Monday, February 8, 2016
Top Entrepreneur News

Sun, 07 Feb 2016 21:00:00 -0600

'The entrepreneurial spirit of defining, of iterating on a vision is what artists are fundamentally all about,' says Monegraph founder Kevin McCoy.

Sun, 07 Feb 2016 14:30:00 -0600

Alex Chambers began her UPS career working in her father's store, but now she's in charge.

Sat, 06 Feb 2016 21:00:00 -0600

It's all in the opening line, as this study shows.

Sat, 06 Feb 2016 19:00:00 -0600

Developing a daily routine is a key to athletic success and it can also help your business.

Sat, 06 Feb 2016 17:00:00 -0600

From industry leaders to startups to venture capital, here is where women are making an impact.

Fri, 05 Feb 2016 23:30:00 -0600

Don't let fear of missing out stampede you into an opportunity that isn't the right fit.

Fri, 05 Feb 2016 23:00:00 -0600

First off, be proactive. The best time to think about cash flow is before you have a need.

Fri, 05 Feb 2016 22:12:00 -0600

As speculation grows ahead of the chain's Super Bowl reveal, here are a few possibilities of what it might be.

Fri, 05 Feb 2016 22:00:00 -0600

With the cost per install consistently growing each year, app publishers must get creative with their marketing efforts.

Fri, 05 Feb 2016 21:48:00 -0600

The British serial entrepreneur is speaking live in L.A. about how startups can take the global market by storm with revolutionary ideas.

Fri, 05 Feb 2016 21:30:00 -0600

Following a successful tech career, Flint native David Tarver returned home with a zeal for solving social problems.

Fri, 05 Feb 2016 21:00:00 -0600

A startup will not survive without team members who are consistently learning.

Fri, 05 Feb 2016 20:45:00 -0600

Forget trying to pair something with chips and guacamole. Instead, put out a lot of what you like.

Fri, 05 Feb 2016 20:30:00 -0600

If you don't know how to make the best hiring decisions, you will not have the best company.

Fri, 05 Feb 2016 20:00:00 -0600

In sales, every minute saved is another opportunity gained.

Mon, 08 Feb 2016 07:21:00 -0600

Deepinder Goyal, founder and CEO of restaurant search and food delivery startup, Zomato (Image: Zomato) India’s largest restaurant search and food delivery startup, Zomato, announced early this week that it has broken even in several big markets, including India, and will hit profitability by mid-2016. When it does so, Zomato will be [...]

Mon, 08 Feb 2016 07:06:00 -0600

French insurance giant AXA announced today it is investing €75-million to take a 8% stake in Africa Internet Group (AIG), one of the continent's largest e-commerce operations. Jumia is AIG’s main subsidiary and operates in 11 African markets. Transactions grew 265% during the first nine months of 2015 to reach €206-million, [...]

Sun, 07 Feb 2016 18:35:00 -0600

What does our obsession with time-keeping at work say about us as leaders?

Sun, 07 Feb 2016 18:00:00 -0600

Marley Marijuana hits the market just in time to celebrate Bob Marley's birthday.

Sat, 06 Feb 2016 17:42:00 -0600

Plants are having their day in the sunshine, so to speak. Sebastiano Cossia Castigliani, a committed vegan and the owner of a biodynamic, organic winery in Italy, invests in the new crop of startups that are promoting plant-based foods. He hosted a recent gourmet vegan tasting dinner in New York to highlight the innovation taking place with plant-based cuisine.

Sat, 06 Feb 2016 15:43:00 -0600

It's rare that you see a company highlighting its own flaws when everything is going perfectly. Once you apply some pressure, you reveal the frayed edges, the blurred lines, and both the real and the perceived faults. Apple's Error 53 offers a crucial look at what drives Apple.

Fri, 05 Feb 2016 18:03:00 -0600

The Super Bowl 50 Halftime Show’s list of performers would make the promoters of any major music festival jealous: Coldplay, Beyoncé and likely Bruno Mars, for starters. Yet, just like Madonna, the Black-Eyed Peas and Katy Perry before them, none of the acts gracing the Super Bowl stage in Santa Clara this Sunday will be receiving a performance fee.

Thu, 04 Feb 2016 18:45:00 -0600

For most customers in the 21st Century their first introduction to a business is by discovering the business online. That’s why each and every business needs to have a strong online presence. Not only will this increase your brand’s reputation, it will establish you as an authority figure. Both of [...]

Thu, 04 Feb 2016 10:15:00 -0600

Sobering realities about stress caused by debt, and some solutions to help manage it

Wed, 03 Feb 2016 14:05:00 -0600

"Jock tax" rules will result in Cam Newton's California tax bill being twice as high as his Super Bowl earnings if the Panthers lose on Sunday.

Latest News & Information

Current Articles | Archives | Search

Is Your Bank Stealing From You?
By David Najor :: Friday, August 22, 2008 :: 18138 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!