The purpose of the service is to:
i) Provide a safe place for individuals to store their BitCoins without fear of theft, or loss through fire, physical damage etc (as would happen if your computer broke)
ii) Provide investment opportunities for larger stakeholders with long term growth in mind
CoinReserve is similar to a Bank in the sense you deposit BitCoins, but it is aimed more at people wishing to store away their BitCoins for the long-haul, and those looking to spread their portfolio.
The charge incidentally is 1% on every deposit you make, my motivation isn't greed so I don't see why I need to charge exceptional amounts.
1% is a lot for backing up a file, but I'll play along. How do you plan to secure the bitcoins? What encryption method will you use, and who will have the password? Will there be one master password, or one password for each account to minimize losses in the event of a breach? Will there be 100% reserves except for the "larger stakeholders" who choose to participate in an investment? If there isn't 100% reserves, you should really be paying some kind of interest. If there is 100% reserves, why why do you need access to my bitcoins? I could just give you encrypted copy of my wallet.dat for you to backup for me. Finally, if something were to happen to you, how will anyone withdraw the bitcoins. You need to have at least one secondary contact point with access, just in case.