How Banks Rip You Off

The five main ways that banks rip you off because we know that banks care about their bottom line they want to make money and the way they do that is oftentimes by trying to rip a lot of people off so in this video I’m gonna go over five of the main ways they do it by the end of the video you will know each of them and hopefully that will allow you to evade the next time a bank tries to rip you off so these are in no particular order but let’s jump into it let’s get into the first way that banks will try to rip you off .

The first way that banks will try to rip you off are through monthly fees so if you look for your bank statement you’ll likely find a lot of charges something saying something along the lines of a service charge or oftentimes like a monthly fee for having that account and the price of the fee often isn’t a ton but it varies depending on even account size or bank that you are at and these fees have always frustrated me because you don’t see why they’re there you don’t get why it is and it just feels like you’re being ripped off so for me what I’ve done is I’ve looked at the service charge and if you read the fine print at a lot of banks oftentimes there’s ways to get out of that monthly fee so for instance Chase Bank has a monthly fee on their accounts,

However if you have over a particular amount in your account then you don’t have to pay that fee or a lot of places if you’re a student I’m a student then you don’t have to pay a monthly fee I believe that’s the case that Bank of America my checking account there I don’t have a monthly fee so it’s important to read the fine print and just make sure that if it’s attainable or if there’s any way that you can get out of that monthly fee then do so maybe it’s just putting some more money in there but these fees are oftentimes quite annoying but there are usually ways to get out of it just to be aware of it because these banks don’t want you to know that there’s certainly a way out of it so just do a little bit of research and maybe if it’s too high of a fee you might be able to find somewhere else because even ten dollars a month is just an annoying fee to have to pay.

Number two our savings rates and what this is is essentially if you have a savings account at a bank oftentimes it will have a particular interest rate that comes with it and if you look at the major institutions out there Bank of America Chase Bank and any other big bank that you can think of if you look at their interest rate it is very very small something along lines oftentimes of 0.01 percent 0.08 percent and what this is is essentially a little bit of money that you are getting back every single year based on the amount of money you have in there however it’s kind of new its kind of came out in the past few years is this idea of high APY savings accounts and there’s been a lot of different companies that have just been started and I’ve been growing in popularity when essentially what they have our savings accounts but high rates high savings rates that come with them.

So there are a lot of places that have rates of 1.5% to over 1% where as a big banks you would just be getting 0.08 percent back on your money which is nothing and it shows what how much of a ripoff this is because oftentimes what these banks are doing is they are investing it in Treasury bonds and other guaranteed investments and getting probably 2/3 percent back but they’re only giving you point oh eight percent so that shows how much of a ripoff it is and I’m glad these other companies have started and starting to show that you know you’re being ripped off so go to a high APY savings account there’s a whole bunch of different ones I made a whole video on different high APY savings accounts that you can check out I personally use wealth front and I get a pretty good amount back there I get over 1.5 percent back which is much better than I would get a chase or Bank of America so I highly recommend if you have a savings account take it out of a big bank and get it into one of these high APY savings accounts to start get some money back on top of your money.

Number three our out-of-network ATMs so if you guys have ever had a debit card and then you try to go to an ATM to take some money out from a different company you know what I’m talking about the fees on that stuff is insane and unfortunately there’s no great way out of this you know there’s no way you can really evade a lot of these fees and banks know that that’s why the fees are there but what you then want to do is just make sure you always try to go to the ATM of that particular card that way you don’t incur the fees of those other cards and if you find yourself in the position where you are always stuck and you can never find the ATM for the bank that you currently have then you may want to consider opening up a checking account at a particular different bank of an ATM that’s more common to you that way you don’t always have to pay that kind of ripoff fee for out-of-network ATM so that’s kind of one way out of it you know if your bank isn’t around and you see the other one all over the place then maybe open up a checking account for some money in there so you at least don’t have to pay this fee over and over again.

Number four when I was writing the script for this one this was kind of one of the first things I thought of because I was having to pay for that right then and that are check costs so if you guys have ever went and tried it bought like a small checkbook or something like that that is linked to a particular account of yours you know what I’m talking about so I remember the first time I went and bought a checkbook or just to get checks for a account that I just opened this was the first time this was back in high school and I expected it to be like one to two dollars for some reason I almost thought it was free I don’t really know what I was thinking or why I was under that impression but then I found out it’s like thirty forty dollars often times at different banks to get different checks and it just felt like a ripoff because you you look at it and it’s just food paper thin.

It’s just ink on it and you’re like this this doesn’t have to be this much money so when it comes to this it is important to just look elsewhere and see if you can get cheaper ones so for me I looked at Costco and Costco had some cheaper checks that I was able to through their still more expensive than I would like but you can’t find cheaper ones oftentimes the ones at the bank are gonna be the ripoff because that’s kind of where the problem is starting but if you look elsewhere then you can kind of hopefully get a cheaper amount but really anywhere you go there’s no secret sometimes I know there are some banks that may give free ones so that’s I guess a huge perk if you have one of those but I don’t have any of the banks that I have but that is something to think about and I just see it as a ripoff and it’s not a fun time you got to buy some more checks it’s not the end of the world but it’s a little more than I like to spend.

Number five and this is the last one that I’m gonna be talking about and that is large minimum balances so I’ve seen a whole bunch of different checking accounts and even savings accounts that are out there that have minimum balances of fives tens of thousands of dollars you know I’ve seen bank accounts that have a minimum balance of $10,000 and the one reason that this is a ripoff because even if you put $20,000 in there really only 10,000 of that you’d be able to take out because you can’t go under that minimum balance oftentimes if you do then you incur a fine or then you don’t get some savings a rate that you may like and what’s festering about this the way you can kind of know it’s a ripoff is because you know what the bank is doing with that $10,000 you know they’re taking that $10,000 and then they are going investing that and probably getting to 3% back with Treasury bonds or if they’re a little more this risky into more riskier stocks they can be getting more like 5 6 7 % and there’s nothing you can do about it so they’re just taking your money they’re going and investing it.

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