The issue here is the consumers who aren’t actively holding any significant sum of money in their accounts for the banks to benefit from. The reality is that the customers who are routinely dealing with overdraft fees are a net negative on the system, hence the fees. I’m not advocating for banks, however they aren’t getting an interest free loan off of the guy living paycheck to paycheck similarly to the guy with “$100,000” in his account.
Just like the other guy Said. People who have a few dollars in their account after paying rent don't bring them any money. Their $2 worth of interest isn't covering the account.
They sit with our money in accounts and pay us 0.02 % to 0.04% and they want to add more fees! Everything is changing in the banking world!! Poor people are the ones that always get hurt the most. Thanks for the heads up Erin.
Exactly; it would be a ridiculous move for JP Morgan to kill their most popular gimmick. And an opportunity for their competitors to eat market share. But a great lobbying tool.
@calminacrisis126 I hate smaller banks because they nanny your money. I finally had it one summer afternoon many moons ago when I couldnt buy plants at home depot and had to call the bank for the 3rd time in the same day to increase my daily spending limit on my DEBIT card. GD why TF do I need your approval to buy a piano, Hawaii vacation, and out door plant. It's my money and I will spend it as much or as little as I want. So I opened a bank of america account and never looked back.
@@thedude5040 Sometimes, people attempt to defraud the system. I know it's annoying, but be glad that they blocked YOUR attempt to go to Hawaii rather than allowing someone else to go to Hawaii on your dime. One is a minor inconvenience. The other takes months to resolve, if it can be resolved at all.
@@bvoyelr the problem is they know I have a high income for the area. I talked with them to permanently increase my debit card but every few months or so it would slide back down to a pitiful $700. My water bill is sometimes $500. Before them I was with a different local bank and had the exact same problems.
They will raise fees on more basic checking accounts only. They said they will be raising fees on those least able to pay it. If they try to raise fees on wealthier customers they will flee. The poor customers don’t have the ability to leave. No other institution is going to want money losing customers. CUs will be raising fees as well, especially on the poor.
@@user-tb7rn1il3q there's nothing that would lead me to believe CUs would do the same. They're member-owned, non-profit, and they're not nearly as predatory as banks. So the incentive to maximize revenue is not as high.
@@user-tb7rn1il3qgrew up poor. I told my girlfriend, “I don’t ever want to be poor again. Poor is where all the bad things are.” I’m glad I had the foresight as a child to go against how my family did things and take advantage of opportunities to make it where I am today.
I dropped them during the pandemic. They tried to say that my worker’s comp didn’t count as a direct deposit. Therefore I wasn’t eligible for free checking. They started charging me $25 a month. I switched to Citizens Bank.
I dropped them years ago in college, had two years of “free banking” but dropped it a a few months in for no solid or discernible reason. Had daily fees stacking up, cause my account was under threshold, then more of that penalty fee plus overdraft, and both kept going and going… till be accumulating money was just gone anytime I would deposit. So had to close the account. The had to roll back all the stupid fees and return me my money. I had before they betrayed the contract’s terms. As well as any money I had deposited during the period. I cannot whatsoever trust them to not screw me again.
This is why I use my bank as little as possible. I keep just enough money there to pay monthly bills with a little more in case I need cash. Everything else stays in my Fidelity accounts. If necessary, I can move cash between the two.
@haitemasd79 technically, yes, but effectively, no. Cash deposited to Fidelity brokerage accounts or Roth IRAs typically sits in a money market fund called SPAXX or FDRXX, which seek to maintain a NAV of $1.00/share. It can be used to buy stocks, or funds, or can be withdrawn often same-day to a bank account. It has about a 5% annual interest rate paid monthly. It's basically a high-yield savings account, but with the same brokerage many of us use for our investment accounts.
Anyone that says banks need to charge these fees to cover some costs, need to remember that banks are NOT struggling at all to cover their costs and the top people at the bank are making millions and millions of dollars a year. So, if the bank raises their costs in other areas, it is NOT the governments fault for this, instead, it is the greed of the executives at the banks.
You and I both knlw there are always those ready to defend big business over the interests of people. It's easier to be "for" the wealthy than for the poor
Do not pay a monthly fee for checking or savings! Switch banks. Just do it. Go with a credit union or a web based bank. I thought I needed to have a local branch, but I really don't need it. And now I have a better banking experience.
Hold lots in the account and vote the fees down! That's the joy of a credit union, you actually get a say in things. If my bank introduces fees, it may finally push me to a credit union. Debated about it for years, but never pulled the trigger
Credit unions near me literally just give you 4% interest on money in your checkings account (up to 20k). The one near me is non-profit so they essentially just give all the money to the people who hold accounts.
Not being punished, we just may have to start paying our fair share for the services we receive. Banking services we received were never free, they were just subsidized by poor people’s fees. Few people with financial resources ever pay those fees
@@JuicerNation no one should be subsidizing anyone. We should all pay our fair share for the services we receive. Global banking infastructure and sustainment isn't free although for you and me we basically get it for free.
Thats the way it is with most anything. Student loan forgiveness punishes those that paid their loans off, chose a degree that pays well enough to make their payments, or didn't go to college in the first place. It only helps the irresponsible at the cost of everyone else. Money saved in a bank is used to fund multiple loans and investments for the institution. We who save and provide those funds pay for those services by the interest income earned from that use of our money. The ones that are overdrafting are not contributing enough to be noteworthy.....hence the overdraft. Now it's the responsible party that pays the price, yet again. It's the bad actors that drive change in the negative. There are numerous examples of things like this happening. Student loan forgiveness Store return fees Mortgage interest fees Etc
@@JuicerNationstupid dumb L take, you’re not subsidizing shit. This is a risk bank take when they take in all of our money, not just the rich and the poor. If they don’t want it then they can exit the business as well. Simping for big banks after what happened in 2008 is the stupidest shit I’ve ever heard. You’re scared they’re not gonna make an extra billion or 2? chase sure as hell ain’t in the red.
@@caseynelson5091lmao it’s always you people that complains about these kind of things. Surprise surprise, we live in a society where it would be beneficial for all of us to be well rather than a few rich assholes and a lot of poor people. Banks make majority of their money with their “products” and this has absolutely nothing to do with the cost of maintaining a checking account. This is a money grab and could potentially hurt their new yacht fund, which I don’t give a fuck. Every business has its risk, chase & banks do not get a free pass. In terms of student loans? Yeah it sucks but it’s also a risk that the government is taking on its people, which in reality is technically us taking on the risk. I’m one of those with 200K loan but I’m a doctor, I’ll pay off my fair share and much more in taxes. Most of those student loans will be paid back, nobody is nuking student loans for most of us. if it’s happening, which reality is it because I need to go there
I’ve never understood the difference. They seem the same to me. In fact, just today I closed a credit union account and transferred the balance to my main Chase checking account, which has never given me any issues and is more convenient than the credit union.
We banked with Chase for many years, but they make several mistakes over recent years so we switched to Schwab. They even refund ATM fees. Also, everything is on auto pay. No fees or interest paid.
I can guarantee if JPM decides to start charging for checking accounts, there will be a mass exodous to firms that dont. Its called competition, an aspect of capitalism.
