How Do They Sleep at Night? Part 4 – Banks and their Usurious Fees

My Dad went to Las Vegas last week and did a wee bit of winning. When he got back to his L.A. home he deposited the money, about $9000 (woo hoo!), into his business account there.

He was very surprised to discover that his bank had charged him a service fee. Apparently, he deposited too much money with them.

Yeah. See, they charge .30 per $100 for any deposit greater than $5000. Apparently “their exposure is greater.” Whatever that means.

A bank. That’s using his money to make money of their own. Charging him for the privilege of allowing them to do so.

Those are some pretty huge, green kahunas. And that got me thinking about other bank fees that really get my panties in a twist…

My husband walked into a branch to cash a check a friend had written to him. The teller told him there was a $5 charge to cash the check because he didn’t have an account there. “But this check is written on your bank! Why should you get my money to cash your own check?” After listening to the woman spew the company line he turned on his heel and left.

Another bank here charges you to talk to a teller. Indeed.

I’ve read that other banks are charging fees to deposit or withdraw from accounts and to transfer money between them. There are fees if you dip below a certain balance, and fees if you write too many checks. There are fees if you write too few checks.

I’ll bet some  have pay toilets.

They charge three times as much to order new checks for you than you’d pay yourself by ordering through a secondary vendor like www.checksunlimited.com.

Don’t  even get me started on credit card fees

I understand that banks are businesses. I don’t have a problem with every fee banks charge. I’m aware of and even support fees for bounced checks. We’re all responsible to know how much money we have in our accounts, and if we blunder we need to pay the price. At the same time, a $25 charge for a $3 overdraft just seems usurious.

I’m also not completely against banks charging fees when you use an ATM that isn’t in your network. You’re paying for the convenience of not having to travel far out of your way to find your own bank. Fine. You save money on gas, so it’s almost a wash.

Apparently, though, we’re supposed to understand that the banks are also victims of the sub-prime mortgage crisis. They must raise their fees to try to make up a portion of the money they don’t have since they lost their shirts making bad loans.

Boo-hoo.  My heart breaks for ya.

Like this post? Read the other posts in this series!

See the Stretch Your Dollar Page for other money-saving ideas.

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