5 Reasons to Break Up With Your Big Bank

In This Video:

In celebration of Financial Literacy Month this April, I want to discuss how to get the most out of your banking experience. On this episode, we’re talking about compound interest and how your big bank could stop you from benefiting from this simple financial literacy concept. As well as recommended alternatives to keep your money safe and working for you.

Things to Consider:

Compound interest is one of the cornerstones of financial literacy. Albert Einstein called it the eighth wonder of the world because of the snowball effect that happens with compounding. And with interest rates sitting at four to five percent, you are missing some serious snow if your money is not in a money market fund, high-yield savings account, or a short-term CD. 

A lack of compound interest is one of the biggest reasons to break up with your big bank. Banks like JP Morgan, Bank of America, Citigroup, Wells Fargo, and US Bancorp are notorious for paying their clients little to no interest. I’m lucky if I make a few dollars per year with my Bank of America account! If you're not getting compound interest on your checking and savings account, or if you are and it’s not at least four percent, you should break up with your bank. Or at least keep a minimum amount of money in that account.

Key Points in This Video:

0:00: Intro

3:19: #1 Clients are Paid Low Rates of Interest

6:25: #2 Ridiculous Bank Fees

7:53: #3 Limited Features

9:01: #4 Convenience

10:59: #5 No Love for Loyal Clients