Banks no longer posting deposit rates?

[ultrarunner]

I saw two tid bits of info last week that shocked me.

The average cost of a wedding was $23,000!

The average credit card debt in the US is $15,000! That is just huge. The CC gets paid off each month. $15K is mind boggling.

Later,
Dan

Same here... had to promise my Grandmother when I got my Sears Card at 18 that I would pay it off each month.

My younger brother got his Mastercard at age 16 issued through the local bank... we all had bank accounts and jobs...

The Bank ran a promotion to introduce their new card and my brother applied... the Branch Manager asked him to come in... he said he was going to approve his card with a $400 limit and wanted my brother to know he was sticking his neck out because he admired how we all had jobs and were very responsible. This was 1980

In short... there would be nothing the bank could do if he choose not pay the bill and made sure he/we understood.

I walked into that bank at age 12 with my first paycheck and opened an account... back then... no parent or adult required...

My brother still uses that bank for his business and personal banking...

 

[ultrarunner]

Yesterday I sponsored my Mom and she sponsored my nieces to open up Credit Union Accounts...

The oldest is 10 and they were very appreciative...

There is a special account for minors that pays 7% on the first thousand dollars... the ten year old had already figured out that would be almost $6 a month and told her sisters...

They had/have accounts at a big bank that pay no interest... so to say they were excited is an understatement.

The account also has the option for debit card that the 10 year old was very interested in...

Her Mom said we'll talk about when she gets her Driver's License...

I really want them to get started on the right foot...

 

[chopped]

My one local bank offers a child savings plan but not that kind of interest. I think its a great idea and shows that a bank cares about the people it serves, And overall if far more effective and cost effective than advertising ...It is indeed a form of advertising really..
Lets hope the big banks come to realize they are more than just a clearing house for money.
Oh the bank here just stopped excepting coins, They have a machine that takes them in the lobby now and there is a fee involved.Kind of funny ,,,,a bank ,, and they dont accept money lol:laughing::laughing:

 

[ultrarunner]

My one local bank offers a child savings plan but not that kind of interest. I think its a great idea and shows that a bank cares about the people it serves, And overall if far more effective and cost effective than advertising ...It is indeed a form of advertising really..
Lets hope the big banks come to realize they are more than just a clearing house for money.
Oh the bank here just stopped excepting coins, They have a machine that takes them in the lobby now and there is a fee involved.Kind of funny ,,,,a bank ,, and they dont accept money lol:laughing::laughing:

You've got to be kidding... Banks charging to accept Legal Tender?

I was surprised at some of the benefits offered through the Minor's Savings Account in addition to 7% interest.

Each time a minor makes a deposit they are also entered into a monthly drawing for a savings bond...

Various Promotions throughout the year...

The provision for a debit card...

When the child turns 18, the account converts to a regular account.

The big bank had the option of waiving fees with a sufficient balance or no fee account with no interest.

 

[LazySusanFarms]

Just guess I am a little confused by the views on credit cards, debit cards and savings accounts. In the past, excessive fees on poor credit borrowers helped subsidize the rates and benefits for the rest of us. The fees were so excessive that we could get 0% balance transfers and low interest credit cards. Remember, a credit card is nothing else than an uncollaterlized signature loan. To have a 25k spending limit at a low interest rate was really a great benefit which was paid all by someone else.

Fast forward to today. Banks are villians because we can't have these types of benefits any longer? My wife helps manage the credit card area for a large bank and their profitability has been seriously diminished by Dodd-Frank and the Consumer Protection Agency. Maybe that's good or bad but one thing is certain, no more good times for the good credit users because we can't overcharge the poor credit borrowers anymore.

Last year, some banks began charging people to deposit money because the FDIC premiums were increased dramatically and the banks couldn't loan the money out to make the spread. Why should the bank take more money when it is a net loss and hurts the current account holders? Interest on savings accounts isn't a right. On top of all this, Ally Bank has the nerve to call itself a different bank. I guess if you call going bankrupt and renaming yourself is different go right ahead. Ally is just the old defunct GMAC that we taxpayers bailed out and will never see our money again.

Banking is very complicated and local smaller banks do serve a good purpose in the community. Geez, I can still remember my Dad getting a Remington 870 as a gift for opening a new account. That was in the 60's. It is very difficult to compete these days in the banking industry and offer any kind of real benefits. UNtil the country as a whole is much more deleveraged, we probably won't see higher interest rates.