Financial literacy is a privilege and necessary to build generational wealth families without someone with Financial knowledge will be the most impacted n the least likely to leave.
In 1980s to 1990s California's Banks were charging a monthly fee for checking account, between $5 to $7. Must have been around 1991, BANK of the WEST to celebrate their 117th birthday offered [Free Checking For The Next 117 Years] for new client / new checking account. I jumped on that opportunity and dumped my checking account at Citibank and the $7 monthly fee. With some banks keeping a minimum balance above $1000 was one way to avoid the fee.
I had a free college account with Chase for four years. The first time they charged me a $10 checking account fee, I closed my account that day and switched to a credit union. Best decision ever
I don't think that credit unions will charge checking fees due to the fact that they're owned by their members and most of their costs are are absorbed by other rates that they may have. That's not to say that some credit unions do charge but it is not necessary as the banks make plenty of money by other services
One solution would be to cap the late fees at x% of the overdue amount, with the current fee caps in place. That way you eliminate the $30 charge on the $20 bill, which is the one that annoys folks and gets the headlines, but also ends up hitting those who fail to pay on time. Shifting the cost burden from those who miss payments to everyone else who uses the system by creating other fees or increasing current ones should not be the goal of any new regulations.
I think Chase uses this as an opportunity to move most to the Secure Banking product where you can't overdraft and don't allow for paper checks. Basically like what most online banks do.
IMO this is more greedflation where the blame is put on the consumer instead of the multimillion dollar salaries of the C-suite. Their salaries are just been going higher, while they show us alligator tears about increased operation costs.
My big bank that I’ve had a checking account at since 2003 tried to charge me a fee last week and “waived” it as a courtesy. I called closed the account yesterday. ✌️
Erin, another great segment. #1: I hate junk fees #2: I hate government meddling where it's not really necessary. These "predatory" fees that banks charge ALSO train customers to avoid behaviors that bring those fees into play in the first place. By forcing banks to reduce those fees, they also are enabling the bad financial behavior that the customers need to rid themselves of.
Yes, but most people aren't aware of the fees until they have had a bank for years.. So many of the fees come as a surprise.. I can understand late fees being a thing, though that should just be considered as interest or any fees associated with collections.. Overdraft fees however, are unacceptable.. I guarantee almost everyone would rather have a payment declined rather than being forced to pay another 30-40$ ontop of buying something they may have thought they had the funds for or that were a subscription they forgot about... In college, I had any overdrafts automatically take money from my savings account. THEY STILL CHARGED almost 25$ FOR IT! Most of the time it was some kind of subscription even though I had over 1,000$ in my savings almost at all points in time. I've always been good with finances and never liked or had debt besides a mortgage, but the banking system has very predatory rules that are going to affect people just getting used to it. If they setup guardrails so you CAN'T fail, then why do you need the financial behaviors when they are only relevant because of the very system they created that is meant to be predatory in the first place to suck additional funds from people? They're making all the money off of kids just getting used to the system and then poor people who can never get ahead in the first place. Just get rid of overdraft fees and start declining cards!!
@@djt8518 To answer your question, "Yes", I grew up that way, I scholarshipped/worked my way through college, started out from scratch (this was 1980). And, one thing I learned VERY quickly is that if you don't have money, RENTING someone else's money (via a CC) isn't an answer.
If it were profitable to have monthly account fees, banks would already be doing so. Banks are trying to sway public opinion ahead of the law being passed.
They already have them in place though. Most banks just waive the fee if you meet certain requirements. The problem is for low income people they really don't make money from giving you an account since they are only making a dollar or two off your interest a month.
The good news is competition will limit the growth of any new fees. People will move their business to banks that can meet their needs while not nickel and diming them at every turn.
Actually that's only going to work for people with enough money. Banks can make enough money off of the balance we keep in our accounts and the number of transactions we make to more than offset the cost & risk of providing the account. People with less money won't provide as much benefit & are higher risk, so they will probably be stuck with the fees or become unbanked. I have no clue where that cutoff will be.
People are lazy. Most won't change because it's work, even a little extra work is enough to prevent someone from changing. The others won't move banks because they won't realize about the change. Only the few informed, and ambitious enough, will make the move. Consider high interest credit cards; maintaining a balance, 0 interest card options, balance transfer options and incentives to move. How many people are actually willing to go through the "work" of transferring money around to avoid fees with the current systems in place? Typically only the same people who are willing to follow this type of information, who are also the same people that wouldn't be paying these fees anyway. The info is helpful but ultimately will only truly reach those that this doesn't affect. Those that will benefit from the reduced fees for overdraft etc will also be the ones hurt from the checking fees as well. Those that couldn't care less about not being charged 30$ vs 8$, since we don't overdraft anyway,will move institutions and benefit from reduced fees. It is about education, taking control of your financial situation, and a willingness to put in the work to gain the most.
Basically, JP Morgan is saying, we're too big to regulate. If you take away our ability to squeeze consumers, we will just do it a different way. It's not their costs they would be trying to cover, it's their revenue
Well gee what's the point of having a savings account then? Traditionally the idea is to earn interest but if you're only getting a few pennies per month but then are charged $3/month then what's the point?
I was making the banks richer with overdraft and other fees. When I decided to own and take control of my financial messes, these fees were no longer part of my life. Don't underestimate your ability to change your situation. Track your expenses and see where you are leaking dollars.
Credit card companies are an interesting phenomenon and it's difficult to get a handle on how much risk is involved in their business, so I'd want more information before judging whether their fees were actually justified or not. Hear me out: JP Morgan Chase's revenue is 66 billion with a 20% profit margin -- so 13 billion. If we take the stats in the video on face value -- that these junk fees cost consumers about 3.5 billion and divide that by Chase's market capture (about 10%), these junk fees get them about 350 million per year - or 2% of their profits. (not 2 percentage points. 2 percent -- i.e., it would reduce their profit margins by less than 1 percentage point -- from like 20.9 to 20.1%, for example) That seems to imply that they should just suck it up, buttercup, but when we consider that they're one of the largest lenders in human history (and apparently they have a lot of "no credit limit" cards?), it complicates things. It's like an insurance company -- they have to have big profits, because if Something Bad happens, they'll have to pay out TONS of money. In the same way, Chase has to be able to pay for every transaction of every card holder and carry that debt for as long as the card holder does, and credit card debt is dispensable in bankruptcy, so they statistically just outright lose a certain percentage of the "loans" they've handed out to card holders. What does that cost? I dunno, but it seems fitting for people who use the system irresponsibly by missing payments to bear most of that burden. But at the same time, overdraft protection is obviously stupid -- you have other options (such as to DECLINE THE TRANSACTION), so overdraft protection shouldn't be the default. And we also have to consider the insane interest rates they charge -- albeit, again, they only charge that to stupid customers, so I see it as relatively justified. It's easy to say "lol suck it big banks," but the picture is more complicated than that. I don't think we even have enough access to their financial data to even say whether this is justified. I personally think it falls more into the court of "lol suck it big banks," but it's possible that it's not. Either way, there's enough competition out there for them to think twice about imposing fees on normal, everyday customers. Threaten it all you want, but if you do it, I'll exercise my right to close some accounts!
