Comments on: When checking fees replace overdraft fees http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: HBC http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16865 Sat, 17 Jul 2010 19:47:02 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16865 It’s not like money belongs to people, is it? The best way to rob a major bank is to own one.

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16861 Sat, 17 Jul 2010 13:47:36 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16861 Exactly, norge3. I bank at a small community bank with simple products and low fees. I’ve always been suspicious of the “relationship banking” packages pushed by the larger banks, and even after you qualify for those packages you don’t get better rates or better service than the community bank offers.

Of course I have to keep my brokerage accounts at a different institution than my bank accounts, but that isn’t so terrible.

]]>
By: norge3 http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16860 Sat, 17 Jul 2010 11:37:56 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16860 Might this portend ways for financial institutions like credit unions to compete more for this segment of the population?

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16859 Sat, 17 Jul 2010 09:03:43 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16859 sbenard, perhaps your mom doesn’t NEED all those fancy features that come with Wells Fargo’s Premium Account? And even for that, it requires just a $25,000 balance not $100,000, for banking services. Unless she is taking advantage of that no-custodial-fee full service IRA?

If all she wants is basic banking, then keep a $1000 minimum balance and she can get free checking as always. If she is doing something more complicated, she ought to either keep enough money in the account that it isn’t a waste of time for all parties involved or she should switch to an institution with a cheaper cost structure.

I disagree with wow, they aren’t trying to take advantage of the unsophisticated. Your mother is in their PREMIUM product, for those with complicated needs. That’s expensive for them to maintain.

]]>
By: wcw http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16836 Fri, 16 Jul 2010 17:55:15 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16836 felix, there is no chance that banks will ever become less hated. Their businesses to maximize profits must treat retail clients as tenants whose rents shall be raised to the maximum the market will bear.

sbenard, that’s not Congress, that’s maximizing profit as above. WFC has decided, rightly it would appear, that your mother is unsophisticated. Unsophisticated clients get gouged the most. I haven’t read Bove’s analysis here, but if it resembles yours, it’s just as wrong.

]]>
By: Brutus5000bc http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16835 Fri, 16 Jul 2010 17:24:32 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16835 Does Felix is still believes that the pre fin-reg system subsidized the poor and the new system will exclude them?

This article notes that the poor may not have access to the internet. Having worked with poor communities, I can tell you that this is not the case. Many get access via the library, coffee shops, their phones, friend’s homes, etc. The fact is that getting free access is easy, but having home access is a small luxury.

Pre fin-reg, I have seen clients, who are not financially savvy, get ROBBED by their banks. I am quite happy that the bill will remove many of these excessive fees.

Overall, we should be happy that the recent banks offerings suggest that they are going to support ebanking. There is no reason for a bank to even have a physical presence. Commercial banking, especially checking, is supposed to be a boring, boring business. All indications suggest that the fin-reg bill means lower costs for the poor and the wealthier clients.

]]>
By: sbenard http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16834 Fri, 16 Jul 2010 17:17:56 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16834 Wells Fargo sent my mother a letter, which she showed to me. It said that it would now cost $360/year for the checking account that used to be free — unless — she maintains deposits of at least $100,000 with them.

A few days ago, Dick Bove, a prominent Wall Street analyst, said that 10 million Americans will lose their banking services because they can no longer afford them, as a consequence of this bill.

Thanks, Congress!

This is a perfect example of how government hurts more people than it helps!

]]>
By: Ademanaonge http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16831 Fri, 16 Jul 2010 15:44:24 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16831 My guess is that this could lead to account consolidations for many Americans. Many banks and credit unions will waive these monthly fees if you have a certain dollar amount on deposit, or use a debit card or credit card. In short, they’ll waive the fee for those that use the institution as one of their primary financial institutions. Once consumers start to see their fees, they should rationally reconfigure their finances to move funds to banks or credit unions with low or no monthly fees. I’m not sure the effect will be all that great. Many of those smaller accounts are not all that profitable, as I understand it.

]]>
By: ajw http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16830 Fri, 16 Jul 2010 15:24:54 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16830 I’d be willing to bet that they would be happy to offer older statements – for a fee. Just a guess.

]]>
By: drewbie http://blogs.reuters.com/felix-salmon/2010/07/16/when-checking-fees-replace-overdraft-fees/comment-page-1/#comment-16828 Fri, 16 Jul 2010 15:03:34 +0000 http://blogs.reuters.com/felix-salmon/?p=4750#comment-16828 I don’t know if all banks are doing this, but 5/3 is offering the chance for customers to opt in to overdraft fees. They dress it up as a service, with at least two different pitches. One is that you’ll always have money to buy gas, even if you don’t. The other is that it’ll save you the *embarassment* of having your card declined in front of people, at $35 a pop.

]]>