Comment Re:Why do these exist (Score 2) 211
Check out some credit unions. I think mine required a $5 buy-in/minimum deposit or something silly like that. The only fee I've ever paid (10+ years) was for my mortgage application. The catch is they don't have 3 branches in every single town throughout the US...which doesn't matter if you're poor and don't travel or rarely need a teller (like me).
The banking industry of the 80's was a mess. The prime rate hit the highest ever of 21.5% and averaged around 15% for the decade (currently 3.25% for reference). It's no wonder they could pay a few % interest on accounts and still make plenty of money of loans without fees. Even at the lowest, the prime rate was 3x what it is today. Plus the deregulation of banking led to all kinds of nasty things. Most people forget how many banks failed in the early 80's and how many new ones popped up. The FDIC spent a ton of money (especially for the time) refunding deposits from failed banks.
Personally I'd rather a $8 fee than a 15% prime rate. Granted the poor are still taken advantage of and also wind up paying much higher interest rates...but that's a more complex socioeconomic issue. It's not just greedy banks.
A different issue though - the amount of background checking a bank does to open a simple check account. I declined and walked out a few years back when I realized what they were asking of me and asking me to sign - especially when they refused to let me have a copy of some of the paperwork I was told I had to sign.