Consumer Banking…?

I read a good article about banking and the ways their sales material tries to fool the consumer into believing the bank is working for them. It’s an interesting read. Here’s the link.

10 Things Your Bank Won’t Tell You
by Jim Rendon
Monday, August 18, 2008provided bySmartMoney.com

Great article pointing out the reality of the banking industry. One thing he missed is the technical aspect that banks have lobbied Congress into allowing them to decrease the time for clearing collection transactions, yet left the hold time for deposits as it’s been for over 60 years. This means banks can hold your money for up to 10 days on a deposit, yet ensure they take it from you immediately. There are huge profits made on this float, and it’s a legal loophole that they want to ensure does not close. The fact is that the transactions clear in the same time frame with little difference as to the timing. Banking for the consumer is a farce and another example of corporations focusing on profit and not the consumer…

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