Canada’s big banks have been creating new types of fees and increasing the size of existing fees lately. But this all shows little imagination. The banks need to think more creatively about increasing profits.
It’s common for bank customers with chequing accounts to have to pay a fee of a dollar or so for each withdrawal beyond some maximum number of withdrawals each month. I think of it as getting dollared to death one little cut at a time.
What if the banks counted the deduction of the dollar service charge as a withdrawal as well? This would create another dollar service fee and another withdrawal. And then there would be another fee and withdrawal and so on. Depending on the speed of the banks’ computers, this could add up after a while.
Critics might say that this would lead to an infinite number of charges, but I’m sure bank representatives could explain that this isn’t true. The charges would stop once the account is drained or the overdraft protection is exhausted. Then the customer could show up at the bank with a loonie to end the chain of service charges.
Okay, that’s enough sarcasm. It should be obvious that I’m annoyed by all the new service charges. Most of my withdrawals require no human interaction. It’s hard to see why I should be charged anything close to a dollar for a few computers to do their work. That’s why I made the move to Tangerine.