Any Bankers here?

[olevetonahill]

Mike was one then he went to Law skool and dont have time to post here anymore

My Question is If 4000 a Month gets automatically deposited into an account and very few checks written Mostly ALL is Autopay that comes out.
Is the bank making any money?

[Curly Bill]

I'm sure they're earning interest on your money by loaning it to others.

[olevetonahill]

I'm sure they're earning interest on your money by loaning it to others.

I know the Money is in their Bank 2 to 3 days before they release it to the account

[Curly Bill]

I know the Money is in their Bank 2 to 3 days before they release it to the account

I don't know about that. As far as them earing interest that has more to do with any long term surplus you leave in the account.

[Boomer.....]

Not a lot of physical money exchanges hands. You get a digital deposit saying that you have money. They loan out the money to make interest, but still have the reserves in case you need it all.

I'm not exactly sure how it all works, but they are definitely making money. It's probably not a lot on just you, but once you add all of the customers it adds up. That's why banks always offer better deals (checking accounts with interest, etc.) for people who keep a large minimum amount of money in their account.

[olevetonahill]

Not a lot of physical money exchanges hands. You get a digital deposit saying that you have money. They loan out the money to make interest, but still have the reserves in case you need it all.

I'm not exactly sure how it all works, but they are definitely making money. It's probably not a lot on just you, but once you add all of the customers it adds up. That's why banks always offer better deals (checking accounts with interest, etc.) for people who keep a large minimum amount of money in their account.

Thanks, I been a customer for a LOOOOOOOOONG time. they gettin kinda shatty , Thinkin about seeing just how bad they wanta Keep me or If another bank will preciate me more.

[Mjcpr]

Thanks, I been a customer for a LOOOOOOOOONG time. they gettin kinda shatty , Thinkin about seeing just how bad they wanta Keep me or If another bank will preciate me more.

What does it cost you to keep your money there? I don't pay a cent and haven't for years and years and years and I use their online bill pay for all of my bills. I don't earn interest on my checking account but I do on savings, but it isn't very much...interest rates suck and I don't have very large balances anyway.

I can't beat free. Maybe I could squeeze out an extra 0.01% interest.

[olevetonahill]

What does it cost you to keep your money there? I don't pay a cent and haven't for years and years and years and I use their online bill pay for all of my bills. I don't earn interest on my checking account but I do on savings, but it isn't very much...interest rates suck and I don't have very large balances anyway.

I can't beat free. Maybe I could squeeze out an extra 0.01% interest.

Im over 60 its Free But thats Not my concern, I was curious if they valued me as a customer period.

Several years back one of their Branch Managers screwed me around, It was really both our faults for puttin off crap that either one of of us should have taken care of.
He kept sayin he would take care of it I was Busy as hell at the time and kept lettin him put it off.
Any way he got fired and I got stuck for about 7 Grand that he had told me was taken care of.

No biggie I got em paid off but Just wonder how much they value MY business now.
Thinking of a Major purchase and dont want to shop around to other banks

[Mjcpr]

Im over 60 its Free But thats Not my concern, I was curious if they valued me as a customer period.

Several years back one of their Branch Managers screwed me around, It was really both our faults for puttin off crap that either one of of us should have taken care of.
He kept sayin he would take care of it I was Busy as hell at the time and kept lettin him put it off.
Any way he got fired and I got stuck for about 7 Grand that he had told me was taken care of.

No biggie I got em paid off but Just wonder how much they value MY business now.
Thinking of a Major purchase and dont want to shop around to other banks

Time for a new hot tub? :D

[olevetonahill]

Time for a new hot tub? :D

Looking at some more Land. Just got a New Hot tub back in the Summer, Arvest did the 12 month loan for 4an 1/2 er 5 % Anyway not much and they Acted Dayum Proud to do business with me.

[KantoSooner]

Shop around anyway. Banks have internal targets in terms of what sort of loans they are looking for right now. Some may feel that they're overweight in local home loans, so aren't interested in getting into more just now...and at the same time have an appetite for commercial real estate, business loans or comsumer (car, for instance) loans.
Some bankers will be pretty open about it and some will even offer their ideas about who's hungry for your type of biz right now. Bankers are like anyone else, they'll always let you buy them lunch.

