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Banks - If you work for a bank look away

Grumpy Old Lemons Like You
AsleepInYorkshire
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Banks - If you work for a bank look away

#472587

Postby AsleepInYorkshire » January 12th, 2022, 10:48 pm

I was just glancing through my bank account which I don't really do that often.

The bank had a little window telling me I was highly likely to be approved for an overdraft. Whoop-de-doody.

I looked at the figure and thought to myself ... how much ... more than I earn in a month. Now given my account never goes below 6 months earnings I pondered two things

1. Why would I need an overdraft?
2. Why do the bank want to charge me interest if I borrow money from them but when I've got a slice of cash in there they don't want to pay me?

Bankers :lol:

AiY

Bminusrob
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Re: Banks - If you work for a bank look away

#472673

Postby Bminusrob » January 13th, 2022, 9:53 am

I trust you are aware of the collective noun "wunch".

However, in answer to your second question, I think my old boss summed up the answer quite nicely: "The boys have got to eat".

Anyway, it is a bit of a chnge from the old days, when I remember threatening my bank with taking my overdraft somewhere else.

swill453
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Re: Banks - If you work for a bank look away

#472811

Postby swill453 » January 13th, 2022, 4:28 pm

AsleepInYorkshire wrote:2. Why do the bank want to charge me interest if I borrow money from them but when I've got a slice of cash in there they don't want to pay me?

Because they give you free banking.

Scott.

pje16
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Re: Banks - If you work for a bank look away

#472812

Postby pje16 » January 13th, 2022, 4:31 pm

Give a man a gun and he will rob a bank.
Give a man a bank and he will rob everyone
:lol:

Mike4
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Re: Banks - If you work for a bank look away

#472815

Postby Mike4 » January 13th, 2022, 4:45 pm

swill453 wrote:
AsleepInYorkshire wrote:2. Why do the bank want to charge me interest if I borrow money from them but when I've got a slice of cash in there they don't want to pay me?

Because they give you free banking.

Scott.


Yes and as everybody knows, a bank costs nothing to run.

It always appears to me that for banks to make money from you, they need your balance with them to be as far away from zero as possible, in either direction.

stevensfo
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Re: Banks - If you work for a bank look away

#472831

Postby stevensfo » January 13th, 2022, 5:36 pm

swill453 wrote:
AsleepInYorkshire wrote:2. Why do the bank want to charge me interest if I borrow money from them but when I've got a slice of cash in there they don't want to pay me?

Because they give you free banking.

Scott.


I remember when many people were paid cash every week, had a P.O. account and perhaps an account with a Building Society. Then the banks got us paying into an account, treated us like Gods, we had Personal bankers, all sorts of perks to make us join.

Now the branches are being closed. Banks are no longer desperate for customers. They are shops!! Their AML rules are just a front. Do an internet search for corruption - AML -'your bank' and you'll see what I mean.

We should all start charging our banks for using our money.

Steve

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Re: Banks - If you work for a bank look away

#473151

Postby 88V8 » January 14th, 2022, 6:48 pm

I've been with Natwest since it was the National Provincial.
The oak-panelled branch in Lime Street.

Now we have a Rewards current account that pays us money... and a branch within 5 miles.... no complaints from me.

Cash on deposit.. b'all interest... well can't have everything I suppose...

V8

scrumpyjack
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Re: Banks - If you work for a bank look away

#473156

Postby scrumpyjack » January 14th, 2022, 7:04 pm

88V8 wrote:I've been with Natwest since it was the National Provincial.
The oak-panelled branch in Lime Street.

Now we have a Rewards current account that pays us money... and a branch within 5 miles.... no complaints from me.

Cash on deposit.. b'all interest... well can't have everything I suppose...

V8


Yes me too. My NatWest a/c was opened in about 1965.

They charge me £2 a month for the account but then pay me £10 a month for having the account, plus I have a personal banking manager, though he seems to change every 6 months or so. I can't see how the economics of that work. I put the money elsewhere to earn interest of course.

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Re: Banks - If you work for a bank look away

#473164

Postby dealtn » January 14th, 2022, 7:23 pm

scrumpyjack wrote: I can't see how the economics of that work.


It doesn't.

But if banks start to charge the appropriate amount for the services they provide, most, including the media turn on them.

Try living in a number of other countries and see what service levels and a desire for "free banking" looks like.

(With apologies for the Board that is posted on!)

Midsmartin
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Re: Banks - If you work for a bank look away

#473165

Postby Midsmartin » January 14th, 2022, 7:25 pm

Try living in a number of other countries and see what service levels and a desire for "free banking" looks like


I've no idea.. What does happen in other countries?

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Re: Banks - If you work for a bank look away

#474014

Postby didds » January 18th, 2022, 9:59 am

WRT other countries, between 1987 and 1993 I held bank accounts in USA, NZ, Aus, Germany. None of them charged for banking.

Of course I accept things may have changed in the past 28 years :-)

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Re: Banks - If you work for a bank look away

#475251

Postby roger4 » January 22nd, 2022, 3:17 am

For information, I do have a certain amount of "free" banking here in Sri Lanka. Transfers to accounts within the bank (no matter where they are located) are not charged, but transfers to State Banks incur a small charge. There are no "unauthorised overdrafts". Transfers out of the country are subject to strict regulation for ordinary people (but not if you have a politician in your pocket).