Yeah, overdraft is what makes the LEAST sense of all.. You can literally have overdraft 'protection' where it automatically takes money from your savings account, but it still will charge you this 20-40$ overdraft fee PER transaction... It's a joke, it's obvious to see why they do it. Because the people who get overdraft fees have no money in the first place and can't lobby or sue against them.
At this point, overdraft fees are completely unnecessary from a technological point of view, and they are, at their core, a regressive and predatory scam. The banks have real-time data on current balances, so it should be impossible for a customer to overdraw. Bad checks are still bad checks, but those are handled differently anyway.
These fees like overdraft or late fees are like speeding tickets, if you get enough, maybe you'll change your wrong behavior. It's called being responsible.
Disagree! It's more likely Chase loses business with customers switching to banks not charging fees. That's the advantage of a competitive market place. Bottom line is that it's more valuable to the banks to have deposits. The value of those deposits gives them the needed leverage to write loans. And, loans generate the real income for Banks... Interest payments. High value clients, those with deep pockets, are the last ones any bank will nickle and dime. That's why they have programs such as $25,000 in combined deposits means opens door for free services that they charge the low value account holders.
Thank you for explaining how businesses will take the opportunity to improve their overall bottom line when challenged with a government strategy that’s not well thought through. Consumers always suffer from lawmakers’ actions, even when their intentions were good.
That would be intelligent, so don't expect it to ever happen. The government should have set up the USPS to handle basic banking (saving/checking/savings bonds) and precious metals purchases over the counter.
The US government isn't competent enough with its budget funded by your taxes and social security. What makes you think the US government will be competent with your savings?
I disagree: junk fees are a good thing, they educate and keep people on their toes, while lowering costs for the financially literate and responsible. The CFPB should be abolished.
It's not a junk fee. If you don't pay your bill on time, or overdraft, that is a choice you make and you should be prepared to pay for it. No financial institution will get away with making up the revenue loss by turning around and charging their financially responsible customers. Banks like JP Morgan Chase are international, yet the CFPB proposal is only applicable to the US market. So I'll transfer my accounts to a different country or put my money in a non-US financial institution. Problem solved.
@@Sylvan_dB Yes. Charles Schwab is struggling. It's corporate greed. The CEO makes $24M/yr. Their staff is also highly paid. Their bank division should make good money because they don't have any banking branches. However, they have fierce competition in the banking division and the brokerage division. So they're struggling. I sleep at night because of FDIC insurance.
I switched from Chase in 2022 to Atlantic Union Bank which still offers free checking and is a great bank in the Mid-Atlantic region. If they ever stop offering free checking then I'll switch again. I've used 7 different banks in my life and I do not accept paying fees just to keep my money in the bank....
Great opportunity for regional banks and national banks with largely online platforms to capture market share. I just migrated my checking accounts to capital one because I like the user interface and I use the capital one venture x credit card as my 1-card system for the travel perks. No fees (yet)! Like most watching this channel, I keep a minimal amount in checking to fund monthly operating expenses but the majority gets quickly swept to an investment account or a high yield savings account for real estate purchases. Banks can make all they want as far as I’m concerned. I own all the big ones as part of my broad market index funds anyway. More fees will eventually translate to more revenue and more dividends paid to shareholders. Best thing to do is be an owner of the financial system instead of making it the enemy. Big banks aren’t going away anytime soon… and they literally facilitate the financial markets we all depend on for wealth creation and management.
Yes, but something you have to consider is that they will do overdraft fees even if the funds are covered by a savings account or other account under the same person's profile.. I used to keep less in a checkings when I was in college but I'd always have like 1,000$ in my savings account. The overdraft system would AUTOMATICALLY draft from my savings, but not without charging me 20-30$ every single time.. If they can't afford the payment then decline the card, don't charge them another 30$ ontop of it for no reason. There is literally zero risk if they just decide to decline the charge.
@@Lolatyou332 Well... There's literally zero money to be made if they just decided to decline the charge. It's the banks. They make money out of no money.
Or they could just decline the payment that would overdraft. Then there would be no need for them to charge a fee. Oh, no, that would mean they would lose out on the money that you already don't have apparently.
I remember when I was in college, I would try to limit my money in checking and put it in the savings account (even though it was literally like .01% interest). I'd accidentally go over on a payment that AUTO DRAFTS from the savings account and then they'd decide to charge 20-30$ extra even if it was like 2 cents over-draft. It's literally fees that target poor people. I closed my savings account since then and just leave basically full emergency fund in my checkings and the rest goes into my brokerage / Roth (ignoring the money that auto-deposits to my 401k.
As someone that manages their finances like an adult, it really upsets me to hear that my banking services might become more costly because other people can't handle their own issues.
Y'all need some compassion. Your services aren't more costly. The fees are are going to be lower. If your cost goes up, it might mean that your "free" services was being paid for by those who can least afford it.
Here’s another way to look at credit card late fees: Lets say a bank has to write off 5% of the credit card receivables due to non payment. Those receivables are written off after 6 months of non payment. All write offs start with a missed payment. So, it follows that late payment fees are compensation for collection efforts and the credit losses.
I want to know why overdraft fee and late fee can be called unexpected fees, if the customer is not responsible of his/her finances, these are the expected consequences😅😅
Classic scenario where the government intervenes and the consumer gets screwed. Guaranteed they will get record profits once they adjust their fees to everyone instead of just those absuing their accounts.
It's not just billions of dollars in lost revenues, it's billions of dollars in lost profits. They're pissed they can't penny pinch the least fortunate through credit cards fees anymore so they're punishing them in a different way. This will basically unbank hundreds of thousands of people who can't afford these maintenance fees or who don't want to pay them because the service used to be free. A "Exploit them or drop them" mentality is what is making this happen.
Problem is the average person doesn’t stay in top of fees or don’t even see when they are charged till it’s too late. Almost no one will leave for a while till they realize.
Savings accounts already have maintenance fees in almost all of the banks that I have been a part of. Any savings accounts with $100 or less (20 years ago) charged a quarterly fees if around 4% or $4. It was frustrating to the point that I had a savings account go negative STRICTLY because of the fees.
If there is only a $3 fee to OF checking accounts, what is the incentive to not overdraw? $8 for a credit card late? Lots of people would never pay $8 fee for another 29 days to make their payment. The loss of capital in a high interest rate environment will make banking more expensive all around and fewer people will have access to credit cards if their score is less than perfect. Annuals fees on cards will increase. In short, this would not be good for the majority of consumers who stay on top of their finances
Woooo. New hairdo! Someone is going somewhere fancy. I don't concern myself with fees. I've never paid them nor do I intend on paying any of them. Banking relationship matters and will almost always eliminate all fees from my experience.
Regulation is what’s supposed to help us consumers (especially lower income Americans). Capping late fees is only the first step of regulating these big bank vultures. The CFPB can add more regulation to close loopholes the banks are trying to take advantage of to take away from the little guy.
WOW very surprised people don't want to pay regular fees to their banks for savings and checking accounts? Well and plus overdraft and other fees already existed before so what is the problem with fees? What is wrong with paying fees for checking, savings, and sometimes (Acorns) investment accounts?