[reflector]

I can honestly say that I am not a banker.

[KantoSooner]

But I bet I could still buy you lunch, no?

[FaninAma]

With fractional banking they are making a ton of money. They can lend out at a rate of 20:1 in terms of loaned dollars:dollars on deposit.

[KantoSooner]

And, interest on the overnight float may be a small percentage but is not small in absolute dollars.

[stoops the eternal pimp]

I'm IT System Admin at a bank now.. If you have money in one, they are making money off of you.

[olevetonahill]

I'm IT System Admin at a bank now.. If you have money in one, they are making money off of you.

Bout what I thot.
How bad do they want to Keep folks?
I mean Just cause Me and the President have a few differences ( Hes a Poke And I pissed him off by wearin My OU stuff) Would they take a chance of losing a customer ?

[rock on sooner]

And, interest on the overnight float may be a small percentage but is not small in absolute dollars.

^^^^^This^^^^

Banks LOVE to talk about assets in the banking community...your $4k
a month is lumped all the other auto deposits. The bank uses that to
generate loans or make loans. The overnight float is a big moneymaker
for banks....

[rock on sooner]

Bout what I thot.
How bad do they want to Keep folks?
I mean Just cause Me and the President have a few differences ( Hes a Poke And I pissed him off by wearin My OU stuff) Would they take a chance of losing a customer ?

Dint you say once that you'd run em off ifn they had on Poke
stuff or Whorn stuff? :biggrin:

[olevetonahill]

Dint you say once that you'd run em off ifn they had on Poke
stuff or Whorn stuff? :biggrin:

His Bank, He can do what he wants. My Hill, He cant come on.

[rock on sooner]

His Bank, He can do what he wants. My Hill, He cant come on.

Heh...yup im on yerside...

[8timechamps]

Not a "banker", but similar.

Here's how the bank makes money:

1. Lending - Anymore, (and as previously mentioned) there is no real physical exchange. They lend based on what they have. As FaninAma mentioned, they make a killing on the rates. Now, think about all the Home/Car/Signature/Micro loans out there. That's a large portion of their annuitized cashflow.

2. Fees/Penalties - This is a surprising large portion of banking inflow. When was the last time anyone had an overdraft charge? I think I was in college, but I know that my local bank charges a pretty steep fee for overdrafts. In addition, if a checking account carries a negative balance, the bank charges daily fee. Then add the ATM fees (my bank charges $3.00 for every ATM transaction made at a non proprietary machine). My bank also charges a fee if your account falls below a certain threshold. I doubt that anyone posting in this thread has to deal with these fees, but you'd be surprised by the amount of people that overspend/draw their accounts.

Vet, you're probably a loss leader for your bank (as an individual), but for every person like you, there are 10 others that have a loan through your bank.

[8timechamps]

Bout what I thot.
How bad do they want to Keep folks?
I mean Just cause Me and the President have a few differences ( Hes a Poke And I pissed him off by wearin My OU stuff) Would they take a chance of losing a customer ?

Honestly, unless you are holding a sizable loan from that bank (and they haven't sold it), or you carry a huge balance, they could care less. The day's of local banks really caring about their customers, is sadly over.

[olevetonahill]

Honestly, unless you are holding a sizable loan from that bank (and they haven't sold it), or you carry a huge balance, they could care less. The day's of local banks really caring about their customers, is sadly over.

Thats what I needed to know cause they sure as hell act that way. Oh well Screw em. I think I can make a deal for the land with out em.

[ouleaf]

Been working for a bank in several different capacities for about the past 7 years now so I can probably offer a little help here. Banks, like any other business, are in existence to make money, they just do it a little differently than Business XYZ that sells physical goods, items, etc.

Banks have a few ways of making money that most commenters already touched on. They make interest off money loaned to other individuals/businesses, they can invest in securities, and sell banking services to individuals and businesses (various checking/savings accounts, CDs, IRAs, Safe Deposit Box, Online Banking, Wire Transfer, etc., etc. etc.) They can also make money off of fees/penalties for things such as NSF, overdraft, early withdrawal, late fees...basically all the stuff listed in the schedule of fees on any banks deposit agreement that they are required to post.

