When/How to use the Banks

First of all I want to say Neverdie didn't put me up to this. I just happened to use his bank because honestly i got the best deal there which i will explain.


So I've kinda run out of PED and i've just got items left. Now logically it seems i should sell my p5a. But i thought to myself why not check out this loan situation. So first I shoped around and seen who would give me the most PED if i use my Brigadeer Coat as colateral. This ended up being Bank NEVERDIE so that is why i used it. Not all banks have the same rates for each item or the interest rate. It's not all about interest rate but it's how much will the bank give you if any for your items. So Shop around for which bank to get your loan at.

So I took some screens to show others how easy it is. Also to figure out the math too.

First of all you click on Loan Application then you simply drag your item into the field, and you are presented with the value's and terms of the loan.


Next you are presented with a Confirm explaining further the terms. Notice a couple things here.

1. You can redeem your item at ANYTIME.
2. Minum Interest payment of 0.5 PED
3. Failure to Redeem it in 30 days and you loose your item.



After Clicking Yes you will get the following message and a sort Receipt for your Loan.


Next the math. I hope someone can correct me if i'm wrong here. But I'm pretty sure how it works is. The loan for myself is 126.98 at 14.99% Anually for 30 days. So if you take 14.99% of 126.98 you get 19.034302 now reduce to a month i just divide by 12 it's a little rough cause not all months have 30 days but close enough. And the Loan will cost me ONLY 1.59 PED.

So Is it worth it? I think so at least now i got a chance at not having to sell some of my gear. So if you are in need of money and want to sell something to get some more ped. Take a loan on something else first, and if that doesn't work out just sell the initial item you wanted to sell and get back the loaned item.

Hope this helps and takes a bit of the fear of out the Bank system and maybe gives others a use for it.

Interesting to see how they work, I haven't used one and can see no reason why i would use one. I would just use my credit card that has 30 days no interest, or go without the ped until next deposit.

Norbert said:

I haven't used one and can see no reason why i would use one. I would just use my credit card that has 30 days no interest, or go without the ped until next deposit.

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well think about this scenario for example:

ALL others in soc are going on a soc-hunt, and you REALLY want to come.
You don't have any money for ammo, and there is nothing you own that you can sell that is worth enough...
BUT! You have a coat you can get a loan of 200PED on, so you can go hunt with your friends until the deposit comes in!


(btw , this thread is now Irken Invaded 2/3ds of posts so far is Irken ) lol joke

and Why to use a bank.. they been useles from the day one they came.. dunno shame on the loss some ppl made by buying em... should learn that everything new wont be makin thousands of peds profit

Nighthawk said:

well think about this scenario for example:

ALL others in soc are going on a soc-hunt, and you REALLY want to come.
You don't have any money for ammo, and there is nothing you own that you can sell that is worth enough...
BUT! You have a coat you can get a loan of 200PED on, so you can go hunt with your friends until the deposit comes in!


(btw , this thread is now Irken Invaded 2/3ds of posts so far is Irken ) lol joke

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Thats what a credit card is for, and zero interest is better than anything the banks can offer. If i misplaced my CC, then UKash would be the next option - sorry i can't see myself ever using the banks.

That being said i can understand maybe crafters using the service - freeing up ped for a crafting run, or maybe for a large purchase and to spread finances.

Still good luck to the owners of the banks and i hope their investments turn out for the best

well i think i was clear as to why it made complete sense for me. I CAN"T deposit right now and i HAVE to sell items so may as well take a chance with the bank first.

If i want to buy/do something in EU but cant afford it, then so be it. But i will never ever use the banks, thats for sure.

I play for what i know i can loose, nothing more nothing less, this is not RL, i dont care if there is something i dont can afford. For me it will always only be pixels.

Still I think that I would prefer to sell the coat (did it before) and useless crap like clothes than go for a loan. For one reason: when I sell coat and useless crap like clothes, I will get much more than bank can offer. I will get some money that actually can be used for something. What's the use for 126 ped? 126 ped is nothing. Will I get ATH or decent hof using it? Maybe, but the chance I will loose it is even bigger. Such small amount won't change anything.
If I later feel like missing some clothes or other stuff after selling them (for few hundred peds, not 126), I can always buy it back. Or buy something else for a change. Or maybe realize that actually don't need them anyway and use the money for something that's actually usefull.

it's amazing how people just hate the idea of banks sooooo much. That you try to make a thread to just show what it's about and a possible use for others to use them. And all you get is i wont use a bank, i wont use a bank, i won't use a bank.

Thats fine DON"T USE A BANK I'm just saying i found it useful and a senerio that worked for me that really made sense to use it for ME!

Is there ANYONE else out there that has used the banks willing to admit it? or Share there experience of why they did and how it worked out? I've had enough of the Don't use the bank crap thats now why i started this thread.

I really don't see the reason someone would post how they would not use banks and how this or that. Who the hell cares what they would do?? You just made a post as to what you did and if your happy then we all should be happy, not telling your an idiot for doing it. It is just what YOU did nothing more or nothing less. Be happy and forget the nay sayers.