They should just reduce or eliminate the interest rates for keeping money in checking and savings accounts. It is hardly anything to the customer, but it would be substantial when taking account of all customers. Most people don't bank with Chase for the interest so it might not hurt their client retention.
You're not mentioning that the percentage of the population that's unbanked will go up as a result of this. Why would Banks risk their money providing checking & credit cards to people who are not incentivized to repay in a timely manner? There are many ways banks make money off people with money, but fees are where they both profit & reduce risk servicing lower income clients. *Fixed some grammar errors.
#1 I've been there, I've been young and dumb. Got out of a relationship with $12k in CC debt. Worked my butt off to fix it. Slapped with fees for doing the wrong things. Embarrassed myself enough to not do it again. #2 Don't charge me a fee to make up for someone else's stupid mistakes.
The problem is, what if there were guardrails, so that you couldn't make those mistakes and receive the fees in the first place? That's really what needs to happen, at least referring to overdraft fees.. Who cares about 'learning' the system if the system itself is designed so that people WILL fail and then the system benefits directly from it's people failing?
Valmac, Same here. Young and dumb. Got the t-shirt. Lesson learned. Decided I've had it with the banks and I would create enough margin in my life to not be their #1 customer.
@@tjr4459 If you work for a for profit company, your paycheck and all your benefits come from the "greed fund" the company generates to keep you and hire more and innovate and contribute to charitable causes etc. Companies are always looking for ways to maximize profits, If you've ever had your own business or side hustle, you'd understand this principle.
Wow... $3-8 fees? I knew that regulations were going in place, but somehow assumed they would cap it at $20 and cap to once per day or week, and not for each and every little transaction.
Sorry... I am not used to you with your hair up and when I started the video I was like "wait... what?". Anyway, great content and I agree with these late charges. It sucks. I really like these new regulations.
Most banks in Canada already charge fees. We have very limited banks available for free accounts. Most of the free ones are digital, so if you need in person help, you can’t get it… it’s so frustrating to pay a bank to “store” your money. Ridiculous!
The way I see it... If people just do what they suppose to.. EVERYONE can avoid these junk fees.. I have bank accounts and have done whats right to where I am Not giving the bank any money in fees except my interest on my CC.. but even that is very marginal... IF the CFPB gets there way.. then More people will suffer with new junk Fees as like she said.. Banks are not going to do nothing to lose out on profits... This CAN AND WILL Effect Credit Unions regardless on the fact that they are not in for Profits... This will hit them to to be able to stay in business and pay their own mortgages, payroll, etc etc... I say Leave it alone!
Lowering those fees would make no incentive for customers to pay their bills on time. Of course I'd be late if it only cost me $8. Why would anyone pay on time?
Good morning Erin. Informative video and discussion. This is not good news and it will be time to shop around for banking services if some of these possibilities begin to happen. The larger banks will have to compete with smaller local and small region banks for customers and their money, that should be what it's all about. The banks are happy to have and use all the money on deposit and pay virtually nothing to the account holders for the use of their money. Have a good week. Larry, Central Valley, Ca.
Bankers give you an umbrella when it is sunny and take it away when it rains. Love the channel. I have finally started a channel and my bloopers are left in because I am new 😊😊😊😊
If they are talking about these increased "regular" fees in an effort to forestall eliminating the more predatory fees, best believe they are already planning on increasing the "regular" fees whether the changes go through or not. They are just holding off, for now, to see if they can get the best of both worlds.
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Banks are getting free loans when customers deposit money. Charging for checking accounts makes no sense
The issue here is the consumers who aren’t actively holding any significant sum of money in their accounts for the banks to benefit from. The reality is that the customers who are routinely dealing with overdraft fees are a net negative on the system, hence the fees. I’m not advocating for banks, however they aren’t getting an interest free loan off of the guy living paycheck to paycheck similarly to the guy with “$100,000” in his account.
Just like the other guy Said. People who have a few dollars in their account after paying rent don't bring them any money. Their $2 worth of interest isn't covering the account.
Yes it does they want more profit that makes sense that’s why they should go under
@@zeusthegod9264theyre going under like their customers that cant pay their accounts on time or without overdrafting their account.
Banks also use your money it’s called cd Certified Deposit in which you can get paid The banks are a business not a free for all Pay your fees
When my bank charges me for checking, they will no longer be my bank.
You and me both! I've never paid a penny to a bank for checking. In Europe the fees are many. They even charge to get a statement out of a machine.
They sit with our money in accounts and pay us 0.02 % to 0.04% and they want to add more fees! Everything is changing in the banking world!! Poor people are the ones that always get hurt the most. Thanks for the heads up Erin.
This is the point of the free market. Big banks can go that route and lose accounts while a small bank can grow by not preying on retail consumers.
From what I’ve seen the smaller banks are often worse on fees. And interest rates
Exactly; it would be a ridiculous move for JP Morgan to kill their most popular gimmick. And an opportunity for their competitors to eat market share. But a great lobbying tool.
@calminacrisis126 I hate smaller banks because they nanny your money. I finally had it one summer afternoon many moons ago when I couldnt buy plants at home depot and had to call the bank for the 3rd time in the same day to increase my daily spending limit on my DEBIT card. GD why TF do I need your approval to buy a piano, Hawaii vacation, and out door plant. It's my money and I will spend it as much or as little as I want. So I opened a bank of america account and never looked back.
@@thedude5040 Sometimes, people attempt to defraud the system. I know it's annoying, but be glad that they blocked YOUR attempt to go to Hawaii rather than allowing someone else to go to Hawaii on your dime. One is a minor inconvenience. The other takes months to resolve, if it can be resolved at all.
@@bvoyelr the problem is they know I have a high income for the area. I talked with them to permanently increase my debit card but every few months or so it would slide back down to a pitiful $700. My water bill is sometimes $500. Before them I was with a different local bank and had the exact same problems.
I do not like banks. I stay with credit unions
They will raise fees on more basic checking accounts only. They said they will be raising fees on those least able to pay it. If they try to raise fees on wealthier customers they will flee. The poor customers don’t have the ability to leave. No other institution is going to want money losing customers. CUs will be raising fees as well, especially on the poor.
@@user-tb7rn1il3q there's nothing that would lead me to believe CUs would do the same. They're member-owned, non-profit, and they're not nearly as predatory as banks. So the incentive to maximize revenue is not as high.
Same here. 💵
@@user-tb7rn1il3qgrew up poor. I told my girlfriend, “I don’t ever want to be poor again. Poor is where all the bad things are.” I’m glad I had the foresight as a child to go against how my family did things and take advantage of opportunities to make it where I am today.
@@user-tb7rn1il3q I've had a free checking account for DECADES at a Credit Union, why do you think this will change anytime soon?
I dropped Chase when they charged me a maintenance fee because my balance wasn't high enough while working retail part time in the early 2010s.
I dropped them during the pandemic. They tried to say that my worker’s comp didn’t count as a direct deposit. Therefore I wasn’t eligible for free checking. They started charging me $25 a month. I switched to Citizens Bank.
