Epic Real Estate Investing - 7 SECRETS Banks Use to EXTRACT Money From Your Account | 1390

Episode Date: November 24, 2024

In this eye-opening episode, we dive deep into the seven hidden tactics banks use to exploit their customers and maximize their profits. From the subtle ways banks profit off your savings to the various fees that seem to appear out of nowhere, we reveal the strategies that financial institutions don't want you to know about. You’ll learn how banks manipulate the order of your transactions to trigger costly overdraft fees, and how they use fine print and confusing terms to make money off you without your awareness. We also break down why using a credit card may offer you greater protection against fraud compared to debit cards, and discuss the often-overlooked advantages of credit unions as an alternative to traditional banks. Plus, we expose the truth behind so-called "free" checking accounts, showing how they often come with hidden charges that could end up costing you more in the long run. Whether you’re looking to avoid unexpected fees, protect your money from fraud, or simply make smarter choices when it comes to managing your finances, this episode provides the knowledge you need to navigate the world of banking with confidence. Watch now and take control of your financial future! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a's.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Did you know the bank executives regularly sit around conference tables and plot evil schemes to extract money from their customers accounts. They've come up with a number of these secrets over the years that could be draining your wallet without you even knowing it. I'm exposing seven shocking truths that banks they don't want you to know. And number four blows most people's minds when they first hear of it. Number one, banks always encourage you to save money.

They've got catchy ads, savings accounts with tempting names, and they make it seem like they're helping you build a secure future. But here's the truth. Banks don't actually want you to save for your benefit. They want you to save for theirs. So they can take your money, invest it, and earn high returns while giving you next to nothing in interest. Most savings accounts, they pay less than 0.5% interest while the bank is using your cash to earn far more. You're essentially letting them make money off your money for free.

I did find a bank that's paying more than 4% interest on their savings account. Now, that's not going to make you rich. but it's like five times better than most bank's savings accounts at the moment. Find the link in the description for Wealthfront. Use it that link and we both get a 0.5% bump on our accounts, getting us close to 5% interest on our savings. Did you know banks invest your savings for their profit? Number two, ever felt like your bank is charging you for everything?

Well, that's because they are. Banks make billions of dollars each year from fees, maintenance fees, overdraft charges, ATM fees, and even hidden mortgage fee. These charges, they might seem small, but they add up fast, and banks rely on the fact that most people don't read the fine print. Check your accounts regularly. If you see any fees you don't recognize, call your bank for an explanation. Don't let them nickel and dine you to death because they will if you let them. Now, we've only cracked the surface here, still to cover a secret few people know about their ATM cards,

where anyone can go instead of a bank for lower rates on real estate and car loans, and how they use the word free to fool you. And then there's this sneaky tactic that infuriates most people when they first learn about it. Number three, banks can rearrange the order of your transactions, especially if you're close to overdraft. You see, instead of processing transactions as they happen, some banks will wait till the end of the day and then process the largest ones first. Why?

Well, because if your account dips into the red, it triggers multiple overdraft fees instead of just one. So, for example, if you have $100 in your bank account and you make three, three $30 purchases, then one $80 purchase because you know that that day your paycheck is going to be auto deposited into your account, banks might process that $80 one first to cause an overdraft, then hit you with the three overdraft fees on those little $30 charges, and then credit your paycheck to your account. It's shady, but it's legal. I remember years ago when I was making the transition from the music business to real estate,

and this happened to me, and I was hit with $105 in fees in one day, gobbling up 30, percent hooked my paycheck for that week. I was bagging groceries at the time, and that's what I was getting paid. So if you can relate, let me know. Drop a comment below. Number four, here's a secret most people don't realize. Credit cards are safer to use than debt of cards. Why? Well, because they offer better fraud protection. You see, with a credit card, you have more time to report unauthorized transactions. And if there's a dispute, the bank investigates without taking money directly out of your account. But if your debtor card gets compromised, that's your actual cash. And it can be weeks before you get it back. So next time, think twice before swiping that debit card online or at the

gas pump. I learned this when I first moved to Vegas. After having my debit card compromised at the gas station, it took me a week to get several hundred dollars deposited back into my bank account. Consider from now on using your credit card for most purchases and then paying it off in full each month to avoid that interest. You'll get the added security without the risk of running up debt. And right now, if you have a 680 credit score or better, no collections or bankrupt, in the last seven years, Citibank has a special program for real estate investors where they are giving up to $150,000 and zero percent interest capital at no cost. At zero percent, that's as good as cash from your ATM. And you can rack up some serious points by using this instead of your ATM card.

You can get the details at no cost capital.com. Number five, most people don't realize this, but bank rates and fees are negotiable, whether it's a mortgage rate, a loan fee, or even those annoying maintenance fees on your checking account, you can ask for a better deal. Banks want to keep your business, especially if you've been a long-time customer. So the next time that you open up a new account or apply for a loan, don't hesitate to negotiate. You might be surprised how often you can get a better deal just by asking. Number six, if you're tired of getting the short end of the stick with your bank, there's another option, credit unions. You see, unlike traditional banks, credit unions are non-profit, which means they're not out to make huge profits off of you.

Therefore, they typically offer lower interest rates on loans and higher rates on savings accounts. Plus, they're known for better customer service. If you want to maximize your savings and minimize your borrowing costs, check out a credit union in your area. You might find it's a much better fit for your knees. I mean, if you're thinking of getting a car loan or opening up a new savings account, compare the rates at your local credit union first. You could save a ton of money.

Now, I've got one more for you, but understand that every dollar that your bank quietly takes from you in fees and in interest rates or shady tactics isn't just lost today, it's a missed opportunity to grow your wealth tomorrow. You know, over time, those small charges they snowball into thousands, even tens of thousands, draining your financial future without you even realizing it. Banks, they rely on the fact that you won't notice, that you won't push back, and that you won't take control. So staying passive and playing it safe while they nickel and dine you, it has a devastating cost. It means less for your family. less for your investments, and less for your future freedom.

The stakes, they couldn't be higher when you consider all that. And the only way to win is to stop letting them quietly chip away at what's yours. Now, number seven, banks love to advertise free checking accounts. But don't be fools. Many of these accounts have hidden requirements, like maintaining a minimum balance, setting up a direct deposit, or making a certain number of transactions each month. If you don't meet these criteria, you could be hit with monthly fees, and you most likely will be.

read the fine print and make sure that you understand what free really means. It's often not as simple as it sounds. Banks aren't going to tell you these secrets because it's not in their best interest, but now you know how to protect yourself. So don't let them take advantage of you. Use these tips to make smarter decisions with your money. And don't forget to read the fine print. I will see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know. someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I.

Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. We didn't know home for us. We got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com. Thank you.