Once upon a time, people were encouraged to put their money in the bank. There it was considered to be in a safe place.
Below mattresses were not considered safe because you could be robbed. Savings in banks were also supposed to be good for the economy as the theory was that savings had a symbiotic relationship with investment. Once upon a time too, banks were robbed because that was where the money was! Now, banks rob people. Not only people are robbed, but banks do not want people in them; witness the lines of people outside banks in town, Grand Anse and Grenville braving the sun, and, sometimes, rain, trying to get in!
If you manage to open an account at any bank these days, deposit $100 on it; go back a year later and see how much is left, if any! It is nothing short of robbery! Once upon a time, you put money in the bank and you got interest. You had a passbook and every time you went to the bank the teller would write in your deposit, sometimes even pennies were accepted, and they would write in the 4% per annum interest your money had earned. These days if you manage to open a savings account, you might get 2% interest, a move sanctioned by the Central Bank about 6 or 7 years ago!
These days you open an account and you get charges. It is almost impossible to put money on fixed deposit in our banks. They telling you to your face that they don’t want it. In any case, whatever account you open you are liable to get charged. The favourite term is “maintenance fee” or some such nomenclature, not much different from child support or alimony. In fact, gone are the days when banks depended mainly on the interest they charged borrowers on loans. They now pride themselves on what, on their financial statements, they call “non-interest income.” This category of income is made up (i) income from investments; (ii) fees and (iii) charges. So, in this the computer age, where almost everything is operating like magic, and automatically, with very limited human intervention, the maintenance fee kicks onto your account come the 28th, 30th, or 31st of every month; and it is applied whether or not you had any transaction on your account. They should re-name it ‘holding fee’ — for holding an account for you!
Once upon a time, when savings were encouraged, you walked in the bank, and in 2-twos you practically walked out with a loan based on the amount you had saved, a letter from your employer, and the banker’s belief that you would repay the loan. Nowadays they almost want to know where you slept last night, and with who, and if you have more security or collateral than you borrowing! When they ready for you — and don’t call them, nobody answers any of the phones in any bank … they really don’t want you — you get a 2 or 3-page “offer letter” and you have to go by your old school teacher or a lawyer to unravel the document for you. If you reach this stage, is now fees and charges start. The favourite is “negotiating” or “processing” fee and this could be up to 1% of the amount you borrowing! But what negotiation you paying for? TAWU or other TUC member represented you? You did not negotiate with the bank; the bank lends you “OPM”, or other people’s money they have on deposit. Then you are charged legal fees — for the bank’s lawyers — and don’t ask to use your own lawyer, the bank will get vex! You don’t even get to see the bank’s lawyer; you are just called in to sign the mortgage deed. It’s worse when you manage to finish paying off the loan; the bank’s lawyer will take up to two years to document you back your property. You also have penalties for not being able to make a loan payment on time! Then you have other fees and penalties such as a charge for paying off your loan too early!
And, believe it or not, bank fees and charges are not regulated, like a food licence; in short, they could charge what they want. Should the Central Bank be required to have public consultations on fees and charges? Should the Central Bank have a window to handle consumer or user complaints? If these mechanisms exist is the public aware?
So, when there are less banks, get worried. It is not that they may not be stronger, but healthy competition and innovation are diminished. Beware!
Wedgewood
River Road
This is so very true. It’s the same experience we in Trinidad have with this government approved legal bandits.
This statement is so true and it’s heartening to see what is happening to people hard earned money.
A) No one has ever gotten rich from bank interest.
B) There are examples of well to do people in Grenada. These are people with Businesses ex Hadeed Real Value Student Apartment owner. Another way to do good for yourself is to educate yourselg. EX All the general practitioners
C) Over time money will be worth less. What you bought 15 years ago for $100 the same $100 is will buy less. This is inflation.
D) Banks also need to show profits. How will they pay for their employees. Hence they charge fees.
E) If you jave noticed no banks are interested in the Eastern Caribbean areas. My belief is governments want to develop the banking industry hence a lot of support to Republic Bank.
F) Grenada now will censor this comment for fear of criticism. Worried about political correctness.
As evil as the Grenadian banking industry is, the monopoly known as FLOW is worse. Prime Minister Mitchell, can you do no better for your subjects?
Well said….outrage as the banks get away with robbery.
It’s irrelevant of the author’s identity. The Author did not slander or commit a crime. Why are folks fixated on the identity of the Author?
According to my recent experience, customers are charged bank/credit due diligence legal fees (title search).
This amounts to increase borrowing cost as the customer’s lawyer also charges for title in search as part of the legal fees. In others words, the customer is charged for title search twice, one by the banks lawyer and a second time by the customer’s lawyer.
On top of that customers are charge high interest rates with a take it or leave it attitude. The arrogance and condescending attitude from the banks towards poor people is appalling.
I really like the premise of this essay, however, Now Grenada needs to stop publishing anonymous articles. No one benefits from those. Furthermore, we in Grenada are blind to what we are losing and have lost. Our dignity, our hard work, our sacrifice, and our glory have slowly been whittled away that we lack the will to demand from our leaders what we want. At the bare minimum, all Grenadians deserve consumer protection laws that regulate fees, minimise financial exploitation, and the keeping of one’s funds for future service, instead of an immediate cash refund.
Very well articulated.
Sadly, consumer protection is lacking.
I been complaining about this a while now, too. They using our money to invest and make money for themselves, but they still charging monthly “maintenance fees??” It’s absolutely robbery. While my accounts elsewhere in North America accrue interest without fees (even the checking accounts), our native Co-Op Bank is one of the worst, robbing it’s own people blind. Grenada is still 50 years behind the “developed world.”
Why would Now Grenada accept an opinion piece and the author is too scared to use his real name?
one word.. lawsuit…
although we can see that no slander was used or specific bank called, its best to be safe than sorry, especially in this political climate.
Grenada banks are like casinos… you walk in with money, you walk out with empty pockets. I put money in my mattress and it is still there next time I look.
100% I like this article. It very nicely says what I always say. Up to last night when watching the news about the CIBC thing I said same thing… now we have less options. I have thought many times of reverting to the mattress for that same reason I put in 10 dollar when I return I have 2. So the 10 I work so hard for I never get to use it. Smh. Sad.