Bank research, continues...
Today, I sent the assistant manager of my Banknorth branch the following set of questions (we agreed email was the most efficient way for her to help me):
1. What are the services that a bank like Banknorth offers that it collects fees on? I am assuming that banks collect fees for the following types of services: safety deposit boxes; wire transfers; cashier checks; overdrawn accounts; boxes of checks, ATM use by someone without an account at Banknorth. Can you clarify the other kinds of fees --are there fees for getting a loan or mortgage, or fees if someone invests through the bank? Anything else that there are fees for? If a savings account falls too low?
(From the website, it looks like the bank also collects fees/ gets income by selling insurance and offering investment planning and wealth management.)
2. What are the various kinds of accounts a customer can get? I know of a checking account, for which one gets no interest, and then a savings account, for which one gets some interest. And then there is a CD, for which one gets a higher rate of interest if one agrees to keep the money in the account for a certain amount of time. Are there other kinds of accounts, perhaps some that have higher interest payments?
3. What are the various kinds of loans (i.e. higher ed, mortgage, small business, etc) at Banknorth --is this the typical list of loans in most banks? Are there different rates of interest for different kinds of loans? If so, why are there different rates for different loans?
4. Are there loans/ programs specifically intended for low income people --say first time home buyers? Im especially interested in understanding first time home buyer programs. Do they get any special help from the bank? Does this vary from bank to bank?
5. What info does the bank need from a customer if he/she is applying for a loan? Does this info affect the amount of interest on the loan that the customer gets? (That is, if someone has a bad credit report, or if the bank thinks that the customer's business venture is a bad idea would the customer possibly get a higher interest rate on a loan?) On what basis does the bank decide whether or not to give a loan?
6. Approx. what percentage of customers default on a loan, say in your branch or in Banknorth at large, or just generally in the US (whatever numbers you have) and what happens then?
7. If I understand correctly, the bank "makes" money by charging various fees, but then also by collecting interest on loans and making investments. What are the kinds of things the bank invests in? And what group of people make the decisions about what to invest in?
8. I understand that the Federal Reserve has the power to set the fractional reserve amount, that is the percentage of money each bank has to have available on hand (and thus how much of its assets it can lend out at a given time.) Do you know what this fractional reserve amount is right now, and how often that fraction changes? If you dont know this, no problem --I will try to ask the regional Federal Reserve bank.
9. I read the TDBanknorth has assets of approx $30 billion. Approximately what percentage of the bank's assets is actually deposits/ bank accounts? Im assuming some portion of the assets are bank accounts, and some other portion of the assets is profit from investments, but Im not certain one can easily distinguish these things...Any thoughts? Im mostly trying to see if bank accounts are, in fact, a small or large portion of the bank's assets.
Today, I sent the assistant manager of my Banknorth branch the following set of questions (we agreed email was the most efficient way for her to help me):
1. What are the services that a bank like Banknorth offers that it collects fees on? I am assuming that banks collect fees for the following types of services: safety deposit boxes; wire transfers; cashier checks; overdrawn accounts; boxes of checks, ATM use by someone without an account at Banknorth. Can you clarify the other kinds of fees --are there fees for getting a loan or mortgage, or fees if someone invests through the bank? Anything else that there are fees for? If a savings account falls too low?
(From the website, it looks like the bank also collects fees/ gets income by selling insurance and offering investment planning and wealth management.)
2. What are the various kinds of accounts a customer can get? I know of a checking account, for which one gets no interest, and then a savings account, for which one gets some interest. And then there is a CD, for which one gets a higher rate of interest if one agrees to keep the money in the account for a certain amount of time. Are there other kinds of accounts, perhaps some that have higher interest payments?
3. What are the various kinds of loans (i.e. higher ed, mortgage, small business, etc) at Banknorth --is this the typical list of loans in most banks? Are there different rates of interest for different kinds of loans? If so, why are there different rates for different loans?
4. Are there loans/ programs specifically intended for low income people --say first time home buyers? Im especially interested in understanding first time home buyer programs. Do they get any special help from the bank? Does this vary from bank to bank?
5. What info does the bank need from a customer if he/she is applying for a loan? Does this info affect the amount of interest on the loan that the customer gets? (That is, if someone has a bad credit report, or if the bank thinks that the customer's business venture is a bad idea would the customer possibly get a higher interest rate on a loan?) On what basis does the bank decide whether or not to give a loan?
6. Approx. what percentage of customers default on a loan, say in your branch or in Banknorth at large, or just generally in the US (whatever numbers you have) and what happens then?
7. If I understand correctly, the bank "makes" money by charging various fees, but then also by collecting interest on loans and making investments. What are the kinds of things the bank invests in? And what group of people make the decisions about what to invest in?
8. I understand that the Federal Reserve has the power to set the fractional reserve amount, that is the percentage of money each bank has to have available on hand (and thus how much of its assets it can lend out at a given time.) Do you know what this fractional reserve amount is right now, and how often that fraction changes? If you dont know this, no problem --I will try to ask the regional Federal Reserve bank.
9. I read the TDBanknorth has assets of approx $30 billion. Approximately what percentage of the bank's assets is actually deposits/ bank accounts? Im assuming some portion of the assets are bank accounts, and some other portion of the assets is profit from investments, but Im not certain one can easily distinguish these things...Any thoughts? Im mostly trying to see if bank accounts are, in fact, a small or large portion of the bank's assets.
posted by oat collective at 9:12 AM
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