General Credit Topics

[SanFranMatt]

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jimbo831 wrote:

Many banks still make money the old fashioned way, by earning interest on loans they issue.  They use the money I store in their bank as the means to issue these loans.  So I expect them to provide me with free services to store my money, in exchange for giving them my money to lend out and earn interest.  This is how banking has worked for hundreds of years.  Charging outrageous fees for basic services like writing checks and using a debit card are relatively new and just an example of greed.  Again, the banks are NOT losing money without these fees, they just want even more.  I am happy to take my business and my money to another institution that does not have this issue.

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Actually banks do lose money on some of the basic features.  They're loss leaders for the bank.  When it comes down to it, if you have plenty of money in the bank then you don't have to worry about fees.  If you have a savings account with a hundred bucks in it, the bank is losing money.  They're not making a profit by loaning that hundred bucks; account maintenance and overhead are more than the interest they'd get.

I agree that you should look for the bank that makes the most sense for you.  If one bank offers it for free, then move your money.  Just like if one cable company charges a hundred bucks a month while another charges 80 bucks a month (for the same service) then go with the cheaper option.  But I just get a kick out of people that say XYZ company shouldn't charge fees because they make enough money - as if anyone has the right to decide how much money a company can make (whether it's a bank, apple, microsoft or the local bagel shop).

[jimbo831]

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SanFranMatt wrote:

But I just get a kick out of people that say XYZ company shouldn't charge fees because they make enough money - as if anyone has the right to decide how much money a company can make (whether it's a bank, apple, microsoft or the local bagel shop).

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I can't speak for other people.  I may not have the right to decide how much money they can make, but I surely have the right to decide how much money they will make off of me.  For me, any monthly bank account fees, or fees for any basic services that I use, are instant ways to lose my business.  Until the day comes that there is nobody offering these things for free, I will find the company that does.  I am just waiting for an excuse to move all my banking over to PSECU, but really, I am pretty happy with PNC and my Virtual Wallet.  I am just mad at them because they won't approve me for a CashBuilder card!