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During the Super Bowl last night, E-Trade ran a commercial depicting a bank robbery.
The robbers had masks, bags (no dollar signs though) and all the standard jargon ("Lady, don't be a hero.").
Except that the robbers weren't who you would expect. It was the tellers, manager and even the security guard.
Brick and mortar banks are robbing you.
They're giving you horrible rates of return in their savings account — no where near what an online savings account can offer.
They're charging you to have an account, even though they're using your money to make them more money.
They're charging you more and more fees for things that should (and used to) be free.
They're requiring you to have a minimum balance to keep your account open.
So why do nearly all of us still use them?
(View the commercial here. Click 3rd Quarter and then E-Trade).
I agree. Most people should take their money out of conventional banks right away.
One of the problems is, of course, brand loyalty. "I bank with Chase," "My account is with WaMu," etc. Some consumers have their savings accounts, mortgages, credit cards, and everything else with their brand name bank, regardless of the better deals all over the country and online.
Another reason could just be convenience. Most people use a bank close to where they live, and find it more convenient to leave everything in that bank. They feel "safer" being able to go to the local bank and pull out some money or talk to someone in person, if need be. Ironically, though, many people just pay for everything through their cards that it really doesn't matter where they bank.
They should be looking for the best deals, which usually aren't found in their local brick and mortar banks. Good observations here.
Regards.
Carnival of Personal Finance #87 in Rio…
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