If you think you’re getting banking services for free, then hold on while I rattle your cage with a reality check.
The whole idea of “free banking services” is a joke. Seriously.
Answer this question. How does your bank make money by giving away free services?
The answer? It doesn’t.
They give you the illusion their services are free. But if you take time to do some homework, you’ll see how you’re getting ripped-off by many hidden fees.
Let’s start with checking accounts.
Most banks urge you to use a check/debit card over an “old fashioned” checking account.
They say it’s more convenient for you but the truth is, it’s more profitable for them.
They’ll point out that not everyone accepts checks. But, a check/debit card is accepted almost anywhere. They’ll even encourage you to put an app on your phone to make it even more convenient.
To emphasize their point, they’ll say most checking accounts have fees unless you keep a substantial balance in them.
(That’s true but there are ways to get around those fees…Like using their direct deposit services for paychecks.)
So, what’s the big deal about using check/debit cards and, more importantly, where are the hidden fees?
The answer is in your monthly statement.
Oh wait! You don’t get a statement?
You’ve chosen to go paperless instead? (Your banker will stress the importance of going paperless. You know, saving the environment, going green etc.)
Therein lies the problem.
Most people don’t read their statements. Banks know this and even less people look at their electronic statement.
And if you do read your statement it’s very confusing. You need to be an accountant to understand it.
They do that on purpose as well.
Go (HERE) to learn more.