Bank Fees
Posted By: Dr. Frugal in Saving on 09/29/2007 at 07:09:50
The fees banks charge for their services can contribute a significant amount to their bottom line. Subsequent sections in this part on banking discuss fees for a variety of services that banks provide. Fees are particularly attractive to banks because they aren't rate sensitive--most do not fluctuate with the prevailing interest rates.
Banks collect fees on a variety of products and services. The fees often act as additional return on a product that does not work well in traditional pricing. Checking accounts are a good example. Banks charge a fee for a plethora of basic account functions: too low of a balance, too much activity, overdrawn accounts, wrong type of activity, copies of checks, overuse of a live teller...I could go on. Fees can be particularly annoying, especially when you thought you had a "free" checking account.
Comments
No comments yet. Future commenting has been disabled.
Sections
Budget (33)Credit (31)
Currency (22)
Economics (86)
Frugality (74)
Loans (42)
Politics (18)
Saving (37)
Taxes (42)
Related:
How Banks Make MoneyHow to Love Inflation
Inflation and Interest Rates
Is Inflation Dangerous?
Calculating the End Balance
