Things seems to have gotten out of hand when banks are raking in $50 billion a year just from service charges, MSN reports. Consider how banks maximize over-draft charges:
In recent years, changes in federal laws have all but eliminated “float” — the time it takes for a check to clear from the writer’s bank account. What used to take days now often takes hours or less. What hasn’t been speeded up is the time it takes for deposits to clear and be available for your withdrawal.
In other words, your money goes out faster than ever, but comes in as slow as ever. Which leads to… overdrawn checks. Which leads to… nice, juicy bank fees.
Fee-generating tools at banks’ disposal include charging for “potential” overdrafts, offering “courtesy overdraft” protection, and charges for using personal-finance software.
Read the whole piece how they’re working to turn your money into their money, and what you can do to fight back.
Maybe grandma wasn’t crazy to stuff it all in the mattress… — FREE MONEY FINANCE