Comments on: What’s wrong with American banks?

By: Moneywise

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By: Justis Guy

Justis Guy — Sun, 06 Apr 2008 18:44:53 +0000

ATM and other fees are for chumps. If you make no effort to shop for banking beyond the most well-advertised, you’ll get what you deserve. It’s like shopping at a convenience store for groceries — you’ll pay a lot more, and have fewer product choices. Credit unions and other less well-known banks have no fees and even refund fees from others’ ATMs. Transfers are quicker and cheaper, if not free. Finally, why anyone would use an ATM is beyond me, when you can go into any grocery store and get cash back for free, in a safe and secure environment which these days is open 24 hours.

This is one of those “know the local culture” issues. Otherwise you pay the “gringo” price.

By: vinylavenger

vinylavenger — Sun, 06 Apr 2008 18:23:41 +0000

you think that’s bad? banks in south africa charge you a fixed percentage to deposit cash money. can you believe that? what a way to encourage savings in a developing economy that desperately needs it.

By: Enginerd

Enginerd — Sun, 06 Apr 2008 15:07:01 +0000

“Currently, they are working with the govt partners to eliminate the payday loan industry since the poor use the payday businesses instead of banks, since they were not welcome at banks.”

Payday loans are not an example of a business which helps the poor, quite the opposite in fact. http://usgovinfo.about.com/od/consumerawareness/a/paydayloans.htm
A typical loan might last 2 weeks and cost 20%, that’s about 520% APR. And that’s only if you pay on time, and don’t get smacked with their late fees. The business model is to keep people in debt, so they have to keep paying more fees. This may be competition for banks, but it’s a little like competition between two mob factions.

As for why the gov’t doesn’t impose a 2-hour limit on electronic transfers, my guess would be the banking lobby controlling congress. Businesses are not about making the country better, they are about making money for their owners. This is the major flaw of the free market. The counter argument is that everyone working in self interest will always provide the best solution for everyone is simply false, and why anyone still believes that is beyond me.

By: What’s wrong with American banks? at Credit Cards For Bad Credit On Credit Speak

What’s wrong with American banks? at Credit Cards For Bad Credit On Credit Speak — Sun, 06 Apr 2008 11:52:55 +0000

[...] What’s wrong with American banks? I have stopped using checks years ago. But in the US they are still used! Even though debit and credit cards are accepted everywhere, people still use checks. But checks are much more costly for banks than electronic cards. … [...]

By: throbo

throbo — Sun, 06 Apr 2008 10:44:56 +0000

From working in banking for a long time I can tell you that banks make a ton of $$ off the stupid and lazy.

Keep track of your balances like a hawk, realize you are going to get “wacked” for using an ATM that is not your bank’s and shop around. Good banks are out there.

By: Credit Card Debt » What’s wrong with American banks?

Credit Card Debt » What’s wrong with American banks? — Sun, 06 Apr 2008 08:51:14 +0000

[...] BlessnHI impact blockaded using checks eld ago. But in the US they are assist used! Even though entry and assign game are recognized everywhere, grouping assist have checks. But checks are much more pricey for banks than electronic cards. … [...]

By: Not seeing the bigger picture

Not seeing the bigger picture — Sun, 06 Apr 2008 06:35:37 +0000

The banks in the USA are not interested in improving service to ordinary citizens. Things like the Bank Secrecy Acts keep the govt and banks in a close partnership. search for CTR and SAR, the banks in the USA milk regular citizens and answer to the govt and the wealthy. Banks are effective monopolies and at the same time a required utility for most people – people need banks and banks are immune from competition. Currently, they are working with the govt partners to eliminate the payday loan industry since the poor use the payday businesses instead of banks, since they were not welcome at banks. Now banks are seeing money in those poor and want it for themselves. Watch for “not using the USA banking system” to be effectively outlawed in the near future.
http://en.wikipedia.org/wiki/Bank_Secrecy_Act

By: Vegas Vic

Vegas Vic — Sun, 06 Apr 2008 05:43:07 +0000

If I didn’t have alot of money I’d join a credit union.

Since I have money, use one of the first tier banks. They pay me for checking. All ATM use is free. I get free stock trades, free ACH, 24/365 worldwide support, even when I called new years eve, foreign currency services, etc. I think you have to maintain a $250K balance to get it all.