Oh almost forgot what was the real market value of the coat, like TT +115, I would think their offer was less than the real market.

Actually I found it interesting to read this thread and find out how banks work. I've never used one and I don't know if I ever will, but I won't rule out the possibility of using one. You never know, one day there might come along a situation where I really need some ped and aren't wanting to deposit. A friend of mine uses the banks and finds them wonderful and hasn't had to pay much interest at all.

Nice thread and a good explanation.

A lot of peeps seem to forget the banks (read pawn shops) are here to make money.
In most cases it wont be on interest, which is quite reasonable, but the huge profit to be made on reselling items forfeited by those unable to buy back their item.

Personally I will never use one but I can see the market requirement for the service.

The idea behind the banks is good but there is not enough playerbase and enough items in entropia to make it worth having so many banks.

I mean, I have some items that I don't want to sell, but I need some cash, so I can pawn some of those items for a short period of time until I can get the cash. The rates are not high, but neither the price the banks sets on different items isn't high. At least I can get some cash for the items I own, withouth seling them and I know that I can recover them back for a small fee after a period of time.

I only used the banks once to see how the hole system works.

The banks are also a great tool for resselers. Those of them who have lots of peds thight up in items, can now make some capital for some bigger purchases faster by pawning the items they own and once they ressel what they bought, they can buy the items back. I'm sure that the small fee they pay to the bank is way lower that what their profit they made from resseling that item. MA made improvements to almost every proffesion in EU, so why not help resselers make some more cash? After all, EU is dynamic

Sitram

I'm not sure I'd use a 'Bank' anyway, but I'm certainly put off by the dishonest way MA have chosen to quote the interest rate. The calculation may be 'Simple', but that is exactly why the rate is misleading. Most Financial calculations are done on a Compound basis. So the annual 14.99% is actually a higher compound interest rate for 30 days, and if you repay the loan in just a few days, the actual rate would be significantly higher. I suppose 1.59 PED is a trivial amount anyway, but if you regularly pawn something for a few days, the Pec will mount up. The higher the quoted Simple rate, the more usurous the actual rate is for short periods.

RexDameon said:

well i think i was clear as to why it made complete sense for me. I CAN"T deposit right now and i HAVE to sell items so may as well take a chance with the bank first.

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Not wishing to argue too much cos it's good to an example of seeing the banks in action.

However, if you CAN'T deposit right now it does seem a rather extreme way of raising 126 ped or around £6 in UK terms for 30 days. Sure if you can't depo and want a few thousand ped and the bank is prepared to give you a worthwhile valuation of your items then fair enough but.

If you sweated 3000 bottles of sweat a day for 30 days and sold it for 0.5pec then you'd have 450 ped. OK sweating for a month may not be much fun but how long's 126 ped gonna last you and don't forget you're gonna have to pay that back too in 30 days time.

Hi,

first:
Very good explanation of the banking system, very interesting for me. + REP for this!

Second:
I'd not use the banks though. Why?

The most expensive items I own would bring not this much PED: a lonely pair of Neme Gloves (F), a FF SGH 2200M, a Marber Bravo - no big problem to count my RL coins in my coin-box, head over to next gas station & get a PaysafeCard. Same result, same efford. Better efficiency.

Guess I'm not the one the banks are made for ,-) And it was maybe the failure to create too much of them - the few participants able to utilize them in a way that would make sense aren't enough to feed 4 of them (Atlas bank closed since ever).

Maybe more services available to the banks would help - for instance the ability to run kind of "investment fonds", or such. But the banks seem to suffer the same fate like many other things in EU - started enthusiastically, then forgotten.

Ahhhhhhh, the banks ...

Have fun!

I'm glad you've found them useful for something Rex but I think the "anti-bank" opinions have some credibility. 126 ped isn't much to do things with in present-day PE but moreover, a loan of 126 from a Brigadier coat!? That is by no means a cheap item and if the money raised from the loan helps you out then that's great, but irrespective of interest rates or preconceptions about the banks if the offered value is so small compared to market value it's no wonder they haven't taken off...

Either way, it's interesting to read how they actually work as I've never been in one.

RexDameon said:

it's amazing how people just hate the idea of banks sooooo much. That you try to make a thread to just show what it's about and a possible use for others to use them. And all you get is i wont use a bank, i wont use a bank, i won't use a bank.

Thats fine DON"T USE A BANK I'm just saying i found it useful and a senerio that worked for me that really made sense to use it for ME!

Is there ANYONE else out there that has used the banks willing to admit it? or Share there experience of why they did and how it worked out? I've had enough of the Don't use the bank crap thats now why i started this thread.

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I've tried to use the Neverdie and Fort Argus banks but they're super lagged and EU crashes everytime

Majandi said:

I've tried to use the Neverdie and Fort Argus banks but they're super lagged and EU crashes everytime

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Yeah I noticed that lately whenever I enter Bank Neverdie, my game freezes up then crashes.. I can log back in into the bank but it IS annoying..

