Bank Scam #1: Save Money

Rawa Mazowiecka Bank Scam #1: Save Money

Welcome back to Rich Man Poor Bank. It is finally time to expose the most common scams the biggest banks use to lock up your money–while paying you nothing–while they invest your savings for personal profit. Over the next 10 weeks I will be posting many of the most common scams I see when working with middle-American families. Let’s start with biggest scam of them all: “save money.”

A common question I always ask when talking to groups is, “How many of you were brought to the bank when you were young and told to save money?” Virtually everyone in the room raises their hand.

I then ask, “Is saving money good for you? Or is it good for the bank?” Almost all respond, “It is good for the bank.”

Americans know they are being taken advantage of, but many continue to take their money to the bank. Pinneberg Why? The answer is simple. They don’t know of a better place to put it.

To uncover why save money (in a bank) is a scam, simply ask your banker these 10 questions and you can decide for yourself.

1. What do you do with my money when I give it to you?
2. Do you have quotas to open checking and saving accounts?
3. Is it true that bank interest is the lowest rate of return and the highest form of taxation?
4. Ask a two-part question: What rate of interest are you paying on my money? At the current rate, how long will it take to double my account balance?
5. If inflation is 3% and you pay me close to nothing, doesn’t that mean I’m always losing the purchasing power of my money when saving in your bank?
6.  If Bank of America also owns Merrill Lynch (which invests money) how come the banks don’t help me get my money invested?
7. For every dollar I save in the bank, how much money can you lend as debt to other Americans?
8. Why do  you require seven days’ written notice before giving me my money?                                                                                                             “Federal regulations require us to retain the right to require all savings and interest-bearing checking account depositors to give seven days’ written notice before making a withdrawal. It is unlikely, however, that we would require this notice.”
9. Is the primary goal of the bank to help me? Or is it to serve the interests of the executives and shareholders?
10. If you make money by paying me as little as possible and charging me fees, why shouldn’t I just move my money to a local not-for-profit credit union?

“So are you saying that saving money is bad?” Actually no, I’m not. Saving and investing is VERY important and I suggest you sock-away a minimum of 10% to start. Learn to live off 90% of your income. This simple concept is used by the wealthy and is called “Pay Yourself First.” Saving in a bank is paying your bank first, not you.

Today I don’t save any money in a bank. My local credit union has better insurance, less fees, and more ATM’s (click here to learn how) than any of the biggest banks. I live a bank-free life…and you can too!

Check back with us soon to review the other 9 bank scams. And be sure to watch Bill Maher in a short video (click here) as he discusses big banking. Please “like” the video and forward it on to everyone so they too can escape “abusive relationships.”