Think Your Money’s Safe In the Bank??
(Shared by Joe Overfield, VP – Financial Planning Division, Bank On Yourself Authorized Advisor)
I was speaking with a potential client yesterday whose current savings account is holding just over $300k. When I asked him why he was keeping so much in a savings account, his answer not only shocked me, but further enforced that people truly do not understand our current banking system.
The client was uncomfortable investing this money in the market and did not know where else to put it. He also stated, “I realize I am not making much in my savings account but at least it is safe.”
What the client doesn’t know is that he is wrong on both accounts and unfortunately he would not have found out until it was too late. When your money sits in a savings account, it is working for the bank, not for you!
First of all, the banks are making substantial returns on mortgages, lines of credit, car loans, and credit cards by loaning out your money. (Has anyone noticed lately how much interest the banks are paying you for the use of that money?)
Secondly, how safe is your money in a savings account? The FDIC will guarantee up to $250,000 in one account so we think our money is safe….
Read the fine print people!
If the bank fails, the FDIC has up to 30 years to get you your money back. They guarantee you will get it back, but in their timeframe, not yours.
Do you want to take control of your financial future or leave it in the hands of our banking system?
Request a free analysis with a qualified advisor and get the facts! (Or at least educate yourself – read books (we can recommend some), articles (such as the ones here), and don’t just listen to mainstream media and Wall Street brokers.)