Monday, December 29, 2008

Why banks charge inactivity fees?

9 Month Inactivity Fee with money in [Bank Name]: Accounts with no activity cost banks money to maintain. After 9 consecutive months of no activity, a $19.00 monthly fee will be assessed until the account reaches a zero balance. At this time the account will be closed. If the user wants to re-open an account, he or she can do so. This fee will never overdraw the account.

Forgive me for not being a banker, but I don't understand why an account with no activity would cost a bank any more money to maintain than active accounts. Also, don't banks have some type of dividends, or interest earnings? That should qualify as activity, plus the bank is able to play with the money you leave in there, investing, lending, otherwise using that money to make money.

As for the cost associated with maintaining an inactive account. The bank already has the computer infrastructure in place, your dormant account is one or more records of possibly millions in a database table. By not logging in, or producing activity, you're likely saving them money. Each time you log in, its processed and stored, plus bandwidth and server usage for looking at your account, small peanuts sure, but a record that is never accessed, charging an inactivity fee sounds like a revenue source as opposed to quid pro quo.

Which reminds me, wheres the ethics in installing red-light-cameras in areas where it will maximize city revenue, as opposed to increase safety?

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1 comment:

  1. It is easier for the Bank to get over on somebody that is not active in checking their account. And by the time they do, its too late to refund all the money they stole from you. See Bank of America $8.95 monthly maintenance fee...


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