Well today I tried to get a loan. But the only "backup item" I had to give to them is my Ukash pistol (big markup) but they say the item is too cheap.

So... I'll sweat until my next deposit ^^'

im quite sure no bank owner put you up to this, since you seem to have demonstrated the major problem of the banks: too low loans to the market rate. what, 10% of the markup and that the best deal from shopping around? considering the chances of the servers being off line at the redemption deadline, depostis being offline or the bank getting bugged/closed, seems the loanee is taking the greater risk.

My only thing about banks is this..

I see many items they loaned less then 10% of value on in the little shops near the banks for resale at a + to the existing MU.

The loan is great when you need it but how screwed are you when EU locks deposits like not too long ago.. or when returns suck soo bad you cant get the ped back to pay that loan..you just lost (in your case) a really nice coat. How bad are you gonna feel when you see your item for sale over existing MU that you could have got by auctioning it to begin with?

obviously with a coat like that you can afford to depo to pay the loan if necessary.. Many cant that is why so many say "I would never use the banks".

Kind of makes me wonder though... might be a good way to dispose of hard-to-sell items....

I went into a couple banks to see what items they had for sale. Luck was with me, I didn't crash -- only lagged a bit.

The scant items they did have were marked FAR beyond the going markup, so the good news is that your item is very unlikely to sell if it gets appropriated, and you may just be able to convince them to honor the loan terms to get it back (with a good enough reason, that is).

It's almost like they don't want our business on EITHER side of that deal. Poor offer on the loan, and significant overpricing on the sell of defaulted items.

Regarding Neverdie's bank specifically:

Beyond having yet another extravagent display of Neverdie's riches, what was the bank supposed to be for again?!?

Sure, it's an exageration, but it almost seemed like 90% of the bank was devoted to either statues or pictures of him living it up. Don't get me wrong, his successes are a good thing for EU and great PR, but I went in expecting for the bank to have some kind of purpose... and I just don't get it.

Hmm, the above seems overly critical -- it's not about Neverdie, it's the implementation of the bank that I'm criticising here. They may be able to fix that, maybe some day that's where we'll go to buy cars or purchase tickets from pilots...

banks would be more useful if they actually gave you at least close to market value.. who wants to risk loosing a 3k ped item for 1.5kped.. only to see it in the bank shop for 4k if you do default..

of course i can think of some very useful things to do with those auto-buy shopkeeper pads.

This is great! Thanks so much for the info and the screenies! I really does sound like good value

I have used the banks a couple of times now. I dont have a credit card on the system as I prefer to use Ukash.

Both times I have used a bank, I used The argus bank simply because it was willing to loan the most amount for my item.

It seems clothes always give a crappy amount like in Rex's demonstration, so I prefer to use my 5B plates. They are something you can funtion perfectly well without, but fetch around 100 ped each.

On both occasions, I ran out of money a day or two from my normal deposit day, but typically the offer of a good hunt or becon run came up and I didnt want to miss out. The banks offered me an ideal solution and because you can redeem the loan at any time (you dont have to wait until it expires) after a couple of days I deposited, got the plates back and it cost me peanuts - such a small amount i didnt really pay attention to it...



I think for many, the opposition to the banks has become more about the principle of them rather than the practicalities of it.

The things that annoy me are the people who state the banks have no use whatsoever or no point whatosever. Well, they have a use to me, and many other people. Just because you have no use for them does not mean the statement "they have no use" is correct.

Secondly, the people who say they worry about the system being down, or not being able to access the bank etc when the loan is due and worry about losing thier item. You simply do not understand the system then. MA have already qualified this once, stating the bank system is secure for the user as the loans are guaranteed by mindark. If there is a problem, report it and they will sort it out. Also, you can redeem your loan any time, so why not use Argus bank which offers the longest loan time of 6 months... you can repay at anyt ime and lets face it, if Entropia went down for 6 months you would have more to worry about than your loan!

Anyway, bottom line is remember the banks do have a useful purpose for some people, and you shouldnt really try putting people off using them by stating your assumptions as facts or your opinions as law.

+rep Rex for making a useful guide


Edit: And first person who says I just posted my opinion as law gets a kick up the arse!

PINKY said:

Secondly, the people who say they worry about the system being down, or not being able to access the bank etc when the loan is due and worry about losing thier item. You simply do not understand the system then. MA have already qualified this once, stating the bank system is secure for the user as the loans are guaranteed by mindark. If there is a problem, report it and they will sort it out.

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When this statement was made, I pointed out that MA could only achieve this by preventing a Bank from selling on any items which they acquire through defaults due to the reasons you gave. Suppose a rare item were pawned and defaulted. MA cannot duplicate the item because that would reduce its value, so they have to get the original back from the bank, and they have given an unconditional guarantee with no time limit. I hope MA have told the banks about this.