Beginning in December Citigroup will start charging customers with a basic checking account $10 a month. Unless of course you make one direct deposit and one online bill payment per month.
Lets examine the state of affairs in this country and see how this all works out. We have an unemployment rate that increases daily. We have employers afraid to hire because of the uncertainty in the economy. Job seekers can’t find jobs. The foreclosure rate just went up, again. And of course banks aren’t lending because they’re unsure if the borrower(s) can repay the loan. So, Citigroup’s answer is to take $10 a month from the people that keep them in business? That’s just curious to me.
Now if they have some great idea to take that $10 a month they are pilfering from their customers and use it to help people find jobs, help people keep from getting foreclosed on, and give back to community and the local economy, they by all means take the 10 bucks.
In reality though, they need to pad their bottom line so large investors will pour more money into them so their execs can afford to fuel up their jet/yacht/Ferrari.
And it’s not just Citigroup, Bank of America and many other mega-banks are going to start charging these fees.
Here’s how I see this playing out. These big banks are going to start losing customers to smaller thrift banks that take care of their customers on a human level. Just like in the “olden” days when you knew the person you gave your money to by their first name and not their URL. You have almost 10% of the employable population without a job that have their money in these banks that may not have the means to pay their electricity bill, send their kids to school, and are basically hanging on by a string. Lets just look at what this $10 takes away from people:
- $10 = 4 gallons of milk per month or 48 gallons per year
- $10 = 2.85 gallons of gas per month or 34 gallons per year
- Thats like telling people, “drive 7 miles less every month so you keep your money in our bank”
- $10 = 8-10 loaves of bread per month.
$10 is a lot of money, not matter how you slice it. So thank you Citigroup for taking food from the mouths of your customers and making it harder for them to even afford to go to work ever day.
And, no I don’t bank with Citigroup. Please share this with your friends and family and tell them to take their money somewhere else. I’m sure there’s a local bank in their neighborhood that will be more than happy to work with them.
Here’s a link to the story from today’s Chicago Tribune: Click Here