A bank in need is NOT a friend indeed!

You might be aware, for those who operate a bank account with one of the local banks, should the average monthly balance fall below S$500, a service charge of S$2 will be imposed per month. This works out to be S$24 per year. Do you realise how much that is? It is so easy for the bank to earn money. What loss does the bank incur when the balance falls below S$500? Why do they deserve to deduct the S$2 service charge? What service has been rendered that they need to charge the bank account holder? It sucks, doesn't it?

On the other hand, for you to earn S$24 of interest from the bank with your savings, you need to keep S$4,800 with the bank for 12 months at 0.5% p.a interest rate. How minute is the interest amount! But, when you take a loan from the bank, you will be charged at a hefty 4-5% interest rate per annum. But, they get away with it!

Recently, it was reported that quite a good number of people were turned away by the banks when they were trying to apply for a housing loan. The reason is: "due to global economic situation". Banks like to befriend you when you have money; but when you are broke, you are not their friends. They don't welcome you. When the weather is good, banks give you an umbrella; but when it rains, they take it away.

So, be wiser the next time when you deal with banks. Do you remember our foreparents used to keep their cold hard cash in Milo cans under their bed? If you can no longer stand the high-handedness of the banks, try this!