What Do Banks Do With Your Money?

Jerry Fetta
4 min readNov 26, 2018

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My first checking account was when I was 15. I remember going down to the bank with my dad because I’d just started working. I was opening a checking account to deposit my wages into. I was ecstatic. I didn’t know why, but I did know that everyone had a bank account and now I did too. At the time I didn’t quite understand what the bank was actually for. In fact, it took me over 5 years after that to really understand what the bank was for. If I’m honest, even though now I know more about banks than ever, I still have to ask myself what purpose a bank actually serves.

Think about it, banks are one of the most well marketed ideas. We watch movies about them being robbed as kids, we are told to save our money in a “piggy bank”, we are in school how to use bank related products (checks, accounts, etc.), and we see our parents actively use the bank. There is one on almost every corner. By the time you are an adult, you have been heavily programmed to like and use banks. Why? So that you will deposit your money there.

At the age of 19, I was briefly taught was the bank generally does with my money. Before that, I believe that when I deposited money into the bank, they just kept it safe for me so that I wouldn’t have to worry about losing it or someone stealing it (using it without my permission). Little did I know at the time, and I learned at age 19, that banks invest my money. I was taught the reality that when I deposited my money into the bank they would invest it into the global economy and make high returns, but pay me virtually nothing. I didn’t like that and I did understand that I could just cut out the middle man and do that for myself.

A few years later, I learned it was much worse than that. There is such a thing called Fractional Reserve Lending. Fractional Reserve Lending is what happens when you deposit your money into the bank. When you “save” money using a bank, they loan your money out. In fact, they can loan your money out 9x per every $1 you deposit. Think about what that means. If you give the bank $1, they can and will give you $1 to 9 different people simultaneously. This can be loaned out to consumers, businesses, other institutions, and even invested. Don’t believe me? Click here and find out for yourself.

Just imagine how lucrative of a business this would be. A customer gives you money, for nothing in return. You take their money and you loan it out to 9 different people simultaneously. Let’s use the figure of $1 just to illustrate the point easier. You get $1 as a deposit from you customer. You take that $1 and loan it to 9 people. Let’s pretend you’re charging each of those 9 people a 10% interest rate. 9 x 10% = 90%. That is a 90% rate of return. What if you’re just doing half of that? Even if you’re only making 10% of that, it is still a killer deal considering that you’re only going to pay your customer 0.10%. Now realize, that is literally what is happening you to each time you deposit money with a bank.

You give them money, they loan the money out and make double digit returns, and pay you a tenth of 1%.

Let me ask you: Why do you give them your money?
Because everyone else does? That’s a bad reason.

Because it’s convenient? That’s also a bad reason.

You’ve been marketed to since you could talk to give your money to banks. You’re just doing what you’ve been taught.

Here’s a fact:

A person cannot get wealthy while being taken advantage of by this system. This very system is just the tip of the iceberg of a much bigger problem that steals the wealth of 99% of Americans.

What if you could be the bank instead of being taken advantage of by the bank?

That’s what I help my clients do!

In order to achieve this freedom, you must understand how the system works and then do something different.

If you’d like to learn more about this system, how it works, and how you can become the bank click here.

If you’re a follower and have not read my book “The Blueprint to Financial Freedom” yet, that is the place to start. This book covers the specifics for each level in the various chapters, and you can grab the book for free as my gift.

Click here to get a copy!

The Blueprint to Financial Freedom by Jerry Fetta

To Purpose, Wealth & Freedom,

Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.

Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.

Learn more at www.WealthDynamX.com

(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)

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Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. Jerry’s mission in life is to help create millions of financially educated and wealthy families.