Royal Bank of Wankers

[Capetonian]

SB changed every ones CC statement date in January! To the 1st of the month.

That rumour which I've heard from several sources, including the bank itself, is not correct as you can see from my last statement dated 14JUN and showing (no) payment due on 09JUL. A couple of friends had their dates changed, others didn't.

[OFSO]

Mine can't be an interest payment as a/c had nothing in it on 31st December. Bunch of clowns.

[ian16th]

Cape,
My statement date definitely changed, NOT at my instigation.

When I queried it in my branch, I was informed, by one of the 'financial advisers', that everyones had been changed.

I was more concerned with optimising/minimising the new transaction charges.

[ExSp33db1rd]

Passed a fast-food type establishment yesterday here in California showing a notice in the window stating "cash not accepted, cards only ". I went in and showed them the statement on a dollar bill, " .... legal tender for all debts etc... ." ( or words to that effect ). They were not interested so I explained that I had a choice - the place just up the street, and walked out. They were still not interested.

[llondel]

Some places find it costs them more to process cash through the bank, plus they might be prone to having someone come in and demand it's handed over, whereas if they're completely cashless then there's nothing to lose.

[ExSp33db1rd]

whereas if they're completely cashless then there's nothing to lose.

Except my custom ! ( and maybe others ? )

[jimtherev]

As I understand it,(and I've heard people wot knows about finance say,) with interest rates the way they are, it actually costs the bank to handle our money... if you have as small an income as I have, anyway.
Mind you, that does beg the question: what do banks actually do to make money these days? Is this why they call all these scams they offer as soon as you walk into their doors "Products"? ('cos they produce money for the banks)

[Undried Plum]

The don't 'make' money by taking deposits. They literally make money by making loans.

When a bank issues a loan they create that money out of thin air. That money then belongs to them, as does all the interest and any associated fees.

It's called the Fractional Reserve banking system and it stinks.

[Capetonian]

If a bank takes deposits at 0.1% and lends that money out at 5% it's simply a commercial proposition and no different to a retailer who buys for 'x' and sells for 'x+33%', although the margins may be different.

A lot of businesses wouldn't exist, and a lot of people would be homeless, if it weren't for the availability of credit in its different forms.

I should probably add that I am disgusted by how easy it is to obtain credit, particularly those lenders who offer credit at high interest rates to people who are a poor credit risk and who are the last who should be offered credit as they will generally abuse it, and end up not paying their debts, whilst people such as myself who always have cash in the bank end up suffering with low interest rates on their balances.

I pay my various credit cards in full on the due date, but I always note that the 'minimum payment' is usually 3% of the outstanding balance. People who pay that minimum then pay interest of up to 40% pa on the outstanding balance, and that balance often does not reduce as they carry on using the cards for further purchases.

What is even more devious is how the banks hide the reality of these charges in the micro-print. For example, if you owe £3000 and you pay £2900, you might think you would pay interest on the outstanding £100. In fact, you would pay interest on the entire £3000 as the balance has to be settled in full to qualify for the 'interest free' period.

A friend of mine who is intelligent but not very money-wise recently got himself into CC debt because he thought that by paying the 'minimum amount' each month he would not be charged interest. He was paying off £35/month but as the interest was about £25/month, the capital amount was only reducing by £10/month, not the £35 he thought.

[Undried Plum]

If a bank takes deposits at 0.1% and lends that money out at 5% it's simply a commercial proposition and no different to a retailer who buys for 'x' and sells for 'x+33%', although the margins may be different.

The "margins" are very different!

When a bank makes a loan it owns all of that money, plus interest, plus fees. When a retailer sells you a widget, you own the widget. When a bank sells you a loan, they own that money which they have conjured out of nothing simply by writing the loan, not you.

The bank does not own that money before it writes the loan. That money does not even exist before the loan creates it.

Most people think that a bank takes in deposits and then loans that money to other customers. That's not at all how it really works.

[Capetonian]

UP: I didn't see your post until after I'd amended mine above.

I accept what you say but the bank has to be in a position to repay depositors on demand or at least in accordance with the terms of the deposit, so they are running some (minimal) risk exposure albeit that to them the upside is a huge differential between what they pay depositors and what they charge borrowers.

It's rather like the Forex thieves (Moneyscam etc) who will sell you €100 for £96 and when you want to sell back the €100 they will give you £80 for it. A friend recently found a 100 Omani Rial note (value about £200). I took it to a Moneyscam or similar bureau at LGW and they offered me £90 for it.

[Rwy in Sight]

Lots of countries, including France, have tax authorities very suspicious of cash transactions. I can see it being on the way out. Except in Greece !

There is a limit at 500 € to be paid in cash. Anything above it, must be paid in either by bank transfer or plastic.

[G-CPTN]

In 1988 I paid the whole price for a new car in cash - the salesman was somewhat surprised.
There was no fiddle, it just avoided waiting for a cheque to clear or getting a bankers draft (whatever that was).

[ian16th]

When I wrote out a cheque for my current car, the salesman didn't know how the dealership handled one.

Every other customer he had dealt with had required 'finance'.

[llondel]

In the past, I have gone into one bank, withdrawn a decent chunk of money, walked over to another bank and deposited it there. That way it wouldn't get "lost" in the system for three days if I'd just asked the first bank to transfer it to the second, although now I think they do usually manage do achieve transfers on the same day. Sometimes cash is the only way you know you're getting paid, although it does carry some element of risk if someone attempts to relieve you of it before you've put it in a safe place.

[ian16th]

I think they do usually manage do achieve transfers on the same day.

It all depends on if the bank wants to be quick.

I have transferred cash from a Barclays Sterling account in Jersey, to a SA Rand account in Standard Bank of SA inside a working day.

Standard Bank always take 24 hours to move money from my Cheque account to my Credit Card Account. To avoid interest charges, I always make the move 48 hours before the due date.

[Undried Plum]

Banksters are no longer obliged to repay what they borrow if it does not suit them.

You may think that you own the money which you deposit, but you are wrong. They do.

Those rules are there to protect the bank in the event of a 'run'. Their own rules allow them to defer repayment until a time that suits them, not you.

They write the rules. You don't.

[ian16th]

You may think that you own the money which you deposit, but you are wrong. They do.

Quite true.

Any monies deposited with a bank are on their books as an asset.

[barkingmad]

Yanis Varoufakis has published a very good book on money for people like me who can't get their heads around international banking and funny money.

"Talking to My Daughter-A Brief History of Capitalism" explains in easily read and understood language about how the banks play the game with non-existent money.

Strongly recommend it.

[Rwy in Sight]

Given that his games with troika led to bank closure in Greece and him being proud of it, I would put more trust on the News of the World than him.