So back to the original question of if a bank makes money off of an account in good standing with minimal activity. Yes. Yes they do.

About the only way a bank would not make money on your deposits and your transactions would be if you did not have a bank account at all, which is pretty difficult to go without these days.

[olevetonahill]

Been working for a bank in several different capacities for about the past 7 years now so I can probably offer a little help here. Banks, like any other business, are in existence to make money, they just do it a little differently than Business XYZ that sells physical goods, items, etc.

Banks have a few ways of making money that most commenters already touched on. They make interest off money loaned to other individuals/businesses, they can invest in securities, and sell banking services to individuals and businesses (various checking/savings accounts, CDs, IRAs, Safe Deposit Box, Online Banking, Wire Transfer, etc., etc. etc.) They can also make money off of fees/penalties for things such as NSF, overdraft, early withdrawal, late fees...basically all the stuff listed in the schedule of fees on any banks deposit agreement that they are required to post.

So back to the original question of if a bank makes money off of an account in good standing with minimal activity. Yes. Yes they do.

About the only way a bank would not make money on your deposits and your transactions would be if you did not have a bank account at all, which is pretty difficult to go without these days.

Ok My Main question is. I been a customer for 20 years or better. Had good times and bad, Been a Long time since any bad . Did have a prob with one of their Branch managers as I said It was both of us. yet I bit the bullet and Paid off everything I even co-signed years ago for a 500 limit credit card. You guessed it. after several years that person got the limit increased to 2500 with out My knowledge. Then Defaulted. I paid off the entire 2500.

so why wouldnt they think i was a great customer.

[ouleaf]

Ok My Main question is. I been a customer for 20 years or better. Had good times and bad, Been a Long time since any bad . Did have a prob with one of their Branch managers as I said It was both of us. yet I bit the bullet and Paid off everything I even co-signed years ago for a 500 limit credit card. You guessed it. after several years that person got the limit increased to 2500 with out My knowledge. Then Defaulted. I paid off the entire 2500.

so why wouldnt they think i was a great customer.

Do you know if defaulting on that card has had any major impact on your credit score. I know you have it squared away by making good on the outstanding balance but the fact there was a default probably put a knock against your credit score and that can take a bit longer to clear.

If you are looking at taking out another loan for purchasing land, it probably is best to shop around. Different banks or even different branches within banks may specialize in different areas of lending (commercial, real estate, home, agriculture, personal, auto). Some banks may just be more deposit driven. Heck even look at some local credit unions to see if they might offer the type of loan you are looking for.

As far as banking relationships goes, it seems like the best ones are where the customers are also engaged in the relationship. If you just want a purely transactional account to deposit money and pay for your stuff out of, you can pretty much get that anywhere, but on the bank's end it is harder to put a face with that account and you really are looked at more like an account number to be honest.

But the customers that are engaged: stop by the branch, develop relationships with tellers, CSRs, bankers, managers, etc, then a face gets put with a name, you know who you are talking with when you pick up the phone, all that good stuff. Not saying being buddy-buddy with your banker will necessarily get you the best deal on a loan, but it does help them have an understanding of you as a person, what you are looking to do, and what solutions that bank has available for you.

As you probably know, a number of things can affect the interest rate on a loan. Amount, Term, what items/property are being financed, strength of collateral, credit history, etc. Also different banks will have their own underwriting policy so Bank A may deem your loan as a higher risk than Bank B. If the loan is for a significant amount then the rate a bank offers you can make a big difference on what you pay in total. So that is why I recommend shopping around, go back to your bank to see if they can beat or match and that is your best bet.

[olevetonahill]

Its a small banking with maybe 5 branches. Since my problem several years back with the Branch manager that got fired, I havnt dealt with em much except to pay off that CC. No it never even got behind. I knew it was in trouble and contacted the bank before anything negative hit.

[SanJoaquinSooner]

If he's Old Man Potter, you need to switch!