Though financial institutions are not yet turning away customers at the door, they are trying to discourage some depositors from parking that cash with them. With fewer attractive lending and investment options for that money, it is harder for the banks to turn it around for a healthy profit.
In August, Bank of New York Mellon warned that it would impose a 0.13 percentage point fee on the deposits of certain clients who were moving huge piles of cash in and out of their accounts.
Others are finding more subtle ways to stem the flow. Besides paying next to nothing on consumer checking accounts and certificates of deposit, some giants — like JPMorgan Chase, U.S. Bancorp and Wells Fargo — are passing along part of the cost of federal deposit insurance to some of their small-business customers.
Even some community banks, vaunted for their little-guy orientation, no longer seem to mind if you take your money somewhere else.
“We just don’t need it anymore,” said Don Sturm, the owner of American National Bank and Premier Bank, community lenders with 43 branches in Colorado and three other states. “If you had more money than you knew what to do with, would you want more?”
Well, Neatoramanauts? What say you? Does charging money to hold your money seem counter-intuitive, or is this a good tactic for discouraging large-sum depositors from parking away their millions in a vault?
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If banks "don't need it anymore," why do they even pretend they are a business providing a service?
Actually yes. Yes, I would. (Also, sir, may I strangle you?)
I hope every single one of his customers take their money out of his shitty bank.
Want to do something meaningful to protest Wall Street? Close your account with big banks and open one with a credit union. You will be so glad you did.
Penalty for early withdrawal . . . Almost zero interest on my savings, checking and CD's . . . Give bad loans to people who won't pay it back . . . Passing costs on to small business owners . . . Still have scabs on their knees from begging the government to bail their insolvent a$$ out . . . Dumb hours . . . Rotten customer service . . . High interest rates on credit . . . AND NOW THEY WANT TO CHARGE ME FOR A DEPOSIT?
Sorry, Larry, Curly and Moe have already made that movie. At least they made me laugh.
The whole banking system is gridlocked, too nervous to do anything but think up new ways to scam their customers. Perhaps we shouldn't be so surprised with this latest one.
Do we need more proof that the financial/banking system we have in place today does not work? This is getting absurd.
The people that such a policy will effect are the very same people being call "job-creators" by the gop and need to get larger tax breaks because they invest all this excess cash.
I know some bank have started charging for transactions that require a teller which is just really silly.
But on a marketing point of vue : WTF?!!!
My checking account is already a loan from me to the bank at 0% APR, which they then loan out at substantially higher rates. There's no f&*%ing way I'm going to pay them a monthly fee for the convenience of having access to my money.
I've now switched to USAA credit union, and sent SunTrust a detailed explanation of my view of the matter, and pointing out that they're losing--no, they HAVE LOST--a 16-year customer over $12/month.