Wednesday, September 2, 2015
Top Entrepreneur News

Wed, 02 Sep 2015 22:30:00 -0500

Being an agile leader refers to remaining flexible, growing from your own mistakes and rising above the wide array of challenges you face.

Wed, 02 Sep 2015 22:00:00 -0500

Practice accounts and free resources are your BFFs when you're just starting out.

Wed, 02 Sep 2015 21:30:00 -0500

Buying is a particularly attractive option, because a lot of the legwork is already done for you.

Wed, 02 Sep 2015 21:00:00 -0500

Your idea may look great on paper, but boy oh boy do things change -- and they will.

Wed, 02 Sep 2015 20:30:00 -0500

No, you can't do it all alone. No, your startup isn't a business. No, your launch date isn't a certainty.

Wed, 02 Sep 2015 20:00:00 -0500

With so many people talking in your ear when launching a new venture, there's bound to be some bad advice. Ignore them for your own good.

Wed, 02 Sep 2015 19:47:00 -0500

Ruth Krishna's Tandoori Steakhouse has been renamed Randy Krishna's for David Chang's satiric one-night pop-up restaurant event.

Wed, 02 Sep 2015 19:30:00 -0500

You'll want to surround yourself with extraordinary people. Here are some ways to maximize your success.

Wed, 02 Sep 2015 19:27:00 -0500

Is your company, like Facebook, acting to motivate employees both intrinsically and extrinsically?

Wed, 02 Sep 2015 19:00:00 -0500

A great approach to online marketing is more of a bargain than you think.

Wed, 02 Sep 2015 18:30:00 -0500

A lack of experience doesn't mean you can't show potential customers the strength of your qualities.

Wed, 02 Sep 2015 18:13:00 -0500

#TeamInternet is not amused.

Wed, 02 Sep 2015 18:00:00 -0500

Virtual teams remain a productivity nightmare for many companies, but having the right people and leaders in place can make it a dream.

Wed, 02 Sep 2015 17:30:00 -0500

These tips make a case for sounding more casual in your copy.

Wed, 02 Sep 2015 17:15:00 -0500

Here are five, five-minute exercises to help create awareness and take control of the moments that can define businesses and careers.

Wed, 02 Sep 2015 18:49:00 -0500

Leo applied for a job he wasn't qualified for, based on the job ad -- and he got the job anyway! How did he do it? Find out!

Wed, 02 Sep 2015 17:09:00 -0500

Good managers are strong leaders. They tell the truth. Lousy managers are weak! Here are five things only weak, fearful managers say. Do they sound familiar?

Wed, 02 Sep 2015 16:59:00 -0500

Pity the poor console player: he or she rarely has anybody defend them. Spend some time on the Internet, and you'll run into a whole lot of people talking about how much better PCs are than consoles --  to the point where it seems less like a superiority complex and [...]

Wed, 02 Sep 2015 16:44:00 -0500

'Metal Gear Solid V: The Phantom Pain' is a solid game, but a few problems snake their way into the mix.

Wed, 02 Sep 2015 15:48:00 -0500

Today is the last of Bungie’s three reveal streams for Destiny's The Taken King. The first focused on Quality of Life changes to the game, and the second ran us through one of the expansion’s new Strikes. Today, we’re exploring the new playable area of the game, the Dreadnaught, nestled [...]

Wed, 02 Sep 2015 13:55:00 -0500

Sometime in the next several weeks, the U.S. Air Force will award a contract for the first long-range bomber America has developed since the Cold War ended a quarter-century ago.  The service plans to buy 80-100 bombers at a production cost of $550 million in 2010 dollars, with initial operational [...]

Wed, 02 Sep 2015 12:33:00 -0500

There are some things you simply never want to say at work. These phrases carry special power: they have an uncanny ability to make you look bad even when the words are true. Worst of all, there’s no taking them back once they slip out. I’m not talking about shocking slips of the [...]

Wed, 02 Sep 2015 11:31:00 -0500

Microsoft takes a big step forward, with one major caveat...

Wed, 02 Sep 2015 03:24:00 -0500

Why should employers care about obesity…as long as revenues are “fat” and costs are “lean”? If you view obesity as a completely separate issue from your business, you do so at your peril.

Tue, 01 Sep 2015 06:35:00 -0500

No matter what field you work in, if you’re hoping to get ahead in your career, you need to be mindful of technology trends. We’ve seen it all too often in recent history, that a new technology takes over and suddenly those who can’t keep up are no longer needed. But [...]

Thu, 27 Aug 2015 13:24:00 -0500

A couple saved $40,000 so they could quit their jobs to travel the world for a year -- and now they're back and making more money than ever before.

Latest News & Information

Current Articles | Archives | Search

Is Your Bank Stealing From You?
By David Najor :: Friday, August 22, 2008 :: 16469 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!