Banks Threaten To Charge You For Saving Money

[xchrom]

http://www.commondreams.org/view/2013/11/26-1




In an effort to protect their record profits, banks might soon charge you for the privilege of having a savings account.

I know what you're thinking: Banks already charge customers outrageous fees for the privilege of having bank accounts. But if the Federal Reserve dares to try and help the economy by cutting a special interest rate it pays banks, fees could get even more outrageous, the Financial Times reports (subscription only). Such a move by the Fed would lose banks some easy money, and they could take the difference out of their customers' hides.

The Fed is desperately trying to find ways to dial back on its $85 billion per month in bond purchases, an extreme stimulus program known as "quantitative easing," while still supporting the economy. One possible approach would be to stop paying banks a tiny interest rate for money they store at the Fed for safekeeping. The idea being that banks would be more inclined to put money to work with lending and other stuff that helps the economy.

But according to banks, that tiny Fed interest payment is the only thing that helps banks break even on savings accounts and other deposit services they provide. In order to protect their multi-billion-dollar bonuses and bank profits -- which have bounced to record highs since that financial crisis the banks helped create, a crisis from which the Fed and the American taxpayer bailed them out -- banks will sadly have no choice but to punish their customers.

[JaneyVee]

1. Great. I love buying my own money.

[a kennedy]

3. I don't understand that, it's just wrong.

I love my credit union.

[Trillo]

2. More folks will be closing their bank accounts.

I know that some employers only do direct deposit, so that seems to be an anti-competitive structure of benefit to banks. Doesn't the government pay employees through direct deposit?

The corporatism is so brazen.

[Shankapotomus]

4. As a related aside:

Please support the Occupy Money Cooperative.

About The Occupy Money Cooperative http://www.occupycooperative.com/ via @OccupyMoneyCoop

[xchrom]

6. +1

[hobbit709]

5. CREDIT UNION! CREDIT UNION! CREDIT UNION!

[LuvNewcastle]

8. I was going to say the same thing. Stop getting fucked by the banks!

[rhett o rick]

10. I absolutely agree but realize that's only a temp solution. The banks will get their Congress to

punish Credit Unions for cutting into their profits. We need progressives in Congress and the WH.

[packman]

14. Best thing I did-

started banking at Credit Unions. First thing, refinanced credit cards from 18% to 2.99% , saving close to $380 in interest which I am now applying to the principal. THen financing a new car thru them. The Credit Union made it possible for me to see a light at the end of the credit interest hole I was in. Best move ever, should have done it years ago.

[Capt. Obvious]

7. That's why I save my money in my mattress

[LuvNewcastle]

9. That's exactly what Captain Obvious would say.

[Scuba]

11. Two words: Credit Union

[ReRe]

12. I've been wondering what to do...

... with that worn out flame retardant mattress. Just try it. What do we have to do, put the little bit of savings we have left in a Swiss-effing-Bank account? Let 'em try it.
There'll be a run on the banks and oops... down goes Wall Street.

[Ed Suspicious]

13. There absolutely will be a run on the banks. I will not pay for the privilege of them

making a return on my money.

[ReRe]

15. They think...

... people are going to pay them for using our money to make money for them. How absurd is that? They are going absolutely crazy on Wall Street.

[LibDemAlways]

16. Interest rates on savings suck so bad

now that the mattress is a viable alternative. Charging for a savings account would negate the few pennies added in interest. At .08% people are already being screwed over by the banks.

[W T F]

17. You have a choice. This website will show you the closest Credit Union to you,

Anyone can join. [link:http://www.culookup.com|

[mike_c]

18. thankfully, my credit union would never do something like this....

eom