St Lucians close accounts as bank prepares to impose increase in fees

By SNO Staff

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Clients of the local RBC Royal Bank branch have reacted angrily to the news that holders of Personal Savings and Personal Banking accounts at they will be required to pay a monthly fee of $25 on each account as of next month.

Several St Lucians have been ending their business relationship with the bank, ahead of the introduction of the new fees which will take effect here on Monday, June 20, 2016.

The new requirement means that customers remaining with the financial institution for personal banking would pay the bank $300 for the year and $1,500 over five years.

Although the new fees will not affect senior citizens over 60 years and savers under the age of 17,  dozens of personal accounts have been closed here since the bank announced its new fees, it has been reported.

Other Caribbean islands have been affected by the increase and most customers have reacted the same way.

The Eastern Caribbean Central Bank (ECCB) in a statement last month, had expressed concern about the increase in commercial banks’ fees and charges across the Eastern Caribbean Currency Union (ECCU).

The ECCB, however, does not have authority to regulate the banks.

 

(14)(4)
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27 comments

  1. Its true in same countries u hv to pay the fees but for checking account not simple accounts ,but that to much $25.00 not even $1.or $2.00 per month things so hard and they not raising workers

    (0)(0)
  2. A whole $25.00 monthly? That's WASCO's bill per month. I think that's rather unfair to the people and I agree with everyone who decided to close their account.

    (0)(0)
  3. Perhaps UWP's banker may have an option with the Credit Union. But it too must be regulated as soon as it begins to offer the full services of a banking intermediary.

    (0)(0)
  4. I only have ECD300.00 on my account, so I guess next year around that same time my account will be ECD 0.00, the bank is taking more money a month than I can save in a month

    (1)(0)
  5. RBE- Royal Bank Of Extortion

    To those who comment that is it hard times for the bank...I dont really think they have assesed the financial state of the people to say that the bank should increase fees on customers cause of hard economical times...TOTAL BS!

    (8)(0)
  6. yall damn right everyone that this is affecting should close their account and take their money. these banks to damn indiscreet cause if you dont pay the money they move it off your account i mean man for some poor people that 25 dollars is alot its not your money stop taking the people money. first Caribbean has that same policy to but i think it was five dollars. am not sure if it has been increased but i took all my money and put it somewhere else. shate these people on, now i see why the people say they going to start putting their money in mattress or put it in tin and hide it under the dirt lol. but on a serious note everybody should close their account in any bank that taking people hard earned money they save

    (8)(0)
  7. This banks have been here for donkey years,is that a strategy of trying to close their doors on the region?

    (14)(0)
  8. It is very costly for a bank to service an account with a few hundred or somewhat more Dollars.
    The economy of the Eastern Caribbean countries is not doing well. Over 20% of loans and mortgages are overdue. Be aware that if one deposits money in the bank, it is actually a loan from you to the bank. If the bank goes belly up, you will loose the money. Things are not easy for the banks in the present economical crisis. In many countries of the world it is the same.

    (3)(27)
    • I agree, my deposit is a loan to the banks. Therefore, I should be receiving maximum benefit for my investment (deposit). The bank is charging $25 per month while I am not receiving a commensurate return. I think they should close down.

      (0)(0)
    • We don't know that the creators of the ECCB ever considered mechanisms for protecting the ordinary deposit account, and to what amount for each depositor. Deposit insurance is required to protect against "the destruction of capital" by financial intermediaries associated with the ECCB.

      The lapse in regulation allowed by the framers of CSME permitted CLICO ride roughshod in the savings market, regarding insurance policies and savings instruments. That loss of collateral shaved some 2% off the annual GDP of some countries affected by the CLICO implosion. The area covered the Bahamas in the North to Trinidad &Tobago in the South.

      (1)(0)
    • Do they not know how to manage their business well?

      I had two accounts with one bank who recently put in monthly fees much less than $25.00, I closed one account.

      (3)(0)
  9. Did RBC try to milk the bull?

    Looks so to me. Who advised them?

    Who were their financial advisors? The SLP?

    Must be.

    (20)(16)
  10. Hmm seems Lucians did not see the new fees being imposed by BOSL? Service charges ect. Them banks are taking the poor man for a ride.0

    (12)(1)
  11. the power of the people is speaking on banking fees.
    time will come they will speak on telecommunication fees too.

    (22)(0)
  12. Dont worry ECCB we the customers will regulate them by closing our accounts and them going out of business.the others will understand our regulations.take heed bosl

    (20)(0)
  13. Sheer madness...and their interest so low 2%
    I would have done the same to close my account had i been a client!
    Mwen fache'

    (15)(0)
  14. Same speed like the loosing party. Send that bank parking!!!! And I have to come beg for a loan, stand on line for hours with 7 out of 10 Windows saying next teller please. We will bank our money in our mattresses

    (23)(0)
  15. This is just so ridiculous!!
    So tell me RBC, if someone has an account with a balance of $500 and another with a balance of $10,000, are both accounts subject to the same monthly fee of $25??

    So it is okay for RBC to use my savings to invest and get a return on these investments PLUS charge me a monthly fee of $25??

    Do you know have long it takes a family earning minimum wages to save $300 a year? Not everyone is fortunate to save in excess of $500 a month, given their circumstances.

    (24)(0)
  16. AA totally ridiculous.If i had money there i would remove everything.Nonsense.

    (8)(0)
  17. I was told by the bank that persons over 60 years would require to pay $12.50 monthly.
    I am over 60 so I decided to close my account with them.

    (20)(0)
  18. Wow i guess from one to another... Vat was the killer there goes monthly bank fees. Some people cannot afford to pay bus fare. Want to find out if there are regulations on such poor lucia.....

    (5)(0)
  19. Banks have been struggling in the region for years. The financial crisis hit them harder than they let on. The banks are using these "invisible" fees to increase their profit margins. Look at the increase in "invisible" fees for everything. Credit Unions need to step up their game.

    (13)(0)
    • Credit Unions lost their independence as they are now under the purview of the ECCB. Essentially, they are screwed.

      (2)(0)
      • What Crap you talking? Do your homework and find out about Credit Unions. I will not educate you but tell you this...ECCB has absolutely no interference in the Credit Unions... go do your homework

        (0)(0)
    • aa, so we the people not struggling. I have to pay $30 for a letter to file taxes bearing in mind that i pay more than $15,000.00 annually in interest to that same bank. so who is having a harder struggle, me or the bank? $30 for a standard bank letter is absolutely ridiculous! is the ink in the pen to sign the letter that expensive? if it is then they need to get another pen.
      They lend our money, charge us for everything atm transactions, letters, deposits & withdrawals, high interest on loans, 3rd party and we get nothing at the end of the day.
      The banks are taking us for a ride and it is high time that it stops.

      (0)(0)
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