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I'd like clarification on that as well. From reading their posts it sounds like they are doing a abstraction layer on top of existing banks so they can avoid t
by jauer 16y ago
I'd like clarification on that as well.
From reading their posts it sounds like they are doing a abstraction layer on top of existing banks so they can avoid the paperwork of becoming a actual bank.
That makes me wonder how well their no fee scheme will work in practice.
- Q6T46nT668w6i3m 16y agoRight. We'll handle everything except treasuries and compliance. What makes you wonder about our "no fee scheme"?
- Raphael 16y agoNice user name.
- cmelbye 16y agoHe thinks that it's a layer on top of a bank account from some other bank, so the fees would technically still be in effect. How do cash deposits work for BankSimple?
- ryanhuff 16y agoGood question, but the last time I did a cash deposit was when I sold a car. And the time before that was when I sold another car. That's two times in about seven years for me.
- X-Istence 16y agoProbably the same way they work for ING Direct. You have a different bank account elsewhere (Chase, WellsFargo, BoA, Credit Union) and you transfer the money from that account into your ING Direct account. Besides that, with Direct Deposit I can't remember the last time I deposited a check.
- jackowayed 16y agoI think he worries that since the banks "under" banksimple are already taking a good cut of the "interest gap" between the rate you can lend it out at and the rate you pay customers, there won't be enough left for you to cover your costs. P.S. get a real username?
- jauer 16y agoPrecisely. Also concerned that the underlying banks could be jerks and change terms etc to make their model not work or cause problems. I'm not against trying it, just concerned about how well it will play out. I haven't been looking forward to switching banks before. So far every time I have switched banks it has been to get a local branch to deposit checks. I'm really hoping BankSimple is the last bank I'll ever need but I'll need to see how it works in practice.
- Q6T46nT668w6i3m 16y agoAh, O.K. Fair question. Unfortunately, I couldn't provide you with a satisfactory answer until we announce our partners. I expect we'll be doing so sooner than later.
- ryanhuff 16y agoMy guess is that "they will make it up with volume". Controlling large sums of money that can be moved around behind the scenes to the capture the best rates may provide the consumer a better deal than they can get with their more modest sums. BankSimple passes some of that back to their customer, and keeps the rest. My assumption is they will try to squeeze the margins down from the banks doing the heavy lifting, just as Walmart does with suppliers.