So I was thinking the other day about how banks make so much money off overdraft fees. Then I started thinking, imagine a bank that instead of taking money from people who legit have none, they gave them money instead

So, obviously that could be abused so you’d have to have a limit to how often it could happen or whatever. But the concept got me thinking

Instead of giving wealthy accounts great interest rates, you give the low income accounts great interest rates. The wealthy accounts would be very low interest, stagnant, or even negative, and that money would be redistributed to low income people.

The wealthy obviously wouldn’t have much incentive to put their money there, but if it was looked at as a sort of charity, or wealthy were shamed via social media cancellation etc, or you get a handful of wealthy people who give a s*** about income inequality, I think you could make a pretty big difference

First, why would anybody who isn’t rich bank anywhere else? You’ve got no fees and a better return on investment than any other bank. In turn the regular banks would need to become competitive to get their business back and would start offering similar incentives.

It’s kind of a libertarian approach to socialism. It’s a redistribution of wealth in a voluntary fashion.

Thoughts? Ideas on what other ways a bank like this could redistribute wealth?

What

big brain

Currently, banks make $30 billion off over draft fees from people who don’t have money. That money goes to the wealthy.

That got me thinking of ways that banks could help people financially instead of taking money from the poor and giving to the rich.

Ideas such as:

-when someone hits overdraft, the bank gives them a supplement to keep them from having $0

-low interest loans

-higher returns on low income savings accounts

Which would be funded by getting wealthy people to put money in with low, or no, returns.

Ideally most working class citizens would bank here, which would cause other banks to be more competitive and offer similar deals to try to win back working class citizens.

I’m just thinking out loud basically, but I think it could be a good idea if it was pulled off well. Voluntary redistribution

I'm not sure why banks would do this unless they became state owned and this was a federal program of convoluted welfare

I'll sum it up for people cause for some reason I actually read through it:

Bank gives people with no money high interest rates, but people with a lot of money low interest rates.

Why would rich people use this bank? Because the public would shame them into philantrophy.

Banks as they exist right now, wouldn’t do this.

I’m saying, a bank created for this purpose. Why would a bank do this? Why do wealthy people donate to charity? Why has Bill Gates spent billions on philanthropy? It would be a bank that’s not there for profit, it’s there to improve the world.

Also, doing this would ultimately be successful financially because you would bring in a lot of customers. You’re making banking profitable for the 99%. If you’re doing so in a way that significantly benefits people, you will get a lot of customers. Banks currently target and compete for the 1%. This bank would be competing for the 99%, which would be a much larger demographic to pull from.

Somebody like Kanye, who thinks outside the box and at least claims to want to change the world, would be an example of somebody I think would get behind a concept like this.

Other megarich people may put at least some money in to avoid negative publicity (Bezos, Musk).

But ultimately the idea is that it would be banking as a form of philanthropy. Look at the demand to end income inequality. We can wait on the government to end it, or we could find ways to break the mold from within the system.

Yep, pretty much this. Nice TLDR for it lol

So shame rich people into charity lol ok

Im kinda confused, but overdraft fees are satanic. always call the bank with a fake sob story to get ur f***ing money back

most mega rich people dont have that much in actual cash first of all....

like most of kanyes net worth is for owning part of businesses

I’m aware of this lol, not sure how that negates the idea that banks profit billions of dollars currently. Basically just a non-profit bank that gives the earnings back to low income account holders instead of to CEO’s and wealthy account owners lol, I don’t see what’s so outlandish about this concept

Why not discuss ways to eliminate poverty while you’re in a system that you want to change? You hate capitalism, but you’re stuck in a capitalist system and that likely won’t change anytime soon. The idea here is a bank that instead of taking profits, gives those profits back to low income bankers

So a bank that loses money instead of making money?

A bank that gives would-be profits to customers to encourage more customers to join

so the low income people would still have to pay out the ass on interest rates and the wealthy remain relatively unaffected

Because the rich have no shame lol

OP is suggesting rich people put money in to a bank where they essentially give there interest away

Imagine working for the bank in this scenario and trying to convince people to open an account... "we lose your money!"

Wealthy people putting money in would be doing it as a philanthropic move. Recruiting working class people would be much easier. You get all the working class people on your side, the rich would have to play ball.

Not in the ideal scenario, where the bank would strive to have the lowest interest rates around on loans and the highest returns on saving accounts for low income bankers

why would they do this over donating money to charity themselves