Why I Never Save In the Bank
I don’t save money in the bank.
I keep maybe 1 month of cash in the bank at any given time and I’ll tell you why.
First, when I “save” in the bank, I am not actually saving. I am extending a loan.
Most people don’t know this, but when you and I deposit money in a bank, they don’t keep it there.
They loan it out and invest it. And pay us little to nothing in return for putting our money at risk and making double- and triple-digit returns.
Second, the insurance the bank puts on my money has a few problems with it.
FDIC insurance only covers up to $250,000 per account. Which means if I have more than $250,000 in my bank account, I’ll still lose everything above that number.
FDIC insurance is also tax payer funded. Which means it actually costs me money in taxes. So the bank puts my money at risk, and if they lose my money, not only does the loss cost me, but the insurance itself to reimburse my money also costs me in taxes.
FDIC insurance is drastically underfunded and onlyhas enough money to cover about 2% of bank deposits. So if it is needed, there is a slim chance it will cover everyone.
Third, the banks are required to “bail-in” before the government will ever bail them out again.
Let’s be honest, banks shouldn’t need bail outs. But in 2008 many of them did because they made risky investments with our money and they lost it all. The government bailed them out and they used that money to pay themselves bonuses instead of helping the everyday American.
The government will no longer bail banks out and banks must do a “bail-in” first…which means they can hold our deposits to stay afloat, taking away access to our savings. I don’t like that idea. If they messed up, they shouldn’t be able to keep my money.
Lastly, I don’t earn enough interest in a bank account to amount to anything.
Banks are paying .01% in interest. How dumb is that?
This means if I leave my money in a bank, it will actually take me 720,000 years to double my money.
That return is not worth the trade off for the amount of risk I am taking on when I give my money to a bank.
So where do I save instead?
I use the Sacred Account (High Early Cash Value Dividend Paying Whole Life Insurance).
I earn 3–5% per year long term, and tax free.
My money is guaranteed against loss.
It has more protection than a bank.
It is guaranteed to gain.
And for 150+ years it this kind of life insurance policy has never lost money and always made money.
Every. Single. Year.
Why would I save in a bank when I can use this?
To learn more about how the Sacred Account can be used to pay off debt, fund large purchases, or even invest for passive income, I want to offer you a free copy of my book The Blueprint to Financial Freedom.
Click here to get your free copy!
When you order a free copy, you will also get a free course supervisor to ensure you got through the book and that your questions are answered, PLUS a free coaching call to implement the strategies you’ve learned!
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.)
