Wed 20 Feb 2008
Many people have the misunderstanding that banks work for you. Many also have the understanding that banks won’t do anything to help you unless it is in their self interest but don’t allow this understanding to change their behavior or their overall beliefs. There are few people that are willing to take the actions needed to better their situation and that is ok.
You are reading this because you are interested in making your situation better.
So, in an effort to try something new, here is a rant about why you should open a high yield checking account.
Getting a decent rate for your savings account isn’t that difficult. The banks take your deposit and put it in a money market account which yields a high interest rate. Most checking accounts don’t do this because there is more account activity in checking account. This makes the task of having checking account funds in a money market almost impossible…doesn’t it? Nope. The fact is that that whether you are dealing with $100 or $100,000 in your checking account, it still doesn’t add up to much in terms of the overall business that banks handle. There is no reason why your checking account shouldn’t be paying you interest.
How much interest does your checking account yield?
Do you EVER pay ATM fees?
Do you ever pay for new checks?
Do you feel that the bank you hold your checking account with does everything that they possibly can to reward you for choosing them?
If your checking account doesn’t pay interest, your bank is taking advantage of you because you are providing them with interest free capital that your bank can lend out and make money.
Are you a patsy? (1)
If you pay ATM fees, your bank is taking advantage of you because most bank have chosen to form an imaginary barrier that costs anywhere from $1 to $4 per transaction when the actual transaction cost to the bank is $0. They are literally taking your money just because they can.
Are you a chump?(2)
If you pay for checks, fees because your balance is ‘too low,’ fees because you want to download your transaction into Quicken, Money, Yodlee, or any other money tracker…or any fees whatsoever, your bank is taking advantage of you. The plain and simple fact is that these services should be provided as a cost of business but they haven’t been. Why? Because no one said that banks have to be there to help you…in fact, the banks are striving to boost their profit margins to please shareholders; most banks aren’t there to help you.
If you put a frog in boiling water, it jumps out because it realizes that being in boiling water is a bad situation. If you put a frog in lukewarm water and proceed to heat the water until it boils, the frog will contently sit in the pot and boil to death. Why? Because a slow and steady rise in temperature keeps the frog unaware of the potentially harmful situation it is in. (3)
You are a frog and banks are heating up the water. They will continue to nickel and dime you because there is no alternative…is there?
Charles Schwab has a high yield checking account that pays 3% interest, reimburses you for all ATM fees, give you free checks, debit card, and still FDIC insures your money just like your current bank. Charles Schwab is taking the high ground, rewarding their customers and providing top notch service. I guess the question is whether or not you are going to continue to be a patsy, a chump, and a frog in boiling water OR are you going to come on over to the bank that actually rewards you?
You can easily link all of your account to Schwab and out of curiosity, I checked how long it takes to transfer money from a Schwab investment account to a Schwab checking account. Results? 1 second. Before I could even refresh the page, the transfer had taken place. I think that being able to quickly move your capital from one account to another is an absolute requisite in choosing an account.
If you think that all banks will start to offer these same perks, you are wrong. There are just too many individuals who pay too little attention to the little details and will stay with the current system that rewards the banks and their shareholders instead of the actual customers.
On second thought, don’t change banks, please continue to use a system that takes advantage of you and spends every waking moment trying to make more money from their customers. I will continue to put all interest from my checking account into the stocks of those banks. You will become poorer as a result and I will become more wealthy because I use the system to my advantage and you simply ‘can’t be bothered to spend a couple minutes improving your life.’ (4)
Please do your own research and compare your current checking account with the account options Schwab offers or you can take my word for it because I’m a geek that already did the research for you.
Get a better bank account and be rewarded for your loyalty instead of shunned and taken advantage of.
Open a Charles Schwab checking account. Today.
Please e-mail me with any questions you have. My e-mail address is email@example.com. You can also sign up for my RSS feed here.
Hope everyone is having a great week!
n. pl. pat·sies Slang
A person easily taken advantage of, cheated, blamed, or ridiculed.
A plain sucker, someone who expects nothing and is granted nothing in return.
(2)chump 1 (chmp)
A stupid or foolish person; a dolt.
I have never tried this experiment. I do not suggest you try this experiment. I heard it on a nature show or something and I think that it serves as a good example.
Of course I am joking. I desire what is in your self interest. Seriously…open a Charles Schwab checking account.