The beginnings of the end for low income banking

Here is news that is far from new, banks in America are looking to cut off the perceived dead weight of low income bankers. This is old news to me because I know a guy who worked in a banking industry and he told me straight out about how if you’re not putting big paper in your account the banks really don’t want your money back in 99’. The problem is like everything in our country that has changed around those in low income areas find themselves living by an old ideology. That old way of thinking is to put what you can in the bank and let the money grow over time. That’s no longer is that case and may not have been really, if it takes you 4 to 5 years to get 5 to 6 thousand dollars in your account with a low income job there really will not be much growth at all.

 Now banks say these new fees to all the hand tying regulations that have been placed on them. So the theory is to cut off the low income banker or if they are willing to pay fees for such things that just a few years back were promoted to encourage banking with that bank, fine. Yes the things that will now have high fees are the very things that were in commercials and local tellers themselves tried to sell you on. The debit card, the low amount of money you can put in to start an account (I know for a fact Bank of America just as far back as 03 had it where you could start an account with just $25) and the low minimum balance or with some banks no minimum balance at all. Who was that really aimed at? It couldn’t have been targeted for those who already had great jobs and could put half a check in the bank and not worry about bills. Now there will be crazy fees like a fee for NOT banking online? I remember that was highway robbery at one point, you were charged a fee to just sign up with some banks online. It got so bad that bank commercials would mention online banking asking if you’re tired being charged for online banking, free online banking were those banks gimmicks to get you to bank with them. The thing is as impossible as it seems by today’s world people still don’t have computers or a smart phone so you’ll be charged for being poor and  behind the times. Just a few years ago banks few cool with low income people because that’s where they got their extra money from due to overdraft fees of some sort and non bank ATM usage fee that went up to almost $4 last time I heard. Now banks are looking to do away with those in a lower income bracket all together. What’s odd is now there are more benefits to banks. Free online banking, the non bank ATM fees may be reduced and some banks will reduce the overdraft free from $25 to smoothing lower. The catch you have to have lots of money and be willing to have multiple accounts, a savings, checking and whatever else you need has to be done with your bank. Low income people are looking to just have a savings most of the time and that’s not enough for banks anymore.

 My issue isn’t so much that banks are doing this it’s the fact that people aren’t going to be aware of this. This isn’t major news that banks will be frustrating and taking away what money a low income banker does have in their account away many times leaving a person owing the bank. That just sounds wrong what money was saved up now do to new fees will be taken away so now you don’t even have that money, sad. And to even leave your bank cost so there is more of your hard earned money you’re trying to save lost to the bank  So more people of lower income will most likely first complain to friends and family then to a teller in the bank (one they feel they have a good rapport with).. Crazy thing the teller may say the bank sent emails out notifying people of the new changes. News papers and news local or national aren’t really letting the fact be known in a big way if at all.

 One bright spot that was given on the show I heard was to try Credit Unions. Credit Unions have a bad silent rap for some reason, could be from what I’ve seen at the Credit Unions I’ve been in they all have left over furniture from the 70’s, really look at  their chairs. That being said there is a more to gain being a low income person with a Credit Union. All those crazy fees that will be coming out the woodwork next month will not be there at a Credit Union and the interest rate will be lower since it is a not for profit institution. Unlike banks you’re not seeing Credit Unions a lot in advertising or news (good or bad) so you have no idea what they have to offer to begin to compare them with banks. It might be wise to check around and see where a Credit Union is locally if you’re a low income worker looking to save your money.


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