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Opening an SVB Bank Account
I'm having difficulty understanding this "SVB currently charges $25 per month to maintain your bank account and waives this fee with a $25,000 monthly balance.?"
What does it mean in plain english?(especially the waiver part)
- foobarbazetc 8y agoAs long as you have 25k in the account they won’t charge the fee. I thought SVB got rid of the startup accounts? They jacked up our monthly fee to like $100/month and we ended up moving to Chase.
- gesman 8y agoWow. They charge people for privilege of giving them $25k+ to reinvest at their discretion for their own benefits? This is lol.
- ian0 8y agoIt is completely bonkers. But it seems to be working for them, apparently they done quite well last year - got some nice tax cuts too! https://www.fool.com/investing/2018/04/27/svb-financial-groups-first-quarter-earnings-soar-o.aspx https://www.fool.com/investing/2018/04/27/svb-financial-grou...
- cascom 8y agoAdministering a checking account is not cost-less. Looks like SIVB’s return on assets is 1.87% [1] implying $467 of annual revenue for the account at $25k average balance. This is probably more or less break-even (maybe it’s $200?) - point being is they lose money on small accounts... [1] https://finance.yahoo.com/quote/SIVB/key-statistics?p=SIVB https://finance.yahoo.com/quote/SIVB/key-statistics?p=SIVB
- ripalsanghani 8y agoThey'll waive the $25/month fee if you maintain a $25K balance every month.
- cascom 8y agojust note the that the $25k is a an average daily balance (so ~$750k in the account for 1 day a month or $25k in the account everyday of the month...)
- taulantmehmeti 8y agoThanks for the replies, since i'm outside of U.S I wanted to open a U.S bank account through Stripe Atlas.