I dropped them years ago in college, had two years of “free banking” but dropped it a a few months in for no solid or discernible reason.
Had daily fees stacking up, cause my account was under threshold, then more of that penalty fee plus overdraft, and both kept going and going… till be accumulating money was just gone anytime I would deposit.
So had to close the account. The had to roll back all the stupid fees and return me my money. I had before they betrayed the contract’s terms.
As well as any money I had deposited during the period.
I cannot whatsoever trust them to not screw me again.
This is why I use my bank as little as possible. I keep just enough money there to pay monthly bills with a little more in case I need cash. Everything else stays in my Fidelity accounts. If necessary, I can move cash between the two.
I do the same thing. 👍
This is the way.
As invistment?
@haitemasd79 technically, yes, but effectively, no. Cash deposited to Fidelity brokerage accounts or Roth IRAs typically sits in a money market fund called SPAXX or FDRXX, which seek to maintain a NAV of $1.00/share. It can be used to buy stocks, or funds, or can be withdrawn often same-day to a bank account. It has about a 5% annual interest rate paid monthly. It's basically a high-yield savings account, but with the same brokerage many of us use for our investment accounts.
Anyone that says banks need to charge these fees to cover some costs, need to remember that banks are NOT struggling at all to cover their costs and the top people at the bank are making millions and millions of dollars a year. So, if the bank raises their costs in other areas, it is NOT the governments fault for this, instead, it is the greed of the executives at the banks.
You and I both knlw there are always those ready to defend big business over the interests of people. It's easier to be "for" the wealthy than for the poor
You are wrong we are talking about billions not millions here even if the top is corrupt doesn't mean that this isn't a problem
How much does the government force banks to keep in reserves?
@@bobbyward2440 I believe 10% liquid at all times
Agree! 👍🏼
Do not pay a monthly fee for checking or savings! Switch banks. Just do it. Go with a credit union or a web based bank. I thought I needed to have a local branch, but I really don't need it. And now I have a better banking experience.
These burdensome regulations have got to go. Without them, how are large bank cartel CEOs supposed to make tens of millions?
That second beach front vacation estate isn't going to buy itself.
Love the sarcasm!
I hope credit unions don't start adding junk fees.
Hold lots in the account and vote the fees down! That's the joy of a credit union, you actually get a say in things.
If my bank introduces fees, it may finally push me to a credit union. Debated about it for years, but never pulled the trigger
Credit unions near me literally just give you 4% interest on money in your checkings account (up to 20k).
The one near me is non-profit so they essentially just give all the money to the people who hold accounts.
@@Lolatyou332 Wow, mine barely pays interest even on savings.
@@Lolatyou332by definition, credit unions are not-for-profit! They’re a great place to keep money.
So in essense, the ones who ultimately get punished are the one who are prudent with their accounts.
Not being punished, we just may have to start paying our fair share for the services we receive. Banking services we received were never free, they were just subsidized by poor people’s fees. Few people with financial resources ever pay those fees
@@JuicerNation no one should be subsidizing anyone. We should all pay our fair share for the services we receive. Global banking infastructure and sustainment isn't free although for you and me we basically get it for free.
Thats the way it is with most anything. Student loan forgiveness punishes those that paid their loans off, chose a degree that pays well enough to make their payments, or didn't go to college in the first place. It only helps the irresponsible at the cost of everyone else.
Money saved in a bank is used to fund multiple loans and investments for the institution. We who save and provide those funds pay for those services by the interest income earned from that use of our money. The ones that are overdrafting are not contributing enough to be noteworthy.....hence the overdraft.
Now it's the responsible party that pays the price, yet again. It's the bad actors that drive change in the negative.
There are numerous examples of things like this happening.
Student loan forgiveness
Store return fees
Mortgage interest fees
Etc
@@JuicerNationstupid dumb L take, you’re not subsidizing shit. This is a risk bank take when they take in all of our money, not just the rich and the poor. If they don’t want it then they can exit the business as well. Simping for big banks after what happened in 2008 is the stupidest shit I’ve ever heard. You’re scared they’re not gonna make an extra billion or 2? chase sure as hell ain’t in the red.
@@caseynelson5091lmao it’s always you people that complains about these kind of things. Surprise surprise, we live in a society where it would be beneficial for all of us to be well rather than a few rich assholes and a lot of poor people. Banks make majority of their money with their “products” and this has absolutely nothing to do with the cost of maintaining a checking account. This is a money grab and could potentially hurt their new yacht fund, which I don’t give a fuck. Every business has its risk, chase & banks do not get a free pass.
In terms of student loans? Yeah it sucks but it’s also a risk that the government is taking on its people, which in reality is technically us taking on the risk. I’m one of those with 200K loan but I’m a doctor, I’ll pay off my fair share and much more in taxes. Most of those student loans will be paid back, nobody is nuking student loans for most of us. if it’s happening, which reality is it because I need to go there
Close your bank account and sign up with a credit union. No BS Fees. What fees they have are much more reasonable. Much more consumer focused.
I did that over 30 years ago. Wonderful suggestion.
@@daveschmarder-1950 Me as well... Best thinking I ever did. It is obvious they do not really want any consumer business, unless you are rich.
Credit unions are far superior
I’ve never understood the difference. They seem the same to me. In fact, just today I closed a credit union account and transferred the balance to my main Chase checking account, which has never given me any issues and is more convenient than the credit union.
@@MayTheSchwartzBeWithYou , If you can maintain a certain balance.
I've been with my credit union since 1982. Our kids opened accounts at the credit union as well. Everyone I know uses credit unions and not banks.
We banked with Chase for many years, but they make several mistakes over recent years so we switched to Schwab. They even refund ATM fees. Also, everything is on auto pay. No fees or interest paid.
I wish Schwab did more on the bIz side. I hope they will do a biz checking account since they only offer brokerages for biz and nothing else.
I can guarantee if JPM decides to start charging for checking accounts, there will be a mass exodous to firms that dont. Its called competition, an aspect of capitalism.
I would hope! More power if ppl refuse and leave.
Financial literacy is a privilege and necessary to build generational wealth families without someone with Financial knowledge will be the most impacted n the least likely to leave.
I think it's cute that you believe capitalism has competition.
Most banks do charge for checking accounts by having minimum requirements.
I already left, switched to SOFI.
In 1980s to 1990s California's Banks were charging a monthly fee for checking account, between $5 to $7.
Must have been around 1991, BANK of the WEST to celebrate their 117th birthday offered [Free Checking For The Next 117 Years] for new client / new checking account.
I jumped on that opportunity and dumped my checking account at Citibank and the $7 monthly fee.
With some banks keeping a minimum balance above $1000 was one way to avoid the fee.
1:00 Ticketmaster is itself a junk fee
Amen to that. I cringe every time I have to use them.
@@tristonwebb7045 no one. Tickmaster: $25 fee for breathing air during the concert or bring your own oxygen.
