To Your Health June, 2008 (Vol. 02, Issue 06)

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Putting Your Finances in Order

Is Your Bank Ripping You Off?

By Stanley Greenfield

In this second installment in my series of financial articles, let's pretend I'm Jesse James or John Dillinger. No, I'm not really going to rob a bank, but I will show you how banks are stealing from you.

I'll also show you how you can play the same game they do and come out a winner. Believe it or not, that wonderful philosopher Miss Piggy made a profound statement about banks: "You have to wonder about an institution that puts a chain on a ballpoint pen!" That might not register with some of you, since most of us rarely ever enter a bank lobby these days, but it's an important point to ponder.

The Business of Banking

Banks are interesting institutions - if you don't mind being in an institution! I'm reminded of the legendary character Robin Hood, who stole from the rich to give to the poor. Banks don't have that problem. They steal from all of us and just keep it all for themselves!

Banking is a great business to be in. They charge you fees to put your money into their bank and then put a hold on it before it's credited to your account. They pay you next to nothing in interest on your money while they lend it out and make a lot of interest. And if you ever want to take some of your money out, they make you use a piece of paper that they charge you to use. What a deal - for them! Have you ever thought about it like that? Well it's time you did. Your "friendly banker" really isn't your friend.

Check Your Check Fees

Let's start with those magical pieces of paper they sell us so we can get some of our money out of their bank - checks. Have you ever sat down and figured out what you are paying for all those checks you write every month? Did you know you can buy checks elsewhere and cut your cost in half? The next time you open your Sunday newspaper and all of those colorful inserts fall out, take a look at the ones offering checks. You can save a bundle, and they work just as well as the ones your banker wants to sell you. By the way, the deposit slips work, too. And remember, you can always do your banking online and write minimal checks each month.

In my last article, I touched on how banks use the "float" to make money on your money. You make a deposit and they put a hold on it for up to one week to make sure it's "good." In the meantime, they use this money without paying you anything for it. It might be time for you to sit down with your so-called friendly banker and tell them this is not acceptable if they want to keep you as a customer. You might want to remind them how much money you are running through their grubby little fingers each and every year. That might make them "modify" their hold on your deposits. Most of you have more that enough in your accounts to cover any deposits that might not be good. By the way, they will not offer you this without a strong demand from you.