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How banks trick you into saving money than you think

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Banks are considered the safest place to store money. But you don’t know that every time you spend, save or borrow money, banks make a profit. There are unusual practices that banks follow, but are incomprehensible due to the complexity of the financial system. We’re not saying that using a bank is a bad idea. All we want to tell you are 10 facts about saving money that banks don’t want you to know.
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10 FACTS THAT BANKS DON’T WANT YOU TO KNOW

Unfortunately, there are things banks don’t want you to know. Like hidden fees and sticking to low-interest savings accounts that can drain your money. Here are some other secrets your bank is probably trying to keep under wraps.

1.Decreasing value of your money

You are not informed when the value of currency is decreased. They just ask you to follow the same rule as they made on very first day. It is hard to know about the value of currency on your own. The banks hide this biggest truth just because of their own benefit.

2. Banks use your money to do business

Banks always cut your money in different ways such as any tax or many other schemes. They did this because in this way they can earn more and more money and start their other businesses.
 

3. Check your account statements regularly

It is better to check statements of your personal account because it is the only way you are notified about the changes or transactions made into your account. So always keep checking about this because if there is any other scheme that you don’t want to follow then you can withdraw your money as soon as possible.
 

4. Fees on card transactions

The main thing you all have to noticed is that there is always a specified fee on any kind of card  issued by banks. Where is going these type of charges? Definitely, the bank is  consuming your money in this way.
 

5. Bankers want to meet targets

The other main reason is that the bankers are given particular tasks in order to get there promotion. They just want to interact more and more people in order to have more chances to complete the target.

6. Saving account rates can change overnight

The annual percentage rate (APY) that banks offer for savings accounts is volatile and can change at any time (even overnight). Interest rates for savings accounts are based on the federal funds rate. The federal funds rate is the amount that banks borrow and lend to each other overnight to meet the needs of the Federal Reserve. These interest rates fluctuate based on economic growth or contraction.

7. Paying off a loan early may cost you more

As you learn how to manage your money, you may decide that it’s a good idea to pay off the loan when you have more money. Paying off credit cards early may be good for your credit, but paying off your auto or personal loans early can result in early repayment to your lender.
 
 

 

8. There is nothing as a free checking account

When researching the best checking account, you may come across free or no-fee options. While these may sound appealing, some have account minimums or hidden fees, such as ATM usage, check printing, and overdraft protection. Fortunately, banks are required to disclose their fees when opening an account, so make sure you read all the requirements and are aware of possible fees.
 

9. Online banks are a better choice for high-yield saving accounts

When searching for the best savings account, you may think that keeping all your accounts in one bank will save you time and effort. However, online banks tend to offer a higher APY than traditional brick-and-mortar banks, so be sure to do some comparison shopping before opening another account.
 

10. Credit unions may offer better rates on loan

Credit unions are non-profit and usually have low overhead. So you can transfer savings to lower interest rates on loans, mortgages, and even credit cards. Credit unions may have lower account fees, but it’s always a good idea to compare several financial institutions when applying for a loan or mortgage.

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