Bank Robbery

Checking around a one year CD(certificate of deposit) pays a whopping 0.55 percent on a minimum one thousand dollar deposit. So a person could realize enough money for the year to buy a cup of coffee at Starbucks. In the meantime the banks will assess a ten dollar a month service charge on your checking account. YOU pay out a hundred twenty bucks for the year. So YOU pay THEM for using YOUR money.

Now consider this: back in 1954 when I was in the fourth grade I had a school banking account with Bank of America paying 4.25 percent with no service charge. Not bad for a dirty sweaty den-year old kid. Then in 1965 my wife and I opened a savings account which paid about five percent annually. Later at another savings bank it paid a little over six percent. All these accounts insured by the federal government with no bank service charges. Plus saving transactions not done during a time of inflation.

But during inflationary times(1978 to about 1985) I had a one thousand dollar CD that paid 9.1 percent. Enough interest paid out for a nice dinner out for my wife and me.

So what happened? Why are the banks not paying off to the account holder? Simply because the banks loves its Stockholders. So the account holder no longer gets the lion’s share of interest accrued. They, the banks, rather pay off the stockholder and let them take the risk with non-insured accounts. So when did all the rules change? It started when banks were allowed by reduced regulations to start up or buy brokerage firms or when brokerages opened banking services . Naturally insisting and pushing account holders towards investing rather than saving. Driving banking customers from savings accounts over to high risk brokerage investment accounts. And if the investment goes south, the investor is the loser. But the CD savings holder gets his half percent annual interest. All accomplishing what? The bank/brokerage wins no matter what. You get a very low yield or nothing at all. Possibly being assessed a service charge for the banks trouble. And again all of this a result of reduced banking regulations. And there is nothing you can do about it. Well, unless you hammer congress maybe.

Published by Chuck the Curmudgeonmeister

If I told you the truth about myself you would think what a wad of chewed gum stuck under a church pew I am. Dull. Ordinary. However, I wasn't born yesterday.

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