Ridiculous Bank Charges – A Story by Mohamad Mrad

“It’s been half a year since I initiated conversations with FH. After considering various advisory firms and solutions, FH chose to become my client in January 2022. This journey, I must admit, is thrilling.

Our goal is for FH to retire at 45, setting our strategy timeline to seven years. The strategy, crafted by Mohamad Mrad, involves several asset classes and aims to accumulate the necessary working capital by 2029. However, I won’t delve into the strategy specifics here.

One element of our strategy is what we term “sustainable investment plans”. These involve monthly investments to bridge the gap in our total investment pool, which consists of real estate, bonds, private equity, and alternative investments.

As we implement this strategy, we’ve noticed that each card transaction costs us between 2.5 to 3.1% monthly, depending on the bank. This fee, charged by banking solutions like Visa or Mastercard, amounts to a significant $6,000 USD over a decade.

An alternative is a bank standing order. However, each transaction on an elite or premium account incurs an additional $11.4 (equivalent of 42AED) + 72AED, or around $19.5, charged by the corresponding bank. This totals to about $31 USD per transaction, which is nearly 55% of the card cost option.

This is unacceptable. A sustainable investor making monthly transactions to build an investment pool shouldn’t be charged exorbitantly for a standing order. Banks should significantly reduce these charges.

DeFi will soon force a change in this behavior. For now, we’ve found an innovative solution to drastically reduce these costs. Unfortunately, I can’t yet apply this solution to all my clients.