Business and Finance Analysis

When you ask anyone how to make money a bank will respond to granting loans, investing in securities … that’s true, but many do not know that the biggest source of profits for banks are the commissions. It can be said that banks and charge fees for absolutely everything.

The committees are established by each institution, in consultation with the Bank of Spain to ensure that meet certain requirements and comply with the law.

Must be necessary, ie to respond to a service and not covered by another product contracted by the client, must be communicated to customers and posted on the bulletin boards of offices, are not abusive (on this should be discussed much) can not be charged for transactions carried out by failure or negligence of the entity can not be cashed in if there are no contracts and can not exceed a fixed amounts (eg 1% cancellation rate mortgages variable).

Bank charges are applied more

The commissions that normally apply are: for transferring money, to keep accounts, to withdraw money from cash, to have cards, study and / or create a credit, cancel, for having an overdraft.

Actually, it is difficult to escape them. The only thing we can do is compare the different entities and seek the lowest commission, because although in theory the commissions should have the degree of marketability, consumers often do not find ourselves in a strong position against the entity.

If you need a loan and the Bank X gives to you, surely you can not get to demand that you remove this or that committee. In Spain it seems that bank customers tend to be quite tolerant and slightly combative when accepting payments imposed on us. In another article we will discuss how we can be more effective when negotiating some bank fees.

Average annual expenditure of a person in bank charges

A study by Consumer magazine, the annual expense of a person in commissions can vary between 40 and 210 euros, as in a normal situation is to have a checking account, credit card, a debit card, make an average of six transfers, and any income checks.

Moreover, as a credit request must checkout and pay the relevant fees and opening study … and not think of anything in advance of the debt, because then the commission will also pay partial or full prepayment (see article on repayments mortgage). And if we find a bank that will lend us money for something cheaper, take the mortgage will lead us there subrogation pay the relevant commission.

Entities that do not charge bank fees

Lately we see in many media entities ads say they do not charge commissions. We appreciate the effort, but not we say that in reality, all this has buts and small print.

There are a number of committees (such as keeping accounts) are not charged to creditworthy customers or shareholders, but others continue to claim (as the opening of mortgages).

Other entities determine the not charge you a broad range of commissions to you customer loyalty with them (payroll, insurance, mortgages, accounts, cards, pension plan …). So far recovered that lose revenues.

If we said at the outset that the commissions as a whole are the main source of profit of entities clearly we will never eliminate them entirely. Only eliminate the commissions financial (maintenance of accounts, transfers to an amount, issuance and renewal of cards.) Is business. And no business sacrificing your goose that lays the golden eggs. At best, let in 50 golden eggs make a normal.