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Originally Posted by deltav
Well, most personal check & savings accounts are more or less just loss-leaders for banks - they don't actually make any money on them.
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LOL and who's the source for that, the banks themselves no doubt. My bank makes money on my checking account, nickel and dime fees, shitty currency conversion prices they rip me off on going both ways, and don't forget, customers' bank deposits are loaned out.
Hmmm - I just read an article that does support your claim, when there's not big demand for loans.
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Years ago, amid the housing boom, banks eagerly sought funds that could then be loaned at high interest rates to real estate investors and would-be homeowners seeking mortgages. Now, however, lending standards are more restrictive, and banks are swimming in more money than they want or know what to do with. Deposit insurance premiums increase for banks as they hold onto larger and larger amounts of cash, and so, increasingly, customer deposits are coming to be seen as a cost for banks, not a means to make money.
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It also goes on to say that banks make a fortune off the poor and stupids' checking and saving accounts through punitive fees for overdrafts and dipping below the minimum balance requirement.
It's the same as VISA and MASTERCARD, they don't make money off people who pay off their balance in full each month.