The potential charges, says Marianne Lake, CEO of consumer and community banking at JPMorgan, are a result of new regulatory rules that cap overdraft and late fees. Lake says Chase will be passing along those increased expenses to customers, which would put an end to now-free services such as checking accounts and wealth management tools. And she says she expects other banks will follow suit.
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Banks don’t actually lend out people’s savings. When they create loans, they create that money out of thin air. And fractional reserve banking (A.K.A. the “money multiplier”) is a myth.
Only insofar as you would say they destroy money supply when a loan is repaid. They just create a credit and a debit that cancel out.
Correct, the principal is essentially destroyed on payment. Once the loan is payed off, all the money that the bank had originally created has been destroyed.
Same with charging late fees, overdraft fees, etc. It’s just all made up money.
This is a fundamentally different thing. When you go to pay the fees they charge you, you don’t get to create that money out of thin air.
It has been a constant source of amazement to me over the past couple decades that people give their money to banks instead of credit unions. They are better in every single way unless you are one of those last few people who actually have to go to a branch to deposit a paycheck or have a need to visit your financial institution in 13 different states or something. I average less than 1 visit a year to mine, they have no fees for anything except ordering checks (and who the fuck needs those anymore?) and I get free $5,000 in overdraft protection on my account, only have to pay nominal interest if I dip into it. No ATM fees if I use a credit union co-op ATM to get cash (and who the fuck needs that anymore?) Easy peasy and they aren’t trying to wring every drop of blood out of my bank account.
If you’re curious about who still needs checks, I need them for random things for my kid’s school because they themselves are ancient. I also know some people who refuse to pay their rent electronically because some asshole landlords love to tack on bullshit “electronic payment” fees. But I agree with you in every single way. I wish credit unions were more accessible in more areas though. It’s not like you’ll find out around every block like a traditional bank.
Look at the map of your area and see what’s there. This is only the branches - for atm, any 711 has a navy Federal credit union ATM that should link to your bank account.
Ally (GMAC) offers 0.1% interest on checking accounts and 4.2% on savings accounts. No monthly or yearly management fees just for having the account. Same kind of ATM sharing you’re talking about, but they will also reimburse me $10 a month in ATM fees which is really nice because how often do you really go to an ATM?
Credit unions are nice and definitely better in some senses, but the benefits I described I’ve not seen offered by any credit unions in my area. I’m curious what sort of interest rates you get.
Yeah, I don’t imagine some of the online banks changing their operations, as places like Ally already provide a lot of cover for things like overdraft.
In that scenario it becomes another reason to not do business with JP.
That seems like a pretty awesome rate. I keep all my extra money in a HYSA so I never cared much about the CU rates, but you’re definitely beating my CU for anything over $2k. They give 5% for that but it drops sharply after the first 2k.
They have no physical locations, so if you need that kinda stuff, it’s a bad fit. If you don’t though, you get the savings passed along in a generally better than market rate.
My landlord requires checks for rent
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The way you’re presenting this seems pretty fishy. There’s no way to guarantee an 18% return without an equal dose of risk. Interest on savings accounts are guaranteed, up until they change the rate. So that’s apples to oranges.
What is your bank’s wealth management team doing for you? I’ve always assumed they were overpriced and set up to sell their own products.
Yup, they’re a scam that just charges a fee to park your money in index funds.
86 million customers warn JP Morgan Chase they may have to start paying the money into a different bank account.
Might as well switch to a credit union while you’re at it.
I’d be surprised if Chase actually did this. This is just ammo for pro-corporate politicians and lobbyists. “Government rules are going to make it worse for people, see? Stop making rules or all the banks will have to do this!”
It’s bullshit. Keep making rules. Big banks are dangerous.
Oh no! I guess I’ll have to continue not doing business with the giant pile of shit that is Chase bank.
Haha. I too barely (sarcasm) dodged this possible new fee, by refusing to do business with Chase Bank, for many prior years, because they seemed awful well before this. Whew!
All CEO’s have that smug look in photos, really shows off the sociopathic need to make things worse inside them. Like an abusive spouse, we made them do it!
Perfect timing, just a few weeks ago I started switching to a credit union
I closed mine a bit ago. bye douchebags.
Chase never sided with me in any dispute when I got ripped off. And I ran a business through them for years.
Their CEO rapped kids w Epstein. Fuck em
So it’s an end to financially strapped customers being squeezed by exorbitant late/overdraft fees to fund free accounts for everyone else.
Sounds like that was always a screwed up business model.
Also, when the CEO announces price increases and says “expects other banks will follow suit” that is designed to give cover to the other banks. JP Morgan takes the reputational hit for being first, to make it easy for the rest to raise prices also. Collusion in the open, so that JPM doesn’t lose customers to competitors.
Join a credit union. Fuck the banks.
So what they’re really saying is 86 million people need to get a credit union. You all will appreciate it, it’s way better.
I’ve had zero issues with Stanford Federal Credit Union. Get out of big banks
CEO bonus go up
Cool, I’ll just factor that in to my Chase bank account signup bonus math. They have really crappy interest rates, so there’s no way I’m paying for a service I won’t use for free…
There are plenty of competitors, especially with people needing cash less and less…
American pleb showed a lot of will to pay these parasites. Will this time be any different?
I use Monero, fuck all financial institutions
