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.
B of A has offered a checkless checking account for an established fee of $4.95. However, this very basic account will not allow overdrafts. It's a modest charge targeted for low-income clients who are simply in dire need of a basic checking account. While this is not nearly pricey enough to alarm anyone, particularly customers or legislators, this small change in their banking strategy could hide a a greater threat about the banking sector and the economic climate itself.
First, of all, here is why it's really odd:
* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.
* 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.
Why is a multi-billion dollar bank asking low-end customers for petty cash? Why is it pursuing a policy that that most other banks consider too absurd to consider? Is it out of petty minded thinking, unmitigated greed or desperate necessity? Frankly, our only hope as Americans is to transfer our loyalty from printed paper money back to the only true money, which is God's Money-Gold and Silver.
B of A has offered a checkless checking account for an established fee of $4.95. However, this very basic account will not allow overdrafts. It's a modest charge targeted for low-income clients who are simply in dire need of a basic checking account. While this is not nearly pricey enough to alarm anyone, particularly customers or legislators, this small change in their banking strategy could hide a a greater threat about the banking sector and the economic climate itself.
First, of all, here is why it's really odd:
* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.
* 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.
Why is a multi-billion dollar bank asking low-end customers for petty cash? Why is it pursuing a policy that that most other banks consider too absurd to consider? Is it out of petty minded thinking, unmitigated greed or desperate necessity? Frankly, our only hope as Americans is to transfer our loyalty from printed paper money back to the only true money, which is God's Money-Gold and Silver.
About the Author:
Learn more about precious metal investing. Stop by Anne Trimble's site where you can find out all about gold and silver and what it can do for you.
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