Bank promotions are everywhere. They want your money to be deposited with them. That is why it is so easy to find a checking account promotion for pretty much any bank you want to go with.
Here is how the banking system works. They take your money, let’s say $100. Then they take your money and loan out a percentage of the money you’ve deposited. Let’s say they loan out $70 of your $100 to someone to start a small business.
Now, with your $100 on deposit and then $70 loaned out, you have now created $170 in the monetary system. It’s kind of like magic, but not really. So the more money that you have on deposit, the more the bank can loan out or invest with. The best investment strategy has always been to use other people’s money. That is what banks do. They invest with your money.
That is why they want your money. That is why there are so many checking account promotions out there. They want your money to invest with.
That is why they even give you interest if you get a savings account. They pay your 2% a year to use your money to make 10% a year. They make a 8% margin.
So here is a tip if you currently don’t have free checking. Go find a bank that does have a free checking promotion. Then switch banks. It’s pretty simple.
Either that, or just tell your current bank that you will leave unless they give you free checking. Many times they will give it to you so you keep your money with them. Again, they are making money from your money and they want you to keep it there.
So now you see why banks want your money. Now you can use this knowledge to leverage your money. Remember, yes they give you a valuable service by giving you a bank account. And you may even wonder why they give it to you for free and what they are getting out of it. Well, now you know.
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