Sunday, September 25, 2016
Top Entrepreneur News

Sat, 24 Sep 2016 17:00:00 -0500

Networking can be defined as the building, maintaining and developing of relationships.

Sat, 24 Sep 2016 14:00:00 -0500

Take your work anywhere you go. Just be ready for the bumps in the road.

Sat, 24 Sep 2016 11:00:00 -0500

Steer clear of negative co-workers -- they'll only bring you down.

Fri, 23 Sep 2016 19:00:00 -0500

Investigate how you can create value for your customer and yourself without resorting to slashing prices.

Fri, 23 Sep 2016 18:38:37 -0500

A recent study published in the journal 'Psychopharmacology' says that suds bring happier human interactions. We'll drink to that!

Fri, 23 Sep 2016 18:00:00 -0500

Remain private as a business, and scale that way. The outcome will be a good one.

Fri, 23 Sep 2016 17:50:00 -0500

Download these apps to help you save money while staying fashion forward.

Fri, 23 Sep 2016 17:45:00 -0500

Participation helps establish reputations and uncover opportunities for partnership

Fri, 23 Sep 2016 17:23:00 -0500

These concerns come before covering health expenses and college tuition, according to a survey by online parenting community Fatherly.

Fri, 23 Sep 2016 17:00:00 -0500

Double-entry accounting was invented at least a 1,000 years ago. Big changes are long overdue.

Fri, 23 Sep 2016 16:30:00 -0500

U.S. companies operating abroad pay less U.S. tax when they pay foreign taxes as well. What's wrong with this picture?

Fri, 23 Sep 2016 16:20:00 -0500

A groundbreaking new documentary reveals the unsexy and uncertain path to launch a business. With young Americans starting companies at multi-decade lows, it's a call to action we can't ignore.

Fri, 23 Sep 2016 16:00:00 -0500

Travel can spark unexpected businesses, and Andrea Lee started hers after a pleasant trip to… North Korea?

Fri, 23 Sep 2016 16:00:00 -0500

Creating a brand is only the first step. Learn how to get your entire company on board so customers see your brand at work in every aspect of your business.

Fri, 23 Sep 2016 15:32:00 -0500

The error has been fixed and did not impact billing, the social network said.

Sun, 25 Sep 2016 10:10:00 -0500

HP Chromebook 13. (Credit: Hewlett-Packard.) I've been using a spanking-new 2016 Chromebook full time for more than a month now. Here's a brief guide that covers the good, bad, and indifferent. Short answer: yes, it can replace your Windows 10 laptop or MacBook. (I use bothWindows laptops and MacBooks). Longer answer: read [...]

Sun, 25 Sep 2016 00:40:00 -0500

Becca's promotion is going to be announced next week. Not everyone will be happy to hear the news. How can Becca deal with the wave of anger and disappointment she knows will come her way once her promotion is announced?

Sat, 24 Sep 2016 23:50:00 -0500

Roberto hates his job so much he can barely drag himself to work -- but what if there are advantages to having a job you can't stand?

Sat, 24 Sep 2016 20:04:00 -0500

iPhone 7 (Apple) Buyerbeware: the iPhone 7 is probably the most unspectacular full upgrade yet. "Full" being the operative word. Consumersshouldkeep that in mind as Apple preps for a major makeover of the iPhone in 2017 (what I would call the real iPhone 7). When I did some initial hands-on with the iPhone [...]

Sat, 24 Sep 2016 15:23:00 -0500

Pokémon GO still hasn't implemented a new Nearby tracking system yet, despite testing one for a month, but with the inclusion of the Buddy System, it may not matter as much as it once did.

Sat, 24 Sep 2016 14:00:00 -0500

Although exceptions exist, these 17 are among the most deadly mistakes that killed deals. Most of the time they could have been fixed before ever dipping a toe into the tank.

Fri, 23 Sep 2016 23:07:00 -0500

Ron is sure the job ad he saw is an ad for his own job -- what should he do now?

