2006-10-04 22:29:49 · 16 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Banks do not just make money via a diversified portfolio. They make money from charges. It is in their best interests to ensure that you are in debt, especially to them. They can then make money on the interest and charges.
During the collaps in property prices, one of my lecturers, who was working on his doctorate, got to interview one of the heads of a UK bank and he addressed the question of all of these people losing their homes.
The Interviewee just shrugged. He stated that, whether the property was reposessed, or continued to be paid for was irrelevant. In either event the bank would make money.
2006-10-04 22:45:47 · answer #1 · answered by Alice S 6 · 0⤊ 0⤋
Banking is free if you run you account properly. The charges that banks make are both admin fees but also to encourage you to ensure there are funds to cover any payments. Depending on what type of payment is going to come out of your account the bank will not know about it until it actually debits so they would not have known there were insufficient funds.
Call the bank and ask for the charge back depending on your situation they might give it back to you but you will have to ask.
2006-10-05 05:47:45 · answer #2 · answered by lexie1 2 · 0⤊ 0⤋
Because it is 100% your job to make sure there is enough money in your bank account. Not them.
If you write a check, they have to work to find out if there is money or not in there, notice there isn't, send the check back to the retailer/whoever you wrote it to, send a note to you telling you there were no funds, and punish you for trying to write a check without having the money in there.
As I said, it is your job to be responsible and know at all times how much money you have so that this doesn't happen.
Consider making a savings account and having it used for overdraft protection. Most banks do allow for that.
2006-10-05 05:32:32 · answer #3 · answered by iswd1 5 · 0⤊ 0⤋
Simpley put because they can and they make a lot of money doing it! I hate it when they try to put the check through twice and nail you two times for $25 or more! Some banks make more on fees than on anything else.
2006-10-05 06:08:39 · answer #4 · answered by N3WJL 5 · 1⤊ 0⤋
Then they charge you the interest on the amount you go over drawn by, which would have been much less if they had not taken a big chunk out! Talk about take whats not there!
Its because they are greedy fat cats!!!
2006-10-05 05:34:00 · answer #5 · answered by michelle a 4 · 0⤊ 0⤋
I'm not clear on what you mean? More details would be useful.. To my knowledge, unless you have a premium account, you dont get charged a fee if your account has a zero balance..
As I say, more details will get better responses!
2006-10-05 05:32:52 · answer #6 · answered by frontera2 3 · 0⤊ 0⤋
Just be glad they don't call the sheriff.
Writing hot checks is against the law.
You should ask your bank what their policy is regarding check processing. It is your responsibility to find the bank that works best for you.
2006-10-05 07:49:15 · answer #7 · answered by derek 4 · 0⤊ 0⤋
Nothing like kicking you when you're already down. They are in the business of making money, so any chance they get to charge you, they do.
2006-10-05 07:00:45 · answer #8 · answered by Jenny 1 · 0⤊ 0⤋
Because they are greedy! Even when you do have funds, have you noticed the measly interest rate, compared to the interest they charge when you go over-drawn?
2006-10-05 05:33:00 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Because they are a business and need to make money where they can.
Unfair but true. They decide that they just look after our money, they aren't our accountants.
2006-10-05 05:33:01 · answer #10 · answered by babyeddieuk 3 · 0⤊ 0⤋