Week 4: Why Your Bank Wants You to Save – And Why You Shouldn’t

We’ve all heard the advice: “Save your money.” But here’s the truth—keeping your money in a traditional savings account is one of the worst financial moves you can make.

The Numbers Don’t Lie

• The average savings account earns 0.45% interest (FDIC, 2024).

• Inflation averages 3-4% per year (U.S. Bureau of Labor Statistics).

• That means your money loses value every year by sitting in a bank.

How Banks Profit Off Your Savings

When you deposit money in a bank, they don’t let it sit there—they invest it. Banks make money by:

• Loaning it out at 10-25% interest rates (credit cards, personal loans).

• Investing in the stock market and real estate.

• Paying you less than 1% while making 10x more.

They get rich, and you stay stuck.

Where Should You Put Your Money Instead?

1. IUL Insurance – Your money grows tax-free, and you can borrow from it without penalties.

2. Real Estate – Property appreciates over time and generates passive income.

3. Cash Flow Investments – Businesses, franchises, and dividend stocks can pay you regularly.

Your Turn

What’s the worst money advice you’ve ever received? Drop it in the comments!