The income of the banks is irrelevant - they are an institution that is privately owned and are geared towards making a profit. Sure they work in a highly regulated sector, but as long as we accept that they are private entities we also accept they are there to maximize profits for shareholders.nmclean wrote: ↑Jun 16th, 2017 9:13 amI'm not sure this argument works regarding banks with steadily increasing net incomes in the billions, but anyway... I think your assumption that they need fees to make up for deposits of "little value" is inaccurate. $3.90 equates to only 2.34% of $2000 annually, and they could easily do better than that. I think the real reason for the change is to deliberately make the Everyday Chequing less attractive and push people into switching to the Smart account. They literally advertise the Smart account on the same page that announces this change in the brochure.
There are costs associated with a bank account - if there are no fees with the bank account who do you expect to pay these costs? Obviously other customers will, but why is that fair? That is greedy on the part of the "free" customer to expect others to essentially give them a free ride.
Further, the banks can borrow at the overnight rate - which is currently 0.5%. That means that our $2000 balance saves them $10 a year in borrowing costs. Do you really think that offsets the costs associated with having a bank account (debit card, statements, mailouts for agreement changes, etc.)? I don't think so.