Earlier quoted context omitted.
He just uses a crap bank.
Crap banks abound.
And some are very big, too.
Banks Are Now Accused of Cheating Customers Billions
51–60 of 78 posts
Re: Banks Are Now Accused of Cheating Customers Billions
#52[flagged]
Re: Banks Are Now Accused of Cheating Customers Billions
#53Earlier quoted context omitted.
Yes. Before brokerages were part of banks, cash in a brokerage account was usually stored in a money-market fund, with whatever interest money market funds were paying. Once merging with a bank, cash was swept into an in-house bank account. This didn't matter much when money market funds were paying near zero interest. But the zero interest rate era is over. Except for demand deposits in banks, which pay well below m…
My parents instilled in me a mild distrust of banks. It's for this reason that I get my statements mailed to me each month, and each month I reconcile what's on the paper with what's in my spreadsheet. Guess what? Every year I find a mistake in at least one bank statement. And it's always in the bank's favor. Sometimes it's a few cents, but once it was a few hundred dollars across multiple errors. When I've told peop…
> Every year I find a mistake in at least one bank statement. And it's always in the bank's favor. Sometimes it's a few cents, but once it was a few hundred dollars across multiple errors.
How much time have you spent on this overall compared to the amount of money you saved by noticing these errors? I certainly don't think it's fair for banks to get away with this, but I'm not convinced that tracking things at that level of detail would be worth it for most people
Re: Banks Are Now Accused of Cheating Customers Billions
#54This happened to me with Umpqua Bank. They offered a money market account that sounded great. I basically forgot about it, and checked my statement one day to find it earning 0.05%. Not 5%, 1/100th of that.
My fault for not being diligent. Missed out on a lot of interest earnings as a result.
Edit: I have since moved all of my banking business to a local credit union and closed mine and my kids' Umpqua accounts, and opened a Schwab account for better interest earnings from their money market fund offering.
Re: Banks Are Now Accused of Cheating Customers Billions
#55Earlier quoted context omitted.
My parents instilled in me a mild distrust of banks. It's for this reason that I get my statements mailed to me each month, and each month I reconcile what's on the paper with what's in my spreadsheet. Guess what? Every year I find a mistake in at least one bank statement. And it's always in the bank's favor. Sometimes it's a few cents, but once it was a few hundred dollars across multiple errors. When I've told peop…
> Every year I find a mistake in at least one bank statement. And it's always in the bank's favor. Sometimes it's a few cents, but once it was a few hundred dollars across multiple errors. How much time have you spent on this overall compared to the amount of money you saved by noticing these errors? I certainly don't think it's fair for banks to get away with this, but I'm not convinced that tracking things at that…
How do we know that banks are making these errors if no one checks? It might be a few bucks on your account here and there but if that happens over millions of customers... That's a nice little scheme for banks to get away with.
Re: Banks Are Now Accused of Cheating Customers Billions
#56A tidbit from the 2007-2008 crash: I was banking with a Credit Union in Silicon Valley at the time of the crash.
I would go into the bank once or twice a month and the teller-line had a cork-board on the wall to the left, and the CU would post a Line-Printer style balance sheet of various financials they reported on for reasons because a co-op credit uninos transperency bylaws (Im assuming thats the thing) required it...
I used to lok at it each time I was in the brankch because I despise banks and their inner workings (my mother was in wachovia/wells fargo commercial loan executive when the whole fraud accounts, and other bad things, BCCI Iran Contra Khshogghi, Keating Five Savings and lone, PPE loan scandal and tarp, and goldman sach - you get the idea)
Anyway, the one line item I always looked at "OVERDRAFT REVENUE" Where it was in the ~$20,000 to $40,000 prior to the crash, at the peak of the crash they posted $500,000+ every TWO weeks in overdraft fees from the members of the credit union.
Re: Banks Are Now Accused of Cheating Customers Billions
#57Who has the best interest rates for idle cash? I have been using Marcus, but it is not a huge burden to shop around.
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Re: Banks Are Now Accused of Cheating Customers Billions
#58Earlier quoted context omitted.
> But if you utter the correct series of incantations, at least some banks will open a high-yield savings account and pay you 5% or more. You gotta find the right bank, though, and utter the right incantations. Sometimes it’s tricky Searching the internet for “list of highest interest bank accounts” with the device in your pocket is apparently a tricky incantation. Shopping an entire country’s investment options has…
Just because it is possible to navigate through the dark patterns does not mean we should be comfortable with the situation. I do not have the time nor expertise in every facet of my life to know if I am getting a raw deal.
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Re: Banks Are Now Accused of Cheating Customers Billions
#59Earlier quoted context omitted.
Well I am glad I don’t see people writing about “high yield savings accounts” as often I see that copy pasted from old tutorials on basic investing. Maybe I am wrong but I don’t think there were any “high yield” savings accounts for at least a decade or even more. All savings accounts I see are mostly below inflation or around the same. Where high yield for me would be at least 1% or 2% above inflation.
Inflation is now below 3%. HYSAs are above 4% right now, so are beating inflation by a good margin. Of course, changing interest and inflation rates can change that.
> Inflation is now below 3%
Officially.
Re: Banks Are Now Accused of Cheating Customers Billions
#60[deleted]