Roger

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Re: Banks - If you work for a bank look away

#475577

Postby stevensfo » January 23rd, 2022, 4:11 pm

Midsmartin wrote:
Try living in a number of other countries and see what service levels and a desire for "free banking" looks like


I've no idea.. What does happen in other countries?


Foe thirty years, I've had a current account in France that is free. They had ISAs long before the UK but I withdrew everything about ten years ago. Probably 200 euros there now.

Italy used to charge about 10 euros a month. After the Financial Crisis, they introduced a yearly tax of 33 euros, even on savings accounts! This lasted about three years before they realised how silly it was. Bank charges are now a few euros per month.

Steve

PS A 'Believe it or not' fact: the ex-president Berlusconi wanted to be seen to be hard on money-laundering, and...those who simply want to keep their finances private. He forced the Swiss banks to implement a charge on non-resident accounts. Approx 48 euros per year! His mates and those who were hiding millions just laughed.

PPS In Italy, when you do a tax return, you are expected to declare every single bank account you have and all property owned. (Lots of italians have 2nd homes!) The fines for not doing this are extortionate.

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Re: Banks - If you work for a bank look away

#485263

Postby SDN123 » March 9th, 2022, 4:07 am

Midsmartin wrote:
Try living in a number of other countries and see what service levels and a desire for "free banking" looks like


I've no idea.. What does happen in other countries?


I lived in Australia for 4 years. Free banking but charged for using anyone else’s ATM machine. Charged for most credit cards (and no “free” insurance like in the UK). You could get around most things but you had to be savvy. Plus they tried to upsell everything, always.

I lived in Canada for over 5 years. No free banking for most, charged for everything unless you keep a very large positive balance. Even then you have to pay to buy your cheque book from a third party. Almost no such thing as a free credit card, you definitely have to pay if you want UK like insurance on purchases. Upsell everything with every conversation. Hide fees. Hide “small print”. Misleading adverts. Takes days to compete electronic transfers - sometimes even transfers between your own accounts at the same bank! You can get around most things if your well paid and savvy, but you have to be VERY careful.

UK banking has challenges but is streets ahead of equivalents in Australia and Canada, in my experience.

Funnily enough investing totally the other way around. In Canada my equivalent of a SIPP has no annual fee and doesn’t charge any trading fees. Funds (I mainly use ETFs here) are very cheap, most mainstream versions have well under 0.1% annual fees.

Strange old world!

Dod101
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Re: Banks - If you work for a bank look away

#485268

Postby Dod101 » March 9th, 2022, 6:55 am

SDN123 wrote:
Midsmartin wrote:
Try living in a number of other countries and see what service levels and a desire for "free banking" looks like


I've no idea.. What does happen in other countries?


I lived in Australia for 4 years. Free banking but charged for using anyone else’s ATM machine. Charged for most credit cards (and no “free” insurance like in the UK). You could get around most things but you had to be savvy. Plus they tried to upsell everything, always.

I lived in Canada for over 5 years. No free banking for most, charged for everything unless you keep a very large positive balance. Even then you have to pay to buy your cheque book from a third party. Almost no such thing as a free credit card, you definitely have to pay if you want UK like insurance on purchases. Upsell everything with every conversation. Hide fees. Hide “small print”. Misleading adverts. Takes days to compete electronic transfers - sometimes even transfers between your own accounts at the same bank! You can get around most things if your well paid and savvy, but you have to be VERY careful.

UK banking has challenges but is streets ahead of equivalents in Australia and Canada, in my experience.

Funnily enough investing totally the other way around. In Canada my equivalent of a SIPP has no annual fee and doesn’t charge any trading fees. Funds (I mainly use ETFs here) are very cheap, most mainstream versions have well under 0.1% annual fees.

Strange old world!


Not surprisingly, at least Canadian banks make good investments. If our friend Pastcaring is to be believed, so too are Australian banks and i think neither had any problems in the financial crisis of 2008/9,

Dod

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Re: Banks - If you work for a bank look away

#488164

Postby 1nvest » March 21st, 2022, 9:01 pm

Mike4 wrote:It always appears to me that for banks to make money from you, they need your balance with them to be as far away from zero as possible, in either direction.

We live in a depository world nowadays, not custodial. With custodial your money was kept safe in the banks vaults for a fee. Under depository any deposits you make becomes the banks money, free to do what they like within regulations that are pretty broad but that stop slightly short of betting it all on the 3:30 at Kempton and win they keep the money and pay themselves big bonuses or lose the taxpayers bails them out.

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Re: Banks - If you work for a bank look away

#488176

Postby Mike4 » March 21st, 2022, 10:00 pm

1nvest wrote:
Mike4 wrote:It always appears to me that for banks to make money from you, they need your balance with them to be as far away from zero as possible, in either direction.

We live in a depository world nowadays, not custodial. With custodial your money was kept safe in the banks vaults for a fee. Under depository any deposits you make becomes the banks money, free to do what they like within regulations that are pretty broad but that stop slightly short of betting it all on the 3:30 at Kempton and win they keep the money and pay themselves big bonuses or lose the taxpayers bails them out.


That's odd. I was gonna post that Kempton Park had been closed and sold off for housing development a couple of years ago, but a brief goggle shows there is still racing going on there!


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