Fri, 23 Sep 2016 15:00:00 -0500

Ever heard of “brochureware?" It’s an old internet marketing term used to describe a website that is basically static – a site with no interactivity. Brochureware hit its peak of usage around 2005 and has pretty much fallen off the map. The idea behind it is having a resurgence, especially in [...]

Fri, 23 Sep 2016 13:46:00 -0500

'I am a big believer in taking risks.'

Thu, 22 Sep 2016 10:00:00 -0500

Writer and thinker Scott Santens simplifies the argument for a universal basic income in this Q&A.

Latest News & Information

Current Articles | Archives | Search

Is Your Bank Stealing From You?
By David Najor :: Friday, August 22, 2008 :: 20452 Views :: Article Rating :: Business & Finance

California, USA - “Few would argue that the energetic entrepreneurs have transformed small business in metropolitan areas of Michigan, California, Illinois, Arizona, and Nevada,” says Rebecca Cohen of California’s Bank & Trust speaking of Chaldeans.  “They are hard-working, brilliant in business, and have a remarkable talent for negotiations.”

Although the accolades and praise rings true to many, Chaldean business owners still remind budding entrepreneurs to be mindful of banks when doing business. 

“Banks are like any other business.  Their inventory is currency.  They want to buy currency when it is inexpensive and sell or loan to you at a higher rate,” says Masood Bajou.  “Chaldeans in business or not, should always keep a close eye on their banks and the fees they charge.”

Increasingly, banks are finding ways to impose bigger and trickier fees on account holders.  Uncovering the creative ways banks assess fees and other hidden costs to their customers was no easy task.  Nonetheless, Chaldeans should be watchful over some of the sneakiest fees and quickly master ways you can avoid them...

ATM Overdraw
Many ATMs are allowing their customers to overdraw on their accounts. Request cash from your bank's ATM, and you will almost certainly receive it -- even if there is not enough money in your account to cover the withdrawal. Banks could easily program their ATMs to decline such transactions or to warn you that such a transaction will trigger a hefty overdraft fee, but that would mean a loss of extra fees for the banks.

Chaldean Self-defense: Check your balance before making the withdrawal if you are not certain there is enough money in your account.

Double ATM fees.
Last year, Bank of America increased its ATM fee for non-account holders from $2 to $3, and other banks are likely to follow suit. ATMs warn customers of this type of charge, but many ATM users do not realize that their own banks often charge an additional fee of between $1 and $2.50 for using an ATM that belongs to another bank chain. That means the total fee for an out-of-network ATM transaction can top $5.

Chaldean Self-defense: Use only your own bank's ATMs.

Check Overdraft Penalities
Clear the biggest checks first to maximize overdraft penalties. Most banks charge a fee of $30 to $40 each time an account holder bounces a check. (Any merchant who received your bad check might charge you a penalty as well.) In addition, many banks now follow a practice that often automatically increases the number of checks that their customers bounce. They do this by first deducting from your account the largest check amounts when processing a batch of your checks.

The banks claim they do this because large checks tend to be the most important, but consumer advocates contend that it is just a way to maximize fees. Bank of America, Citibank, HSBC, Wells Fargo and many other banks engage in the practice.

Example: Five checks you wrote reach your bank on a given day -- four checks for small items followed by a $1,400 mortgage payment. If there is only $1,300 in your account, only the final check -- the big mortgage payment -- should bounce. Instead, your bank processes the large mortgage payment first, which means that all five checks will bounce. Rather than a $30 or $40 overdraft fee and one upset check recipient, you now face $150 to $200 in overdraft fees and five perturbed check recipients.

Chaldean Self-defense: Avoid writing many checks or making several debit card purchases in a short period if you are not 100% certain that there will be enough money in your account to cover all of them.   Also, check with your bank to see if they have overdraft protection should you have both a savings and checking account. This is often a free service so be careful of banks that charge for this basic service.

