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How do they keep $1.08 for every $1 deposited? Do they have some sort of magic money printing machine? Or do I deposit a dollar and only get ~$0.92 in my accoun
by gerad 4y ago
How do they keep $1.08 for every $1 deposited? Do they have some sort of magic money printing machine? Or do I deposit a dollar and only get ~$0.92 in my account? If the latter, that seems like a pretty bad deal.
- lxgr 4y agoI suppose the 8 cents could be shareholder capital? It's a pretty unclear why anybody would want to be a shareholder, though.
- unmole 4y ago> It's a pretty unclear why anybody would want to be a shareholder, though. Yeah. It doesn't sound like a great idea. Sure, the bank can charge fees for maintaining accounts. But what do you do if you suddenly have a large influx of deposits? To maintain the 108% ratio you'd have to raise additional capital, fine. But what happens when deposits fall? Presumably that would reduce the fees collected and thereby reduce earnings per share with no feasible way getting out of the situation.
- UncleMeat 4y agoEspecially given that you’d need to be an interesting person to choose to keep your cash in a bank account that charges a fee rather than pays interest in todays world.
- rrobukef 4y ago""Due to a larger than expected number of deposits we are obligated to introduce an 8% increase deposit limit fee.""
- lxgr 4y agoI suppose they could make holding stock mandatory too…?