Working under the impression that Tax Day remained April 15, I spent a bit if time in early March accumulating paperwork and completing the ‘tax planner’ supplied by our CPA. Cursed with a good bit of obsessiveness, I even went on-line to review all the checks and automatic payments made in 2019 from our checking account.
A few days later I went on-line to review of our checking account. Surprise! I found a new entry: ADDITIONAL ACCOUNT HISTORY FEE, $9.95.
Yes, my bank charged me better than the bar price of a double Jameson’s for the ability to look at my own checks.
This fee is atop the monthly $3.00 Service Fee (for our once ‘totally free checking account’) and the Identity Theft protection fee.
Noninterest income makes up a significant portion of most banks’ revenue. As of the first quarter of 2018, noninterest income was a full 34 percent of total bank operating revenue (defined as the sum of net interest income and noninterest income), or $68 billion out of $200 billion. — The Federal Reserve Bank of Cleveland
My $9.95 + $3.00 + $8.95 gets pretty close to being real money.
Why bring this up now?
Better than 14 million American adults don’t have checking accounts. And, Congress and the President plan to send them checks.
As expensive as it is to have a checking account, accepting money without one can be an expensive hassle for struggling families.
Back in the mid-1980’s, for example, the agency I worked at received 100 Neediest Cases funds to share with folks. One lady lamented that she’d lose $10.00 of her $50.00 to the fee the neighborhood liquor store charged to cash a check. (Merry Christmas.)
So, those virus relief checks will be a boon for some liquor stores, check cashing stores and others who “help” the unbanked. To get their money some families may pay 5% or more off the top in fees. A family of four getting $3,400.00 [2 x $1,200.00 + 2 x $500.00] loses $170.00 or more of their money.
Yes, Walmart is cheaper with a $6 fee for checks over $1,000: Walmart isn’t prepared for hundreds of families per store with four-figure checks.
Then, of course, will come the Money Order fees to convert that government money into rent, utility payments and such. Fees range from 88¢ to $15.00 per order : that family of four could wave bye-bye to another $30.00 of that check.
In other words, whether you have a bank account or don’t, someone gets a chunk of your money. Those with the least pay the most.
The Cadillac and Mercedes set (which includes every member of Congress and much of the national media) obviously have checking accounts. Under the proposed scheme most of them won’t get virus stipends, so, don’t expect to hear how many of our neighbors won’t get to enjoy all of their new money.
That’s just the way it goes.
Glenn