Business As Usual
AKA “The Problem”
How traditional banks make money off of an individual
Banks are quietly profiting at your expense. They offer you the lowest possible interest on your deposits, while charging sky-high rates on loans. As if that weren’t enough, they pile on fees—account maintenance, overdraft charges, transaction costs—all designed to chip away at your hard-earned money. And behind the scenes, they’re using your money to grow their wealth, not yours.
It’s a system that’s rigged against you, and the numbers add up quickly, taking more from your pocket than you might realize. But here’s the truth: you don’t have to keep playing by their rules. There’s a way to take back control, protect your finances, and start building real wealth—on your terms. But first, let’s take a closer look at the problem.
Key facts that reveal just how much is at stake with traditional banks:
Keep in mind, this only scratches the surface…
Deposits
- Individuals deposit money into savings or checking accounts.
- Banks then pay only a minimal interest rate on deposits e.g., 0.5% seems like half a percent, but effectively amounts to 0.005 when converted!! This can potentially be misleading depositors about the actual return on their money.
Loans
- Banks lend out the deposited money at a higher interest rate (e.g., 5-10%) for mortgages, personal loans, credit cards, etc.
- The substantial difference between the low interest paid on deposits and the high interest charged on loans creates a profit margin that benefits the bank at the expense of the customer.
Fees
- Banks charge fees… Account Maintenance Fees, Overdraft Fees, ATM Usage Fees, Transaction Fees, and the list goes on!
- These fees can erode your savings and raise the cost of managing finances, while boosting the bank’s revenue.
- They can also create significant financial stress for individuals and businesses.
Investments
- Banks invest deposited funds in securities, bonds, and other financial instruments to generate higher returns.
- The profits from these investments enhance the bank’s earnings, often without directly benefiting the depositor.
However,
Rethink Your Financial Approach
It’s Time to Rethink Your Relationship with Banks?
Don’t get me wrong, there are many fine people in the banking industry. Personally we at Be My Own Bank have many good friends that are in this business.
However it’s clear that banks profit from the low interest they pay you and the high interest they charge you—plus fees and by investing your money for their gain.
If that works for you, no need to read further.
But if you’re ready to become your own bank and keep more of your money in your family or business, click below.
