Here is a little history behind the banking system. Banking institutions were created out of a need to satisfy the market to provide loans to the public. As economies grew banks allowed the general public to increase their credit and make larger purchases. President Washington signed the bill into law in February 1791 that the Bank of the United States, now commonly referred to as the first Bank of the United States, opened for business in Philadelphia on December 12 1791.
The idea was to serve as a repository for federal funds and as the government’s fiscal agent. It wasn’t long after the industry become a vacuum to sucking you for whatever you have to only give little in return. If you pay close attention to this scenario here you will see. Imagined that
you have $10000 in a bank account on that money you are getting an of 0.01% which is $1.00 every month those caring bankers give you your one buck that’s $12 with change for the year.
On that same $10000 they holding for you your money all while lending it to someone else to buy a car, house, or even to find a business. They land that money out all while they are charging that person 4.87% or higher depends on your credit and other factors. The national average is about 5.27% base on the interest they charged. They are bringing in $487.00 from the money they are giving you $1.00. don’t get shock yet it get crazier. In a period of 24 months they already make a profit more than double the money that you supposedly be saving $11,688.
Now imagine they go around and run the same scenario for 1000 accounts which they do. $11,688 X 1000 equal to $11,688,000 million. In 24 months on 1000 accounts that have about $10000 in each with the bank giving out loans at 4.87% which below the national average $11.7M will be their bringing home money without spending a dime.
Most of the time they have you pay fine and fees on top of that. Because we too busy clocking in and out we don’t acknowledge those little details how we getting rip off. Be wise with your money let it works for you not for someone else and after that you go beg them for a loan.