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Email this5:12 pm
March 30, 2017
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lifeonanisland said
There are many bank apologists on this forum, and while they are quick to defend the bank's actions (or lack of), their posts and knowledge are appreciated in that they do explain the reasons that underlie these actions and, more importantly, serve as a simple reminder: the banks, and other FIs, are not your friends. Best to use them as they use you.
Yeah it will be naive for someone to think banks / financial advisors / full time brokers are their friends. Yes there are still people out there who uses full service brokers and believe the broker acts in their interest up and fore front....
Even more so to say since banks will raise their prime rates in lock step with BoC, why arent they doing it for the HISA and GIC as well 🙂
5:55 pm
September 11, 2013
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Every arm's length transaction not done under duress is done for the benefit of each side, every single one, otherwise they don't happen. Not sure about friends, but my big bank shares have had a special place in my heart for a long time! (Tip: If you see something raking in egregious amounts of money become a part owner, i.e. buy shares, if you can.)
7:15 pm
December 12, 2021
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JPMorgan Chase CEO Jamie Dimon, said that a “hurricane is right out there, down the road, coming our way.”
After 15-year period of low interest rates and cheap corporate debt and borrowing money and buying assets. Buyback stock. "Game Over"
Inflation and recession won’t be resolved overnight. The new cycle will bring a world with real interest rates.
Some people still thinking that interest rate will go back to 0.25% in few months. "Game Over"
The inflation is out of control full stop
7:29 pm
April 14, 2021
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Just imagine what could bring the world's economies back to a halt:
- WW3 - Russia goes wild or PRC goes for Taiwan
- new epidemic - CoVid/Ebola mutates into something more lethal and transmissible
- name your own scenario
any government desperate enough to keep things moving might very well be ready to face spiral inflation in lieu of absolute collapse. Both situations would be bad, but one would be worse.
5:05 am
April 27, 2017
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lifeonanisland said
There are many bank apologists on this forum… serve as a simple reminder: the banks, and other FIs, are not your friends. Best to use them as they use you.
I have never come across anyone who called banks “friends” so not sure why the denial of this suggestion is even needed.
Also a little confused as to how my usage of the banks should change to reflect the “non-friend” status. Does it mean thar I can no longer invite banks for BBQs at my place?
Sorry for being a bit literal but I am genuinely trying to figure out what the “use them as they use you” means. Should I be offering financial services to RBC and try to make a profit to satisfy my shareholders?
6:15 am
March 30, 2017
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mordko said
I have never come across anyone who called banks “friends” so not sure why the denial of this suggestion is even needed.
It seems like those who disagrees with "bank haters" are automatically label "bank lovers". Bank haters do see a middle ground, its either black or white.
Guess I am a "bank lovers" as I own my bank stocks for a long time, and it allows me to have a very comfortable life and early retirement to do what I enjoy. 🙂
Do I love banks ? Of course not. They never really make any money directly from me as I never pay fee whether it is banking nor credit card. My stand from day1 is they have to pay me to use their credit card.
7:13 am
April 27, 2017
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savemoresaveoften said
mordko said
I have never come across anyone who called banks “friends” so not sure why the denial of this suggestion is even needed.
They never really make any money directly from me as I never pay fee whether it is banking nor credit card. My stand from day1 is they have to pay me to use their credit card.
If you use credit or debit cards then the bank makes money from you. Part of what you pay for products and services. If you have a mortgage, chequing or savings account then the bank makes a profit by providing a service to you.
On a per-customer basis their profit may or may not be larger than on fee-charging accounts. But suspect you know all that.
7:41 am
January 13, 2022
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mordko said
If you use credit or debit cards then the bank makes money from you. Part of what you pay for products and services. If you have a mortgage, chequing or savings account then the bank makes a profit by providing a service to you.
On a per-customer basis their profit may or may not be larger than on fee-charging accounts. But suspect you know all that.
You're too modest; you're clearly levels above us. By all means, please enlighten us! If you can find time between all those backyard bank barbecues, that is.
10:02 am
September 14, 2022
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Weak Loonie could put pressure on rates.
10:55 am
January 12, 2019
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savemoresaveoften said
. . . Even more so to say since banks will raise their prime rates in lock step with BoC, why arent they doing it for the HISA and GIC as well 🙂
Perhaps you missed Peter's latest 'Savers Roundup' email ⬇
It makes for a Good Read ❗
- Dean
" Live Long, Healthy ... And Prosper! "
11:07 am
October 27, 2013
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To quote a portion of that....
But the main reason why there isn’t as much correlation between GIC rates and the Bank of Canada’s key interest rate is that GIC rates are more forward-looking. Earlier in the year, there was a greater expectation of interest rates increasing, thus we saw bigger increases in GIC interest rates. Looking ahead to 2023, the Bank of Canada isn’t currently expected to increase its key interest rate as much as it did in 2022, thus GIC rates have plateaued, at least for now.
....the bond market is also forward looking. GIC rates and equivalent bond market yields correlate to some degree.
1:40 pm
March 30, 2017
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mordko said
If you use credit or debit cards then the bank makes money from you. Part of what you pay for products and services. If you have a mortgage, chequing or savings account then the bank makes a profit by providing a service to you.
On a per-customer basis their profit may or may not be larger than on fee-charging accounts. But suspect you know all that.
Its a cost of doing business that the business absorbs when I use a credit card vs cash, so NO its not directly from me. If the business charges an additional fee when I pay using a credit card, then yes I will agree "a bank makes money from me when I use my credit card".
Re chequing or savings account, the only money that a bank makes "directly" from me is from leveraging my balance that I keep in my chequing account, so yeah they leverage off a few grand that I just keep there, while they can lend it out as mortgage I guess.
Bank did make a tiny bit of money off me when I did had a mortgage for a brief period of time. Actually I had to check it cuz they had these silly rate lock guarantee back then and cant say for sure if they ended up ahead or not. Just say my situation is unique and not like a usual mortgager. 🙂
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