Another hidden fee is getting a penalty for someone else's bounced check. A penalty when you bounce a check is one thing -- but many banks now charge a fee of $5 to $10 to the recipient of a bad check as well.

Chaldean Self-defense: Do not accept checks as payment unless you are confident that you can trust the payer.

Account Dormancy Fees
Some banks charge a fee of several dollars per month to keep an "inactive" or "dormant" account open. In Michigan, Charter One is notorious for this practice.  Banks have different criteria for what they consider a dormant account, so be sure to ask your bank about its rules.

Chaldean Self-defense: Close any unnecessary accounts.

Banks might charge you a fee of $5 or more if you close an account within six to 12 months of opening it. These fees are particularly common at bank branches located in college towns, because banks know that students often close accounts at the end of each semester or school year. Example: Here in California, KeyBank charges an early closure fee of $25 when "Express Checking" accounts are closed within 180 days of being opened.

Chaldean Self-defense: Ask about account closing fees before you open the account. Don't open an account at a bank that charges such a fee if you expect to leave the region or close the account for another reason anytime soon.

Gift Card Fees.
Banks sell gift cards like those offered by retailers. They can be used just as you would use a bank-issued debit or credit card. Unlike retailer gift cards, however, bank gift cards often carry account fees of as much as $2 or $3 per month. If the recipient does not spend the money quickly, a significant portion of it might gradually disappear.

Chaldean Self-defense: Give cash or a check -- or a retailer gift card -- rather than a bank gift card.

Teller and Phone Fees.
Some banks now charge $1 to $5 or more every time an account holder interacts with a teller or customer service representative in person or on the phone (or every time the account holder exceeds a preset monthly teller transaction limit). At some banks, this charge applies even when customers call the bank but interact only with the automated system. Customers are not told that they are being charged a fee at the time of the transaction, and they often are unaware of the rules.

Some banks even charge a fee for certain ATM services, such as requesting a "mini-statement" that summarizes recent transactions.

Chaldean Self-defense: Ask your bank if your account has a limit on the number of free teller visits or calls. If it does, do as much banking as possible through ATMs or on-line.

Also, ask to have any teller or phone fee waived when your call or visit is about a bank error, involves opening an account or is because the bank's ATM is out of service. You also may avoid these fees if you maintain a certain balance in some accounts.

PIN fees.
Some banks now charge a fee of 25 cents to $1.50 each time a customer uses a personal identification number (PIN) for a debit card transaction at a retailer. Debit card users typically can choose to either sign for purchases or type in their PINs.

Banks impose PIN fees to encourage customers to sign for purchases, because banks can charge retailers higher fees when they do. Trouble is, many Chaldean cardholders don't even know that PIN fees exist.

Chaldean Self-defense: Try to use credit cards rather than a debit card. If you do use a debit card, check whether your bank imposes a fee when you enter a PIN. Consider switching banks if it does.

HOW TO AVOID FEES

Many Chaldean bank customers learn that fees only after when charges appear on their account statements -- if they bother to read their statements at all.   By law banks are required to give new customers a "Truth in Savings Disclosure" statement detailing all of their fees and to notify customers in writing when policies change, but few read the fine print of bank literature. Chaldeans should routinely ask their bank for a copy of the fee-disclosure statement for their accounts.

Chaldeans will often say that their banks waive the fees because they are good customers, but this is less common now. At many banks, low-level employees no longer even have the right to waive fees, and the managers who do are increasingly unwilling to be lenient -- though it is still worth asking to have questionable fees waived when they appear on your statement.

Always keep a good record of what you have tied to a bank.  Banks know that if you have your mortgage being automatically withdrawn, direct deposit for professionals, or a business account with business dealings electronically tied, they know you are less likely to leave over the fee charges.  Some banks will take advantage of this situation and nickel and dime Chaldeans to death. 

Having all your information accessible makes it easy to call their bluff and transfer your accounts to another bank.  Competition is the only way to keep the banks offering great service at reasonable costs. 

Now that is advice you can take to the bank!