7 Dirty Secrets Your Bank Doesn’t Want You to Know

Using the Float

Banks benefit from “the float” – holding onto your money for a period before transactions clear. This provides banks with interest-free short-term funding.

Lobbying Against Regulations

Banks spend millions lobbying politicians to influence financial regulations in their favor, sometimes at the expense of protecting consumers.

Hidden Fees Everywhere

Many banks charge fees for services you might assume are free, like account maintenance, paper statements, or even teller interactions.

Low-Interest Rates on Savings  

The interest rate on your savings account is often much lower than the rate of inflation, meaning your money loses value over time.

High-Interest Rates on Loans

While they give minimal interest on your savings, they charge significantly higher rates on loans and credit cards.

Teaser Rates

Some banks offer promotional interest rates that look appealing but jump significantly after the promotional period ends.

Overdraft “Protection”

While it sounds helpful, this service often comes with hefty fees each time it’s used.

Reordering Transactions

Some banks reorder your transactions from highest to lowest, not chronologically, to increase the chances of an overdraft.

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