The second largest bank in the United States is now to charge $12 a month for an ordinary bank account popular with some low income earners.
“All remaining eBanking customers with the Charlotte, N.C., lender were switched into accounts that charge a $12 monthly fee unless the customer has a direct deposit of $250 or more or a minimum daily balance of $1,500,” WSJ reports.
Freelance workers, therefore, might not qualify as they do not get paid by direct debit, with Steve Inskeep of NPR publicly stating:
“$12 per month for a checking account? Some math: If you have $1,000 in the account, $12 is 1.2% of it – per month. Multiply by 12 months: people without much money are charged an annual rate of 14.4% for the bank to hold their money and process checks.”
The move has courted indignation, with 45,000 already signing a petition against the change, especially as the announcement comes days after it was revealed banks made $6.4 billion from ATM fees, overdraft fees, and maintenance fees.
“America’s three biggest banks – JPMorgan Chase (JPM), Bank of America (BAC) and Wells Fargo (WFC) – earned more than $6.4 billion last year from ATM and overdraft fees, according to an analysis by CNNMoney that was verified by S&P Global Market Intelligence. That works out to over $25 in fees annually for every adult American,” CNN says.
Out of network ATM fees are now averaging almost $5 across the United States, while accidentally going over you balance costs you $35 every time it happens. Disproportionately affecting the poorest in society and the “just about managing” as Theresa May called them.
By comparison, Ethereum’s fees currently stand at 7 cent, while Bitcoin Cash fees are below a penny, and neither charges you for just keeping the money on the network.
To the contrary, ethereum will begin later this year providing interest for an eth savings account, called staking. Although details have not yet been finalized, these “saving accounts” might earn 8% yearly interest.
Neither has any overdraft fees, ATM fees, maintenance fees, or any other hidden fees, except for the transaction fees of cents or less. On top, neither can just be printed out away like banks do with their constant money multipliers after charging us for the privilege.
So the underbanked, the unbanked, and now the charged-to-death-banked, may find the global, decentralized, people’s “bank,” as more and more appealing.