Opening an SVB Bank Account

[taulantmehmeti]

I'm having difficulty understanding this "SVB currently charges $25 per month to maintain your bank account and waives this fee with a $25,000 monthly balance.?" What does it mean in plain english?(especially the waiver part)

[foobarbazetc]

As long as you have 25k in the account they won’t charge the fee.

I thought SVB got rid of the startup accounts?

They jacked up our monthly fee to like $100/month and we ended up moving to Chase.

[gesman]

Wow.

They charge people for privilege of giving them $25k+ to reinvest at their discretion for their own benefits?

This is lol.

[cascom]

Administering a checking account is not cost-less. Looks like SIVB’s return on assets is 1.87% [1] implying $467 of annual revenue for the account at $25k average balance. This is probably more or less break-even (maybe it’s $200?) - point being is they lose money on small accounts...

[1] https://finance.yahoo.com/quote/SIVB/key-statistics?p=SIVB

[ian0]

It is completely bonkers. But it seems to be working for them, apparently they done quite well last year - got some nice tax cuts too!

https://www.fool.com/investing/2018/04/27/svb-financial-grou...

[taulantmehmeti]

Thanks for the replies, since i'm outside of U.S I wanted to open a U.S bank account through Stripe Atlas.

[ripalsanghani]

They'll waive the $25/month fee if you maintain a $25K balance every month.

[cascom]

just note the that the $25k is a an average daily balance (so ~$750k in the account for 1 day a month or $25k in the account everyday of the month...)