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Cost the bank real money? lol What planet are you from? Banks don’t use their money.
by stuckkeys 3y ago
Cost the bank real money? lol What planet are you from? Banks don’t use their money.
- fshbbdssbbgdd 3y agoIf a bank covers an overdraft, then the customer doesn’t have the money to pay it back, where does the money come from? Whose balance sheet if not the bank’s?
- stuckkeys 3y agoNot their money that is for sure haha
- astrange 3y agoIt certainly does come from their money. When a bank goes bust, all the owners of the bank also go bust. The FDIC doesn't protect /them/.
- ajkjk 3y agoThat is already how it works. The fee doesn't change their ability to get money back whatsoever. The fee just punishes the person who screwed up more than they're already punished by being broke.
- hot_gril 3y agoIt's a loan until the customer pays it back, and loans cost money to cover. Except the overdraft fee is usually some insane % interest, to the point where nobody would take that loan unless it were by accident... So in short, it's a scam.
- janalsncm 3y agoA loan on horrible terms that you’re opted into by default.
- cgriswald 3y agoIf customers are afraid of the fees, they're more likely to keep some minimum balance in their account. Checking accounts don't generally provide interest (or at best, token interest). Multiplied by millions of customers, that $200 sitting in checking rather than savings, CDs, or other instruments is a nice chunk of change for the bank to loan out. I'd want to see some numbers here. But the fees might be directly predatory or they might just be high enough to offset the cost of actually overdrafting to the actual predatory behavior of trying to force people to bank more of their money with lower interest rates.
- hot_gril 3y agoExactly. The checking vs savings thing is bogus too. I asked the banker when I opened my first account as a kid, what's the point of using the checking account at all, she had no answer.
- hot_gril 3y agoCan the 'tude.