I had a free college account with Chase for four years. The first time they charged me a $10 checking account fee, I closed my account that day and switched to a credit union. Best decision ever
I don't think that credit unions will charge checking fees due to the fact that they're owned by their members
and most of their costs are are absorbed by other rates that they may have. That's not to say that some credit unions do charge but it is not necessary as the banks make plenty of money by other services
One solution would be to cap the late fees at x% of the overdue amount, with the current fee caps in place. That way you eliminate the $30 charge on the $20 bill, which is the one that annoys folks and gets the headlines, but also ends up hitting those who fail to pay on time. Shifting the cost burden from those who miss payments to everyone else who uses the system by creating other fees or increasing current ones should not be the goal of any new regulations.
I think poor customers fees subsidize the cost of banking for everyone. This is attempting to remove that subsidy.
I think Chase uses this as an opportunity to move most to the Secure Banking product where you can't overdraft and don't allow for paper checks. Basically like what most online banks do.
IMO this is more greedflation where the blame is put on the consumer instead of the multimillion dollar salaries of the C-suite. Their salaries are just been going higher, while they show us alligator tears about increased operation costs.
My big bank that I’ve had a checking account at since 2003 tried to charge me a fee last week and “waived” it as a courtesy. I called closed the account yesterday. ✌️
Erin, another great segment. #1: I hate junk fees #2: I hate government meddling where it's not really necessary. These "predatory" fees that banks charge ALSO train customers to avoid behaviors that bring those fees into play in the first place. By forcing banks to reduce those fees, they also are enabling the bad financial behavior that the customers need to rid themselves of.
Yes, but most people aren't aware of the fees until they have had a bank for years.. So many of the fees come as a surprise..
I can understand late fees being a thing, though that should just be considered as interest or any fees associated with collections..
Overdraft fees however, are unacceptable..
I guarantee almost everyone would rather have a payment declined rather than being forced to pay another 30-40$ ontop of buying something they may have thought they had the funds for or that were a subscription they forgot about...
In college, I had any overdrafts automatically take money from my savings account. THEY STILL CHARGED almost 25$ FOR IT! Most of the time it was some kind of subscription even though I had over 1,000$ in my savings almost at all points in time.
I've always been good with finances and never liked or had debt besides a mortgage, but the banking system has very predatory rules that are going to affect people just getting used to it. If they setup guardrails so you CAN'T fail, then why do you need the financial behaviors when they are only relevant because of the very system they created that is meant to be predatory in the first place to suck additional funds from people?
They're making all the money off of kids just getting used to the system and then poor people who can never get ahead in the first place. Just get rid of overdraft fees and start declining cards!!
Have you ever been poor?? If you don't have the money then you don't have the money and training won't matter
@@djt8518 To answer your question, "Yes", I grew up that way, I scholarshipped/worked my way through college, started out from scratch (this was 1980). And, one thing I learned VERY quickly is that if you don't have money, RENTING someone else's money (via a CC) isn't an answer.
If it were profitable to have monthly account fees, banks would already be doing so. Banks are trying to sway public opinion ahead of the law being passed.
Completely true!
They already have them in place though. Most banks just waive the fee if you meet certain requirements. The problem is for low income people they really don't make money from giving you an account since they are only making a dollar or two off your interest a month.
Not totally sure on this, but I believe the wealth Management Services offered by banks are actually sales for high load mutually funds
Yup
Some are, some aren't
The good news is competition will limit the growth of any new fees. People will move their business to banks that can meet their needs while not nickel and diming them at every turn.
Actually that's only going to work for people with enough money. Banks can make enough money off of the balance we keep in our accounts and the number of transactions we make to more than offset the cost & risk of providing the account.
People with less money won't provide as much benefit & are higher risk, so they will probably be stuck with the fees or become unbanked.
I have no clue where that cutoff will be.
That only works when there isn't a monopoly.
People are lazy. Most won't change because it's work, even a little extra work is enough to prevent someone from changing. The others won't move banks because they won't realize about the change. Only the few informed, and ambitious enough, will make the move.
Consider high interest credit cards; maintaining a balance, 0 interest card options, balance transfer options and incentives to move. How many people are actually willing to go through the "work" of transferring money around to avoid fees with the current systems in place? Typically only the same people who are willing to follow this type of information, who are also the same people that wouldn't be paying these fees anyway.
The info is helpful but ultimately will only truly reach those that this doesn't affect. Those that will benefit from the reduced fees for overdraft etc will also be the ones hurt from the checking fees as well. Those that couldn't care less about not being charged 30$ vs 8$, since we don't overdraft anyway,will move institutions and benefit from reduced fees.
It is about education, taking control of your financial situation, and a willingness to put in the work to gain the most.
Basically, JP Morgan is saying, we're too big to regulate. If you take away our ability to squeeze consumers, we will just do it a different way. It's not their costs they would be trying to cover, it's their revenue
💯
Thinking your too big to fail is a good way to fail 😂😂
Or consumers could simply learn to budget. It’s actually not that hard to avoid junk fees…
Sounds like some anti-trust busting is what we chiefly needed.
@@Chris-os5zdyou must work for a bank
Well gee what's the point of having a savings account then? Traditionally the idea is to earn interest but if you're only getting a few pennies per month but then are charged $3/month then what's the point?
Big banks depend on depositors to provide the money they lend out. Hope consumers take a close look at the many benefits offered by credit unions.
I was making the banks richer with overdraft and other fees. When I decided to own and take control of my financial messes, these fees were no longer part of my life. Don't underestimate your ability to change your situation. Track your expenses and see where you are leaking dollars.
Good, we will actually see how much our services actually cost instead of being hidden or distributed unevenly.
Great video! If politicians understand the unintended consequences of laws like this, they confidently avoid mentioning them.
Credit card companies are an interesting phenomenon and it's difficult to get a handle on how much risk is involved in their business, so I'd want more information before judging whether their fees were actually justified or not.
Hear me out: JP Morgan Chase's revenue is 66 billion with a 20% profit margin -- so 13 billion. If we take the stats in the video on face value -- that these junk fees cost consumers about 3.5 billion and divide that by Chase's market capture (about 10%), these junk fees get them about 350 million per year - or 2% of their profits. (not 2 percentage points. 2 percent -- i.e., it would reduce their profit margins by less than 1 percentage point -- from like 20.9 to 20.1%, for example)
That seems to imply that they should just suck it up, buttercup, but when we consider that they're one of the largest lenders in human history (and apparently they have a lot of "no credit limit" cards?), it complicates things. It's like an insurance company -- they have to have big profits, because if Something Bad happens, they'll have to pay out TONS of money. In the same way, Chase has to be able to pay for every transaction of every card holder and carry that debt for as long as the card holder does, and credit card debt is dispensable in bankruptcy, so they statistically just outright lose a certain percentage of the "loans" they've handed out to card holders.
What does that cost? I dunno, but it seems fitting for people who use the system irresponsibly by missing payments to bear most of that burden. But at the same time, overdraft protection is obviously stupid -- you have other options (such as to DECLINE THE TRANSACTION), so overdraft protection shouldn't be the default. And we also have to consider the insane interest rates they charge -- albeit, again, they only charge that to stupid customers, so I see it as relatively justified.
