What do bank really do for consumers?
They don’t give you any interest on your money, and charge you a monthly fee for your checking account. That $7 monthly charge can be easily used to buy money orders that will never bounce. The banks charge you to withdrawal your money via other ATM’s, they charge you for insurance policies for overdrafts, and etc., But what is the biggest problem with banks?
It is the overdraft fees that they charge you if you bounce a check. Banks know that people living paycheck to paycheck have a higher chance of bouncing a check. That is why the overdraft business is over a 40 billion dollar a year business. Yes, you read that correctly. These types of fees are the few sources of revenues that are making money for the banks. They are not lending, so there is no money to make from those fees.
ATM fees are outrageous, and if you need emergency cash, and your ATM is not near by you end up spending over $2 to take out your own money. cheap jerseys China Does this make any sense? Consumers who don’t have a lot of money should never use a bank? When the 2008 debacle occurred, the US Government had to bail out the banks. So do you think the banks are really that safe?
Ever tried to cash a check at a bank? How long do they keep your money before they release the funds? Do you know what they are doing with your money during that time? The banks uses the funds during this “holding period” and Sense makes money in the overnight repo markets. They are lending your money out and making money, and then paying nothing to use your money.
So what are the banks good for? Nothing. They don’t lend out money when people and businesses need it. Even though the federal government have urged the banks to lend, they are too scared. They weren’t scared when they were giving out money to people who couldn’t afford 2014 homes, and made the fatal error of thinking that housing prices would never drop. Now, when people and businesses really need the money, they are not lending.
The US government should nationalize the banks, and force them to lend and create jobs in our economy. The banks do nothing to help consumers, and this has to change. Banks help lend to people who they knew couldn’t afford high-priced homes. And now, when people really need the funds to start a business, or prevent a foreclosure, the banks are no where to be TO found. Their reckless behavior has hurt the nation, and we as taxpayers have bailed them out. In return, they have not been a partner of the American people in lending money when we need it.
Start using a check cashing service. You get your money right away, and that is only time we ever charge a fee. Use money orders as your checks that will never bounce. And, if you need to borrow money you can get a payday loan. Guess what? The payday loan is a lot cheaper than bouncing a check. Why do you think most of our customers borrow money from us put in their bank account? Most payday customers continue to use their checking account and borrow from us to prevent the expensive overdraft fees. What does that say about the banks?