Ask HN: Why are banks charging so many fees for accounts and cards?

Re:Ask HN: Why are banks charging so many fees for accounts ... by dackle on Saturday January 25, 2025 @03:55PM (#42824785)

Also, $16.95/month is $203.40/year, which divided by $4,000 is 5.09%. If you can earn more than 5.09% then you are better off paying the fee and investing your $4,000 elsewhere.

It is also pretty much impossible to keep precisely $4,000 in your account because of the lumpiness of day-to-day inflows (paycheques) and outflows (bills). If you keep say $10,000 in your chequing account to (a) avoid the $16.95/fee, and (b) provide a buffer against unexpected expenses, then the breakeven return on your money is $203.40 / $10,000 = a paltry 2.03%.

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Re:Ask HN: Why are banks charging so many fees for accounts ... by doubled112 on Saturday January 25, 2025 @04:02PM (#42824822)

Sure, you could pop it into a TD High Interest Savings Account and earn your high interest rate of 0.050%.

Wait, its 0.000% on $4,000

High interest, indeed!

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Re:Ask HN: Why are banks charging so many fees for accounts ... by dackle on Saturday January 25, 2025 @05:17PM (#42825462)

Yes, and while TD is paying you 0.050%, they are loaning out your $4,000 in the form of a mortgage on which they earn 6.79%!

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Re:Ask HN: Why are banks charging so many fees for accounts ... by scarface_74 on Saturday January 25, 2025 @07:21PM (#42826415)

There are plenty of reputable banks that still pay 3-5%. Amex savings accounts are now 3.8%

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