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The pitch to banks is that these accounts bring in new customers with higher balances.
Morrison said these people "are on higher incomes, have higher balances, have already benefited significantly from the generous tax contribution and other concessions for superannuation.
Market research shows they tend to keep higher balances, buy more products, and as Wells Fargo reported, are more than 50percentt less likely to leave.
Online customers, says Avid Modjtabai of the bank's Internet services group, tend to keep higher balances, and seem to be much more likely to buy extra products, than the unwired ones.
But the system tends to disproportionately punish both big savers and people investing in actively managed mutual funds, since people with higher balances and higher expense ratios on their investments end up subsidizing their fellow workers.
The Spanish economy minister, Luis de Guindos, told the meeting that insured deposits — those of €100,000, or less — could become vulnerable under some circumstances if uninsured depositors with higher balances were force to take losses along with bank bondholders during crises.
Similar(37)
A higher balance generally makes me a more profitable customer for the bank.
If asset prices are higher, balance sheets will look healthy; if interest rates are low, borrowers can service their debts.
Decide what is most important to you in a current account, whether that's low overdraft fees, higher balance interest, or cheaper foreign transactions.
Mr. Brown would not say how much cash was being kept at hand, but said "it's a higher balance than one would expect to see".
In its study a third picked the card with the lowest APR, even though it had a higher balance transfer fee.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com