It's easy to say "lol suck it big banks," but the picture is more complicated than that. I don't think we even have enough access to their financial data to even say whether this is justified. I personally think it falls more into the court of "lol suck it big banks," but it's possible that it's not. Either way, there's enough competition out there for them to think twice about imposing fees on normal, everyday customers. Threaten it all you want, but if you do it, I'll exercise my right to close some accounts!
Yeah, overdraft is what makes the LEAST sense of all.. You can literally have overdraft 'protection' where it automatically takes money from your savings account, but it still will charge you this 20-40$ overdraft fee PER transaction...
It's a joke, it's obvious to see why they do it. Because the people who get overdraft fees have no money in the first place and can't lobby or sue against them.
At this point, overdraft fees are completely unnecessary from a technological point of view, and they are, at their core, a regressive and predatory scam. The banks have real-time data on current balances, so it should be impossible for a customer to overdraw. Bad checks are still bad checks, but those are handled differently anyway.
These fees like overdraft or late fees are like speeding tickets, if you get enough, maybe you'll change your wrong behavior. It's called being responsible.
Disagree! It's more likely Chase loses business with customers switching to banks not charging fees. That's the advantage of a competitive market place. Bottom line is that it's more valuable to the banks to have deposits. The value of those deposits gives them the needed leverage to write loans. And, loans generate the real income for Banks... Interest payments. High value clients, those with deep pockets, are the last ones any bank will nickle and dime. That's why they have programs such as $25,000 in combined deposits means opens door for free services that they charge the low value account holders.
This is crazy I hope this law does not come to pass it’s going to really suck for financially responsible people
Thank you for explaining how businesses will take the opportunity to improve their overall bottom line when challenged with a government strategy that’s not well thought through. Consumers always suffer from lawmakers’ actions, even when their intentions were good.
The U.S government needs to consider Postal Banking. It is done in other countries.
That would be intelligent, so don't expect it to ever happen. The government should have set up the USPS to handle basic banking (saving/checking/savings bonds) and precious metals purchases over the counter.
The US government isn't competent enough with its budget funded by your taxes and social security. What makes you think the US government will be competent with your savings?
I disagree: junk fees are a good thing, they educate and keep people on their toes, while lowering costs for the financially literate and responsible. The CFPB should be abolished.
It's not a junk fee. If you don't pay your bill on time, or overdraft, that is a choice you make and you should be prepared to pay for it. No financial institution will get away with making up the revenue loss by turning around and charging their financially responsible customers. Banks like JP Morgan Chase are international, yet the CFPB proposal is only applicable to the US market. So I'll transfer my accounts to a different country or put my money in a non-US financial institution. Problem solved.
Schwab Bank is awesome! Free checking and savings. No minimum balance. ATM fees waived. Remote deposits. Etc. Local branches aren't needed.
Schwab Bank is struggling. They just announced they are going to start sharing some liabilities with TD Bank in hopes of getting on stable footing.
Crowdstrike has entered the chat
@@Sylvan_dB Yes. Charles Schwab is struggling. It's corporate greed. The CEO makes $24M/yr. Their staff is also highly paid. Their bank division should make good money because they don't have any banking branches. However, they have fierce competition in the banking division and the brokerage division. So they're struggling. I sleep at night because of FDIC insurance.
wish they start doing business checking accounts
@@FireyCam I used their standard checking account as a business account for a while. They just don't call it a business account.
I switched from Chase in 2022 to Atlantic Union Bank which still offers free checking and is a great bank in the Mid-Atlantic region. If they ever stop offering free checking then I'll switch again. I've used 7 different banks in my life and I do not accept paying fees just to keep my money in the bank....
Great video Erin. I like your new hairdo!
Thank you Erin
Great opportunity for regional banks and national banks with largely online platforms to capture market share.
I just migrated my checking accounts to capital one because I like the user interface and I use the capital one venture x credit card as my 1-card system for the travel perks. No fees (yet)!
Like most watching this channel, I keep a minimal amount in checking to fund monthly operating expenses but the majority gets quickly swept to an investment account or a high yield savings account for real estate purchases.
Banks can make all they want as far as I’m concerned. I own all the big ones as part of my broad market index funds anyway. More fees will eventually translate to more revenue and more dividends paid to shareholders. Best thing to do is be an owner of the financial system instead of making it the enemy. Big banks aren’t going away anytime soon… and they literally facilitate the financial markets we all depend on for wealth creation and management.
Can't feel sorry for overdraft fees as they represent exposure to the firm.
Yes, but something you have to consider is that they will do overdraft fees even if the funds are covered by a savings account or other account under the same person's profile..
I used to keep less in a checkings when I was in college but I'd always have like 1,000$ in my savings account. The overdraft system would AUTOMATICALLY draft from my savings, but not without charging me 20-30$ every single time..
If they can't afford the payment then decline the card, don't charge them another 30$ ontop of it for no reason. There is literally zero risk if they just decide to decline the charge.
@@Lolatyou332 Well... There's literally zero money to be made if they just decided to decline the charge. It's the banks. They make money out of no money.
Or they could just decline the payment that would overdraft. Then there would be no need for them to charge a fee. Oh, no, that would mean they would lose out on the money that you already don't have apparently.
@@Love2Cruise I just saw your reply after I hit enter on mine. We are saying the same thing. LOL. Exactly what I thought.
@@Lolatyou332if one manages their accounts correctly, there is no issue to resolve
I remember when I was in college, I would try to limit my money in checking and put it in the savings account (even though it was literally like .01% interest). I'd accidentally go over on a payment that AUTO DRAFTS from the savings account and then they'd decide to charge 20-30$ extra even if it was like 2 cents over-draft.
It's literally fees that target poor people. I closed my savings account since then and just leave basically full emergency fund in my checkings and the rest goes into my brokerage / Roth (ignoring the money that auto-deposits to my 401k.
As someone that manages their finances like an adult, it really upsets me to hear that my banking services might become more costly because other people can't handle their own issues.
Amen to that!!! Whatever happened to personal responsibility. SMH
Y'all need some compassion. Your services aren't more costly. The fees are are going to be lower. If your cost goes up, it might mean that your "free" services was being paid for by those who can least afford it.
@@austingonzalez1148nah. Online banks pay 100x the interest and no fees. Brick and mortars can fade away into obscurity.
Here’s another way to look at credit card late fees: Lets say a bank has to write off 5% of the credit card receivables due to non payment. Those receivables are written off after 6 months of non payment. All write offs start with a missed payment. So, it follows that late payment fees are compensation for collection efforts and the credit losses.
I want to know why overdraft fee and late fee can be called unexpected fees, if the customer is not responsible of his/her finances, these are the expected consequences😅😅
Overdraft / Late is YOUR FAULT , and not Junk
Just join a Credit Union instead of a banks. I've had a free checking account for DECADES.
Classic scenario where the government intervenes and the consumer gets screwed. Guaranteed they will get record profits once they adjust their fees to everyone instead of just those absuing their accounts.
It's not just billions of dollars in lost revenues, it's billions of dollars in lost profits. They're pissed they can't penny pinch the least fortunate through credit cards fees anymore so they're punishing them in a different way. This will basically unbank hundreds of thousands of people who can't afford these maintenance fees or who don't want to pay them because the service used to be free. A "Exploit them or drop them" mentality is what is making this happen.
