Banks: It’s their profit, and your loss
I just read an article about the so-called service that banks provide today. In the seismic industry most of us get paid by wire transfer. How long does it take for the banks to credit your account? I live in Indonesia and the central bank there has the first chop at it, followed by my bank, and the process takes about a week.
As soon as you transfer funds from your account the bank stops paying interest. Interest is not paid on those funds again until they show up in the other account. What is happening to the interest in the meantime while your money is in limbo? As the article points out, there is a financial term for this. It’s called robbery.
Why should a transfer take so long? Even paying extra for the SWIFT transfer doesn’t seem to get the money there any faster. Why is it that we can pop into an ATM machine on the other side of the world and have money come out instantly while the wire transfer takes days to complete? Are the electrons in a wire transfer slower than those used in the ATM machine? Perhaps we need to have the particle physicists look into this phenomenon.
When you consider that only certain banks are authorized to make the wire transfers it does make it difficult to understand what is going on. There is almost zero possibility that the funds will not be honored. Did you ever try to stop a wire transfer?
Those of us who have been around since the ATM machine was rolled out can remember that the banks thought that this was a great idea as it saved them hiring more tellers and reduced their operating costs. Why is that they are now charging us to use those same money-savers?
In fact, with almost everybody now being paid bank to bank these ATM charges are a great little money spinner for the greedy banks. Especially in these days of miniscule interest rates. It is now costing us money to get our pay, and the bankers are laughing all the way to the bank.
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Link to Banks: It’s their profit, and your loss
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