Banks, similar to credit card companies and stock agents before them, are hoping their customers stay safely unaware of what the financial industry actually entails. Fortunately for banks, most customers are living up to the industries exceptionally low expectations. The vast majority of banks, especially those with large downtown offices and football stadiums, do not operate with the customer in mind – regardless of marketing to the contrary. Banks are businesses, straightforward as can be. The more money they can extract from customers, the better the business and the more profit the shareholders and proprietors of that business make.
Considering the majority of us are customers of those banks, this scenario does not paint a lovely picture for us. You and your checking account are the means of income for some of the greatest and most profitable companies on the planet. Do you have any idea what amount the banks trust you’ll never sort out about your accounts?
One of the most noticeably awful things you can do with your money is save it at your local bank. Money ought to be used for useful investments whether they are interest bearing accounts, bonds, stocks, products or real estate. Restated, the most noticeably terrible thing you can do is stockpile your money in a place where it would not incur any interest or will incur so minimal that you’re losing money in the long run. And ironically, this is exactly what a great many people do. Banks trust that we keep on doing it and smiling all the way, indeed, to the bank.
More than $1 trillion dollars is being kept in checking accounts that pay practically no interest and in savings accounts that cost more in expenses than they make in interest. Banks make more than $2 billion from ATM transactions alone consistently consider that next time you ecstatically agree to pay the small expense for administration and visit https://www.marketing2business.com/definitions/bank-run/. The most popular way to save money for most consumers is in a bank savings account that is often earning under 2%. That does not keep up with inflation, not to mention you can find the same account paying twice as much with simply a minimum of research.
Most consumers with statement savings accounts and too much money at the bottom of their checking account do not realize they are doing anything wrong. The bank certainly is not going to reveal to them that keeping money in these two places assists with making the financial institution a greater profit by paying you almost nothing. Only by doing your schoolwork and understanding your options with regards to checking, savings and loans can you navigate the dim waters of banks and their financial games.