 

[chopped]

Yes, not the bank that gives the kids account its another one. The last bank in the area that had a change counting machine. (coins). They no have the machine in the bank for the customers. There will be a fee for non customers, and also a smaller fee for the bank customers . Its all on cource to eliminate the coins I think first. As we go to a cashless society.

 

[ultrarunner]

Just guess I am a little confused by the views on credit cards, debit cards and savings accounts. In the past, excessive fees on poor credit borrowers helped subsidize the rates and benefits for the rest of us. The fees were so excessive that we could get 0% balance transfers and low interest credit cards. Remember, a credit card is nothing else than an uncollaterlized signature loan. To have a 25k spending limit at a low interest rate was really a great benefit which was paid all by someone else.

Fast forward to today. Banks are villians because we can't have these types of benefits any longer? My wife helps manage the credit card area for a large bank and their profitability has been seriously diminished by Dodd-Frank and the Consumer Protection Agency. Maybe that's good or bad but one thing is certain, no more good times for the good credit users because we can't overcharge the poor credit borrowers anymore.

Last year, some banks began charging people to deposit money because the FDIC premiums were increased dramatically and the banks couldn't loan the money out to make the spread. Why should the bank take more money when it is a net loss and hurts the current account holders? Interest on savings accounts isn't a right. On top of all this, Ally Bank has the nerve to call itself a different bank. I guess if you call going bankrupt and renaming yourself is different go right ahead. Ally is just the old defunct GMAC that we taxpayers bailed out and will never see our money again.

Banking is very complicated and local smaller banks do serve a good purpose in the community. Geez, I can still remember my Dad getting a Remington 870 as a gift for opening a new account. That was in the 60's. It is very difficult to compete these days in the banking industry and offer any kind of real benefits. UNtil the country as a whole is much more deleveraged, we probably won't see higher interest rates.

I hear what you are saying.

For me... there are two points I would say in response.

1. Wells Fargo is posting record profits and says there is more to come.

I closed my Wells account in protest not of them doing well... instead it was because as a depositor, I now must give up my right to seek judicial redress if I feel the need...

Wells now requires depositors to waive their rights in lieu of Binding Arbitration... I am a State Certified Arbitrator and believe it should be an Alternative... not a mandatory replacement to the judicial system...

Also, Wells would offer to double the deposit rate if you came in and complained... kind of two tier system.

2. Credit Unions seem to be able to offer consumers all the Services of the Bank with better terms and conditions...

 

[schoolsout]

Fed now says ZIRP (Basically, 0% interest) until 2014...

They don't want a strong dollar.

This facade of an economy is toast. Once you go ZIRP, you can never go higher without implosion...Just look at Japan...if they went to 3% now, what do you think would happen?

Game over...time for a system reset....and I hope you all land on the right side when, not if, it happens.

 

[ultrarunner]

Fed now says ZIRP (Basically, 0% interest) until 2014...

They don't want a strong dollar.

This facade of an economy is toast. Once you go ZIRP, you can never go higher without implosion...Just look at Japan...if they went to 3% now, what do you think would happen?

Game over...time for a system reset....and I hope you all land on the right side when, not if, it happens.

I kind of figured the fix was in when rates took another tumble...

Also, there is pressure to keep the dollar from getting strong and loosing the trade advantage all the while the Euro is dropping...

I'm sure someone will write a book looking back and saying all the signs were clear as day...

 

[schoolsout]

Also, there is pressure to keep the dollar from getting strong and loosing the trade advantage all the while the Euro is dropping...

That's a valid reason, but I think it is being used to cloak the real reason they want a lower dollar.

1) They need to save the current "broken" financial system that has built up a lot of debt. Only way to do that is to be able to pay that debt down (with cheaper dollars)

2) The banks are so levered up through synthetic paper instruments that should any country or larger company/corporation fail, the banks fail, too.

3) They'll make good on the promises (entitlements/pensions/benefits) the gov't has made over the years. You'll get the amount they told you they'd give you...unfortunately, by that time, a loaf of bread will be $10 and a gallon of gas $10. Hey, they fulfilled their promises...and they'll feed us some BS on why prices are so high (and it won't be because they devalued the currency).