7 Ways Your Bank Is Ripping You Off
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You know how banks tell you they have your best financial interests at heart, and how they try to convince you to open accounts with them? Enticing offers and promises can be tempting but not all that glitters is gold, especially as banks are concerned. There are several means through which banks earn money, and many of them are result of taking yours. Here are the seven top ways banks on a financial ride of a lifetime!
Number 1: Savings Account Rates
There are two popular ways by which you can operate a savings account. You could have a traditional savings account, or as the modern-day permits, an on-line savings account. Regardless of the type of savings account you operate; the interest rates are absolutely nothing to write home about. Over the years, savings account rates have nosedived drastically, and keeping your money in these accounts will never amount to anything tangible.
Going by the FDIC’s reports, all you can get in terms of rates via an average U.S savings account is about 0.06%. Shocked? I know I was when I read this statistic but let me explain further. If for instance, you have a savings account with $10,000 in savings, all you would earn in interest in a full year is a measly $6. Yes, just $6!
How awful is that? Considering all the trouble you went through to open the account with the bank you would think they could at least offer interest that would somewhat fight inflation. Now, you may be scratching your head, wondering why the rates on your savings account are so low? Well, you can blame the Federal Reserve’s monetary policy. This policy aims at reducing interest rates for the purpose of stimulating growth. But you, the customer, can take part of the blame as well. I say this because banks are so used to having so many deposits from their customers, that they are nonchalant about offering higher rates. Why should they, when customers keep making endless deposits without demanding higher rates?
Like I mentioned earlier, the 0.06% interest rate is what most average banks offer. However, there are top-tier banks that offer as much as 10 times that value in interest. If the customers have the mindset that they deserved more, they would logically open accounts with such banks and have their deposits flow in that direction…
