It was only four short years ago when the United States government used taxpayer's money to pay out $45 million to rescue Bank of America from going out of business. Since that time, the bank has been embroiled in numerous investigations for fraudulent banking practices ranging from foreign-exchange to mortgages and paid millions in litigation. Now, the second-largest bank in this country in terms of assets needs to weasel $4.95 out of people who are barely making it in this economy and desperate to get a checking account. Is this a mere sign of penny-pinching banking practices or a symptom of something bigger going on like a small pimple that turns out to be cancerous. There is something not quite 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.
Here are three reasons why I classify this as an anomaly:
1. In today's financial market, no frill accounts are typically complimentary. As a matter of fact, free checking is now the norm.
* Since 2011, Bank of America has been trying to reintroduce the idea of a basic banking fee. The experiment began by charging bank customers in three states-Arizona, Georgia, and Massachusetts-a flat fee ranging between $6 to $9 for a simple checking account. The idea did not work very well and the pilot program was scratched. In 2012, they tried it again. This time 10 million customers complained vociferously about it.
* There are no waivers. While mega banks do have paid checking accounts, they also have certain conditions to waive the fee--like direct deposits, keeping a reasonable balance, etc.
So why is a multi-billion bank asking low-end customers for petty cash? Why is it seeking a flimsy plan that that most financial institutions think too silly to take into consideration? Is it out of petty reasoning, straight-out greed or hopeless need? Frankly, our only hope as Americans is to move our loyalty from fickle banks that grow fat on fiat money and go 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.
Here are three reasons why I classify this as an anomaly:
1. In today's financial market, no frill accounts are typically complimentary. As a matter of fact, free checking is now the norm.
* Since 2011, Bank of America has been trying to reintroduce the idea of a basic banking fee. The experiment began by charging bank customers in three states-Arizona, Georgia, and Massachusetts-a flat fee ranging between $6 to $9 for a simple checking account. The idea did not work very well and the pilot program was scratched. In 2012, they tried it again. This time 10 million customers complained vociferously about it.
* There are no waivers. While mega banks do have paid checking accounts, they also have certain conditions to waive the fee--like direct deposits, keeping a reasonable balance, etc.
So why is a multi-billion bank asking low-end customers for petty cash? Why is it seeking a flimsy plan that that most financial institutions think too silly to take into consideration? Is it out of petty reasoning, straight-out greed or hopeless need? Frankly, our only hope as Americans is to move our loyalty from fickle banks that grow fat on fiat money and go back to the only true money, which is God's Money-- Gold and Silver.
About the Author:
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