The business of banking has changed dramatically over
last decade. Because cost of doing business old-fashioned way is no longer effective, banks are interested in changing their customers’ behavior by encouraging electronic banking alternatives whenever possible. They have done this by charging high fees for services that were once free. If you pay $200 or more in annual fees for banking, it’s time to do some competitive shopping. Before becoming furious with your bank, it may be that products you’re using no longer meet your personal needs. If you have an established relationship with your bank, inquire about other types of lower-cost checking and savings account products.
By understanding rationale of why a bank charges fees for different services will allow you to be a savvy banking customer. If human contact is required to serve you, such as a teller or personal banker, this is very expensive for bank. The incentive is for banks to encourage more high-tech, “low-touch” methods of meeting your needs. This is accomplished by servicing as many customers as possible with automated telephone services, cash machines, and online self-service banking.
Since bank needs to train their employees, provide a paycheck and benefits, pay for branch building, in some cases supply uniforms etc., it is conceivable that your one banking transaction per pay period could cost bank $3 or more for your one banking transaction.
If you conduct your banking via an automated telephone system, cost of this type of transaction is much less expensive. However, if you then require assistance from a telephone banker, price goes from $1 for automated process to as much as $2 for human contact. For same reasons stated above, training, location, computer equipment, etc. become more expensive when human interaction is needed.
