So, How DO the Banks Make Money Off of us?

[Rascal]

Seriously, we order anywhere from 25 to 200+ lbs of coin a week from a given location. Personally I have it taken out of my account, and then re-deposit back to the same account after I cash in (coin out, paper in). Are they making money off the deposits, i.e. setting aside a percentage each time for loan? or are they just being nice folks and giving us the extra services for free? Unlike a commercial customer, that is?

Rascal

 

[TimZim]

We cost them money. They hope every one that comes in will be happy and we will do all our buss.. with them!! car loans buying housea what ever fees fees fees

 

[Okie115]

I think they make plenty of money from our credit cards, auto loans, mortgages etc. they owe us a reach around now and then.

 

[Weaselbrott]

In all honesty, the whole notion of coin roll hunting and the process alone is a great "hack" of the system, and a quite brilliant one. I think banks are losing an ass-ton of money when we order boxes from them, but on the flip-side, I'll bet that many banking institutions have access to all sorts of insurance policies to cover their losses. Also, perhaps banks can "write-off" the loss from the extra volume of coins?

 

[canaboy123]

When ever
You deposit any amount. Of money the banks only are required to hold 10% the other
90%
Is used by the bank for what ever they
Please .

 

[bigscores]

When ever
You deposit any amount. Of money the banks only are required to hold 10% the other
90%
Is used by the bank for what ever they
Please .

Yep, so when you deposit $100, they can loan out $90 and get a return, the other $10 is left as cash. Generally speaking, a good return for a bank/trader is 20% per year. Doesn't pay for the boxes or anything, but when you look at people like my in-laws or parents who keep 5 figures in their accounts, the numbers pretty easily cover the fees for dozens of boxes per year for major banks.

 

[Easy]

It's not even the "cost" of the boxs. Which isn't that much at all. They lose more in man hours processing our pickups and dumps.

 

[kontrapunktus1750]

but when you look at people like my in-laws or parents who keep 5 figures in their accounts, the numbers pretty easily cover the fees for dozens of boxes per year for major banks.

It obviously isn't enough for one of my primary banks. With a little bit of arrogant attitude from the manager, I was cut off from buying dime boxes yesterday. I have a couple of "little" accounts at other banks and they are incredibly accommodating--although I think the prospect of finding much through them is rather limited.

Getting back to the issue of the first bank, however, this has been the last straw. My accounts with them are not insignificant either. I don't pay any fees, but I don't get a whole lot else beyond that. I intend to make some changes to some automatic debits I have, and after that, I will return to that branch and close my accounts.

 

[kfs]

They, banks do not make money off people searching coin rolls. They do not make money of supplying business with coins accept for the fact they to get business accounts they need to supply coins, If banks had their way transactions would all be done by check, credit card or debit card and preferably debit card. The last thing they want is cash transaction and even less so coin transaction.

Look at the banks that cut people off from getting boxes of coins or want to charge a fee. They are not doing it because they want to give up a source of revenue. Cash handling and more so coin handling is a cost source to banks, one that they at least at this point in history absorb into there cost of doing business. We are lucky bank will order halves for us in reality. When was the last time a clerk at a story gave you a half dollar as change. In today's world they are rarely used. I use they a lot just to look at peoples reaction when they get them.

The short of it is a bank's business model normally includes supply coins to customers. We are customers so they supply them and they take deposits but do not think for a minute that the guys running banks would not love to dumb coins or at least charge a fee for providing coins.

They are just afraid that if such a policy was implimented other banks would use it to steal customers away.

 

[cooper36]

Seriously, we order anywhere from 25 to 200+ lbs of coin a week from a given location. Personally I have it taken out of my account, and then re-deposit back to the same account after I cash in (coin out, paper in). Are they making money off the deposits, i.e. setting aside a percentage each time for loan? or are they just being nice folks and giving us the extra services for free? Unlike a commercial customer, that is?

Rascal

I think we bailed them out a while back and maybe now they are repaying us!!!

 

[PhattyB]

If you're dumping all types of coin, then they can wrap them and not have to pay a courier to deliver them. Which, if I understand correctly, is a flat fee regardless of the amount of boxes. I know larger banks have deals with the couriers that basically amounts to yearly salary service, irregardless of volume, which is why buying coin from them is so easy.

 

[BuffaloBoy]

I understand that the banks pay a flat fee per week, month, year, or whatever the contracy may state, so most banks don't mind ordering for us. my thoughts. but we do cost banks money in the long run, 2 tellers have to go into the vault... they have to lift the boxes(which doesn't cost the bank any more money), but they aren't doing their "job" at the teller window when providing service to us.
my 2 cents.
hh
buff

 

[sagittarius98]

I understand that the banks pay a flat fee per week, month, year, or whatever the contracy may state, so most banks don't mind ordering for us. my thoughts. but we do cost banks money in the long run, 2 tellers have to go into the vault... they have to lift the boxes(which doesn't cost the bank any more money), but they aren't doing their "job" at the teller window when providing service to us.
my 2 cents.
hh
buff

Technically, the tellers are doing their job. Their job is to serve customers who enter a bank with their banking needs, whether it's to withdraw 5K from their account, or pick up a box of halves. The time they don't do their job is when they refuse to get coin for us that is already in the vault or drawer.