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Most banks raise capital by holding deposits from customers. If the bank now tells me that it's going to charge me -1% for my savings account, I'm going to pull
by URSpider94 12y ago
Most banks raise capital by holding deposits from customers. If the bank now tells me that it's going to charge me -1% for my savings account, I'm going to pull that money out and keep it in a safe.
Think about how aggressively banks compete on "no fee" accounts, and how aggressive customers are about moving their money to avoid fees. Mint, for example, practically sounds an alarm on my phone whenever I get charged a bank fee.
- thaumasiotes 12y agoYou might think twice about the safe if you had to keep, say, $800,000 in there.
- URSpider94 12y ago1% of $800,000 is $8,000. I can rent multiple large safe deposit boxes in that same bank, with plenty of room for 8,000 $100 bills, for a few hundred $ per year.