Four years back, the government used citizen's tax money to pay $45 million to rescue the second largest bank in the country from going out of business. Since that time, the financial institution has actually been embroiled in various investigations for illegal financial practices ranging from foreign-exchange to home mortgages, and as a result of these shenanigans has paid millions in lawsuits. Now, Bank of America, a company that earns billions, is strong-arming $4.95 from folks who are scarcely making it in this economic climate and desperate to obtain a bank account. Is this a mere indication of frugal banking methods or a symptom of something larger going on--like a small pimple that becomes cancerous. There is something remarkably odd right here.
Bank of America has introduced a checkless checking account for a small, set fee of $4.95. This no-frills account will not allow overdrafts. It's a modest fee targeted toward low-income customers who just need a basic bank account. In itself, this seems like a small blip on the radar-not enough to alarm anyone, especially customers or lawmakers. Yet, this small change in their banking policy could hide a much more sinister story about the banking industry and the economy itself.
First, of all, here is why it's definitely very strange:
* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.
* This particular financial institution has actually been trying to reestablish the concept of a basic banking cost. The experiment started by asking for bank customers in Arizona, Georgia, and Massachusetts to pay from between $6 to $9 a month for a simple checking account. The policy did not work effectively and the pilot program was a failure. Then in 2012, they tried it again, and this time 10 million customers complained vociferously.
3. There are no ways to waive the fee. While megabanks do have payable checking accounts, they likewise have specific conditions to waive the cost-- like direct deposit, keeping a reasonable amount in the account, and so on.
Why is a multi-billion dollar bank asking low-end customers for petty cash? Why is it pursuing a policy that that most other banks consider too absurd to consider? Is it out of petty minded thinking, unmitigated greed or desperate necessity? Frankly, our only hope as Americans is to transfer our loyalty from printed paper money back to the only true money, which is God's Money-Gold and Silver.
Bank of America has introduced a checkless checking account for a small, set fee of $4.95. This no-frills account will not allow overdrafts. It's a modest fee targeted toward low-income customers who just need a basic bank account. In itself, this seems like a small blip on the radar-not enough to alarm anyone, especially customers or lawmakers. Yet, this small change in their banking policy could hide a much more sinister story about the banking industry and the economy itself.
First, of all, here is why it's definitely very strange:
* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.
* This particular financial institution has actually been trying to reestablish the concept of a basic banking cost. The experiment started by asking for bank customers in Arizona, Georgia, and Massachusetts to pay from between $6 to $9 a month for a simple checking account. The policy did not work effectively and the pilot program was a failure. Then in 2012, they tried it again, and this time 10 million customers complained vociferously.
3. There are no ways to waive the fee. While megabanks do have payable checking accounts, they likewise have specific conditions to waive the cost-- like direct deposit, keeping a reasonable amount in the account, and so on.
Why is a multi-billion dollar bank asking low-end customers for petty cash? Why is it pursuing a policy that that most other banks consider too absurd to consider? Is it out of petty minded thinking, unmitigated greed or desperate necessity? Frankly, our only hope as Americans is to transfer our loyalty from printed paper money back to the only true money, which is God's Money-Gold and Silver.
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Want to find out more about precious metal investing, then visit Anne Trimble's site on how to buy gold and silver.
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