Problem is the average person doesn’t stay in top of fees or don’t even see when they are charged till it’s too late. Almost no one will leave for a while till they realize.
Guess gotta start using cash only even if is a little bit more inconvenient
Savings accounts already have maintenance fees in almost all of the banks that I have been a part of. Any savings accounts with $100 or less (20 years ago) charged a quarterly fees if around 4% or $4. It was frustrating to the point that I had a savings account go negative STRICTLY because of the fees.
Junk fees have gotten out of hand. Almost as much as the requirement for tipping.
If there is only a $3 fee to OF checking accounts, what is the incentive to not overdraw? $8 for a credit card late? Lots of people would never pay $8 fee for another 29 days to make their payment.
The loss of capital in a high interest rate environment will make banking more expensive all around and fewer people will have access to credit cards if their score is less than perfect. Annuals fees on cards will increase. In short, this would not be good for the majority of consumers who stay on top of their finances
This will be a great opportunity for online banks
Too many checking accounts that are x100 better to be losing sleep over this change haha
What checking accounts?
@@nwj03afidelity Investments checking accounts is amazing.
7:47 - 8:10: these are my thoughts exactly. 😊
There will hopefully be a tipping point where customers leave the big banks and find reasonable alternatives.
People are stupid for using banks! CREDIT UNIONS ARE FOR THE PEOPLE!
Woooo. New hairdo! Someone is going somewhere fancy.
I don't concern myself with fees. I've never paid them nor do I intend on paying any of them. Banking relationship matters and will almost always eliminate all fees from my experience.
Fun fact, AT&T will charge you $30 to put the phone. You don’t want back on the shelf.
I stopped buying junk fees and left chase a decade ago. I used to get so annoyed.
Love your outtakes Erin!! 😁
Thank you!! 😁
It blows my mind that someone would use anything other than a good, reputable credit union for their main baking provider. Blows my mind.
Hair up is very cute👍
Regulation is what’s supposed to help us consumers (especially lower income Americans). Capping late fees is only the first step of regulating these big bank vultures. The CFPB can add more regulation to close loopholes the banks are trying to take advantage of to take away from the little guy.
WOW very surprised people don't want to pay regular fees to their banks for savings and checking accounts? Well and plus overdraft and other fees already existed before so what is the problem with fees? What is wrong with paying fees for checking, savings, and sometimes (Acorns) investment accounts?
They should just reduce or eliminate the interest rates for keeping money in checking and savings accounts. It is hardly anything to the customer, but it would be substantial when taking account of all customers. Most people don't bank with Chase for the interest so it might not hurt their client retention.
You're not mentioning that the percentage of the population that's unbanked will go up as a result of this.
Why would Banks risk their money providing checking & credit cards to people who are not incentivized to repay in a timely manner?
There are many ways banks make money off people with money, but fees are where they both profit & reduce risk servicing lower income clients.
*Fixed some grammar errors.
Credit Unions FTW!
How about just plain competition? Run a business based on price, quality and service.
#1 I've been there, I've been young and dumb. Got out of a relationship with $12k in CC debt. Worked my butt off to fix it. Slapped with fees for doing the wrong things. Embarrassed myself enough to not do it again. #2 Don't charge me a fee to make up for someone else's stupid mistakes.
The problem is, what if there were guardrails, so that you couldn't make those mistakes and receive the fees in the first place?
That's really what needs to happen, at least referring to overdraft fees.. Who cares about 'learning' the system if the system itself is designed so that people WILL fail and then the system benefits directly from it's people failing?
Valmac, Same here. Young and dumb. Got the t-shirt. Lesson learned. Decided I've had it with the banks and I would create enough margin in my life to not be their #1 customer.
@@Lolatyou332Would you be able to share an example of a guardrail?
Banks should not be charging any fees to begin with, the banks are not struggling. They’re already profiting off peoples money. It’s greed!
@@tjr4459 If you work for a for profit company, your paycheck and all your benefits come from the "greed fund" the company generates to keep you and hire more and innovate and contribute to charitable causes etc. Companies are always looking for ways to maximize profits, If you've ever had your own business or side hustle, you'd understand this principle.
It’s not surprising banks would pull the funds from other areas to meet their standard profit margins. Banks are for profit organizations.
Very true!
Wow... $3-8 fees?
I knew that regulations were going in place, but somehow assumed they would cap it at $20 and cap to once per day or week, and not for each and every little transaction.
Sorry... I am not used to you with your hair up and when I started the video I was like "wait... what?". Anyway, great content and I agree with these late charges. It sucks. I really like these new regulations.
If Chase does this. I am canceling all my accounts
Most banks in Canada already charge fees. We have very limited banks available for free accounts. Most of the free ones are digital, so if you need in person help, you can’t get it… it’s so frustrating to pay a bank to “store” your money. Ridiculous!
Most physical banks have 0 fee's if you have $4k-$5k in your bank account.
@@j-rb6363 that’s true, but a lot of people don’t have that kind of money lying around
I have many other bank and credit union options, if some of them don’t make sense anymore and charge bs fees to the chopping block they go.
This is why I only deposit with credit unions.
The way I see it... If people just do what they suppose to.. EVERYONE can avoid these junk fees.. I have bank accounts and have done whats right to where I am Not giving the bank any money in fees except my interest on my CC.. but even that is very marginal... IF the CFPB gets there way.. then More people will suffer with new junk Fees as like she said.. Banks are not going to do nothing to lose out on profits... This CAN AND WILL Effect Credit Unions regardless on the fact that they are not in for Profits... This will hit them to to be able to stay in business and pay their own mortgages, payroll, etc etc... I say Leave it alone!
ok, good by Chase, hello Fin tech
Here’s an idea - don’t be late.
You work for JPM
That's why you go with a bank like Walden Mutual. They and many others are no fees at all. We're in 2024, no banks should be charging fees.
There are so many banks that offer free checking accounts. People will switch if chase tries to charge them.
Lowering those fees would make no incentive for customers to pay their bills on time. Of course I'd be late if it only cost me $8. Why would anyone pay on time?
$22 in late fees is the only reason you pay your bills?
Good morning Erin. Informative video and discussion. This is not good news and it will be time to shop around for banking services if some of these possibilities begin to happen. The larger banks will have to compete with smaller local and small region banks for customers and their money, that should be what it's all about. The banks are happy to have and use all the money on deposit and pay virtually nothing to the account holders for the use of their money. Have a good week. Larry, Central Valley, Ca.
Loving the hairstyle, Erin.
Bankers give you an umbrella when it is sunny and take it away when it rains. Love the channel. I have finally started a channel and my bloopers are left in because I am new 😊😊😊😊
I'll check it out!!!
JP Morgan is delusional if they think I would accept losing money by allowing them to hold onto my money. Absolutely delusional.
If they are talking about these increased "regular" fees in an effort to forestall eliminating the more predatory fees, best believe they are already planning on increasing the "regular" fees whether the changes go through or not. They are just holding off, for now, to see if they can get the best of both worlds.
Eh bs, chase already has fees on checking and saving accounts many other accounts dont, so chase is just trying to scare people to be anti this bill.