Taking A Simple Interest In The Dark World Of Banking

Yesterday was my son’s tenth birthday. Last year, we put his $50 of birthday money from his grandpa into a new savings account at a local bank. He was crazy excited about the concept of his money increasing over time with simple interest. We even took him into the bank and explained the whole concept in front of the bank officer.

He was more excited about getting mail than anything else, so we gave him the envelopes unopened. Yesterday, we went over to the bank with his new birthday check.

Teller: “Your current balance is $35.”

The bank was charging him $5 every quarter to let him know by US mail he had earned a few pennies. The bank officer never mentioned the $5 charge or offered e-statements.

I guess the good old days of opening a savings account to learn about simple interest are behind us in the days of banks sucking every fee they can off their customers like the remoras they are.

The kid actually did learn a lesson about banks.