🚀 go-pugleaf

In article <58s7bv$3kt@freenet-news.carleton.ca>,
Patrick Coghlan <bn207@FreeNet.Carleton.CA> wrote:
>
>As far as I know, CIBC is the only bank with this "minimum interest
>amount" policy.  I made an error in my original post when I said that both
>CIBC and Bank of Montreal had a $5 fee.  At BM customers are charged a
>minimum of $1.25 per month for overdraft protection - regardless of
>whether or not they go into overdraft.  This is much more reasonable.

It is unclear to me why a flat $1.25 charge is more reasonable.

From the cost-to-customer view, $1.25 every month is $15 a year, which
mean you could overdraft 3 month and break even. I imagine many people
overdraft less often and many people overdraft more often.

From the cost-to-bank view, surely if you don't overdraft, it costs the
bank almost nothing; but the month that you do, there could well be lots
of computer and human processing; so it is reasonable that the bank charge
transaction fees (which is not to say that I think $5 is reasonable).


-- 
Stanley Chow;  schow@bnr.ca, stanley.chow-ott@nt.com; (613) 763-2831
Bell Northern Research Ltd., PO Box 3511 Station C, Ottawa, Ontario
Me? Represent other people? Don't make them laugh so hard.