Dear Editor,
I read, with interest, an article recently published in the business section of The Nassau Guardian, headlined "PLP senator blasts government on financial services oversight". It particularly discussed the question of fees.
In August 2014, RBC introduced a fee of five dollars for each check cashed at their institutions for those persons who do not have accounts with them. The other institutions waited to see if there would be any public outcry and since there was none, some other banks also implemented a fee to cash checks.
Savings accounts were designed exactly for what the name says, but the banks are also charging monthly service charges, even those that have little or no activity (BNS $4). And if that's not insult to injury, there is an added VAT charge on the fee.
The pennies received for credit interest amount to less than the monthly charge, and in essence, you are in a deficit. The sad thing is that we grumble and complain among ourselves, but nothing is being done nationally to demand that the government do something about these fees, after all it's Central Bank of the Bahamas that governs these institutions.
The interest rates on savings and term deposits are ridiculously low, in some instances, 0.25 percent, compared to mortgages and other consumer loans anywhere between 10 to 15 percent and higher, not to mention credit card interest 18 to 23 percent or even higher.
The records will show that The Bahamas offices are the leaders in generating profits, however the surplus is then transferred out to the various jurisdictions.
If this government cared so much for the Bahamian people, this type of behavior by the banks should never have been allowed to happen. Now that one of their senators, Jerome Gomez, has brought it to their attention and not the other party, let's hope that something is done about it.
Indeed, I would also like to know, how does any government sit around and allow banks to charge fees for cashing checks in this, my country, the Bahamas?
Is this what HELP and HOPE is all about?
- Mizpah Strapp
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