said:


> I used to work in the banking industry. It costs them to clear checks. Everything they have to do costs them money. Everybody seems to think that not playing interest on a $100 checking account should pay for everything but it doesn't. Unfortunately we have a society today that knows very little about business and thinks everything should be free.


I don't doubt it costs them, but I believe the cost is very little plus they are making money with my money.

Case in point. I opened an interest earning savings account for my granddaughter with $770. After a few months I noticed the balance had not changed. I looked into it and found out that it was earning .007 cents each month. Well, instead of adding so in month two it would have .014 cents they instead round (down) each month so effectively the less than one penny of interest they were giving me was being rounded back into their pocket anyway. I was not writing checks on this account. There was no paperwork. No transactions. Nothing.

During this same time I had a personal savings account with around 20K in it and would earn about $2 per month. Thats 1/100th of 1 percent. Minimal transactions against this account, mostly just additions. Now that same 20K could easily have been loaned out by them for 6% to some guy buying a car and they could have given me 1% and still made a very reasonable profit (at least in my mind) of 5% of 20K. (simplified example but it illustrates my point)

I'm not unrealistic. I don't expect them to give me a 5% return in this economy but to give practically nothing and then tack on all sorts of fees on top of that? It's simply wrong and begs the question of "When is enough profit enough?".

Since you have worked in the industry and have direct experience could you share more details? Just what does it cost them to clear a check?


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