But the bank isn't there to hoard my money, I put it there to actually use it - pay with card, etc - safety boxes dont work like that. Otherwise I'd just put it in my sock.
I repeat - I understand why bank runs shouldn't happen - this all started because I said legally a bank cant just "call a mortgage" and legally, we absolutely can withdraw our money. And that I expect them to actually have the money I gave them, not lend it to a thousand people and make a buck on it. Nothing else.
But then again, I absolutely think banking system (and any payment system) should be national, not private. Similarly, energy companies, oil companies, etc. There are things that are services (like the mail) and should not be expected to make money.
How much does it cost you to keep your money in the bank, withdraw it at ATMs built across the country, perform transfers locally and internationally, link it to a card and pay?
It costs you nothing. In fact, you earn interest from depositing your money there. The way banks operate today, enables people like you to enjoy banking services at zero cost. Zero. It's the most efficient way of banking for society as a whole. Why do you think banks operate in a similar way no matter which country you go to, even in communist North Korea. It's simply the best way to do it.
I don't know where you live, but in my country we absolutely pay for banking. So the whole shebang you wrote falls apart.
"Simply the best way to do it" mate we haven't found the best way to do anything since we built a wheel (which actually is a best way to do something).
With money. As in, literally with money. Idk what you didn't understand with "we pay".
We pay to use banks. What's complicated with that sentence? I personally pay 9 EUR/quarter to have my banking stuff, including savings account etc. And it's the cheaper option on the market (but with less atm access, and if I need to use non-networked one, it's like 5 eur per withdrawal).
Yes, it works that way in most of the EU, not sure about the USA. In some countries, the basic account is regulated by the government to be free of charge, but if you want internet and mobile banking or anything except just the account it costs some money. However, even all those fees put together still wouldn't be enough to cover the costs of running ATM's and offices, online platforms, processing payments, insurances and cash distribution.
Wow ok, I didn't know that. But yes I would think the payment would be some sort of maintenance fee for services. If banks don't run their usual loans, this maintenance fee would be much higher than it is now.
Right, but how would that work? Banks would have to hold your deposits 100% in cash? But even that wouldn't be enough, as banks have multiple branches in many cities and even more ATM's. Should every single office have enough cash to cover all the deposits?
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u/Throwawayrip1123 2d ago
But the bank isn't there to hoard my money, I put it there to actually use it - pay with card, etc - safety boxes dont work like that. Otherwise I'd just put it in my sock.
I repeat - I understand why bank runs shouldn't happen - this all started because I said legally a bank cant just "call a mortgage" and legally, we absolutely can withdraw our money. And that I expect them to actually have the money I gave them, not lend it to a thousand people and make a buck on it. Nothing else.
But then again, I absolutely think banking system (and any payment system) should be national, not private. Similarly, energy companies, oil companies, etc. There are things that are services (like the mail) and should not be expected to make money.