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shazow
@shazow.eth
I'm trying to put together a list of all the ways we've accepted anti-consumer properties of traditional banks, what else am I missing?
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Connor McCormick ☀️
@nor
what's the issue with checking and savings accounts being different?
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shazow
@shazow.eth
See the first 5 line items. :) It's a combo move. Checking accounts have no interest rate (ie. free money for banks), yet we're forced to use them for no real reason. Why can't everything be a savings account with a competitive rate?
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Will
@will-333
From the bank's point of view I think this makes sense. From CD to savings account to checking for example you go from having locked up funds to relatively stable balances to checking which has constant in and outflows of cash. Because they need to stay liquid they can only invest part of this in short term vehicles.
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shazow
@shazow.eth
I don't believe banks treat those funds in a separate/special way, everything is tiny fractional reserve anyway. The rest is loaned out.
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Will
@will-333
Even if they're not bucketed and used as such they're still incentivizing behavior that maintains a more stable average daily balance.
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shazow
@shazow.eth
That's exactly the exploitation! They're incentivizing customers to keep a balance in a special account that gives the bank ~100% of the interest profit, when those accounts could get a share of the interest just as easily.
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