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The financial world is buzzing over Chris Walker's Defencex "Ponzi" scheme, but are the banks any better, asks Fin24 user Ike Jakson.
The courts will decide (whether Defencex is above board) but I wonder what is really so different in what he (Chris Walker) proposed and what the banks have agreed between them to do to our precious little left-over balances after paying our bills for the month.
The banks have no more managers; the clerks and the computer must do the work. Their expenses are virtually nothing; remember also that they don’t handle any money of their own - it’s our money.
I have a cheque cum debit card account for my normal monthly activities, and a small savings account into which I receive small morsels on business I once did in the past before I retired.
When that builds up to R5 000 or just over it, I transfer a little into the cheque account because then I don’t need to draw on my investments for a while.
The bank pays me 40 or 50 cents interest a month if I maintain my savings account above R1 000, but then levy a fee of R 4.50 every time I transfer money to my cheque account.
On that account I have six, maybe seven transactions a month [I live modestly and have no debts] but they charge me a flat service fee of R41 per month and pay me no interest.
In toto, my two balances may vary between R3 000 minimum and often up to R12 000 during a normal month.
So what did Standard Bank decide to do the other day? Without informing me, they started debiting my savings account with a monthly R16 administration fee when I had R9 000 in there for a while; no explanation was given.
My point is that they must have at least one million accounts like mine on which they make R 57 [R41 plus the new levy of R16 on the savings account.]
Surely, that is where they get the money to put out on overdraft at a minimum of 15%. What is the end result?
On one million accounts like mine and the rest of the poor, they collect R57m a month in admin fees while they collect a further R150m in interest income at current levels on our money that they dish out in overdrafts or vehicle finance.
There should be a law that the banks must pay customers to have their accounts.
What do other Fin24 users think? Have your say - send us your feedback and you too could be published.
- Fin24
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
Fin24 reserves the right to obtain service providers' comments before publishing any articles or letters, and to edit any material used. Fin24 also reserves the right to edit or delete any and all user comments received
ikejakson@gmail.com
The courts will decide (whether Defencex is above board) but I wonder what is really so different in what he (Chris Walker) proposed and what the banks have agreed between them to do to our precious little left-over balances after paying our bills for the month.
The banks have no more managers; the clerks and the computer must do the work. Their expenses are virtually nothing; remember also that they don’t handle any money of their own - it’s our money.
I have a cheque cum debit card account for my normal monthly activities, and a small savings account into which I receive small morsels on business I once did in the past before I retired.
When that builds up to R5 000 or just over it, I transfer a little into the cheque account because then I don’t need to draw on my investments for a while.
The bank pays me 40 or 50 cents interest a month if I maintain my savings account above R1 000, but then levy a fee of R 4.50 every time I transfer money to my cheque account.
On that account I have six, maybe seven transactions a month [I live modestly and have no debts] but they charge me a flat service fee of R41 per month and pay me no interest.
In toto, my two balances may vary between R3 000 minimum and often up to R12 000 during a normal month.
So what did Standard Bank decide to do the other day? Without informing me, they started debiting my savings account with a monthly R16 administration fee when I had R9 000 in there for a while; no explanation was given.
My point is that they must have at least one million accounts like mine on which they make R 57 [R41 plus the new levy of R16 on the savings account.]
Surely, that is where they get the money to put out on overdraft at a minimum of 15%. What is the end result?
On one million accounts like mine and the rest of the poor, they collect R57m a month in admin fees while they collect a further R150m in interest income at current levels on our money that they dish out in overdrafts or vehicle finance.
There should be a law that the banks must pay customers to have their accounts.
What do other Fin24 users think? Have your say - send us your feedback and you too could be published.
- Fin24
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
Fin24 reserves the right to obtain service providers' comments before publishing any articles or letters, and to edit any material used. Fin24 also reserves the right to edit or delete any and all user comments received
ikejakson@gmail.com
