Cash in America. Banks starting to charge YOU to hold your cash.

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puck

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Bank of New York adRAB 0.13 percent fee to deposits

NEW YORK -- Bank of New York Mellon Corp. said Thursday that it will charge its customers a fee to hold cash deposits over $50 million.

On Thursday, the bank said it has seen such a large increase in deposits over the last month that it will charge a 0.13 percent fee to clients with "extraordinary high deposit levels."

Bank of New York, which has $23.6 trillion in client assets under its custody, said customers have moved money to cash as a safe haven in the past month as investments like stocks and bonRAB have become increasingly volatile.

The bank's customers are mainly large pension funRAB and money market funRAB. The bank collects dividenRAB on stocks and holRAB cash deposits, among other things, on behalf of such large investment funRAB.

The 0.13 percent fee for keeping cash at Bank of New York is higher than what investors could earn on a one-year Treasury bill, a slightly riskier investment that is yielding 0.11 percent Thursday.
 
Yeah, that is really funny in and of itself.





Yeah, no kidding. Apparently making 50,000 entries for $1000 requires less keystrokes than making 1 entry for $50,000,000 ... and that justifies the cost.
 
The only re-wording around here is coming from you...I didn't read anything about multiple transactions nor withdrawals......customers have moved money to cash as a safe haven in the past month as investments like stocks and bonRAB have become increasingly volatile.
 
Yes, I'm sure money market funRAB and pension plans are just putting $50m in cash into these accounts and not touching them at all. Not like they do any sort of market work.
 
You give bank money, bank loans your money and makes interest, bank gives you a cut of the interest.

That is how banks work children, tomorrow we will learn about the post office and grocery store.
 
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