The yields offered by banks are laughable. This situation got several well-known companies thinking, "Let's sell debt to consumers who recognize and trust our brand, and offer interest rates on it that are slightly higher than these CDs and money markets." Thus, the "floating-rate demand note" was born.
Free checking is becoming an endangered species as banks add fees for basic services or add requirements like direct deposit or high balances. The latest move comes from Bank of America, which charges a $8.95-per-month fee Tuesday for customers who want paper statements or the use of tellers.
Adding another twist to the concept of online banking, PayPal has added an iPhone app that allows users to photograph their checks and deposit the funds into their PayPal account, according to an Associated Press report.
