So as we know, banks are businesses and they need to make a profit. Anything that they offer you is taking away from what they could potentially give you as interest. Banking used to be a way where they said, “Okay, if you would put money with us, we will give you some type of interest.” And gradually as interest rates fell, it became a place where they say, “Put money with us and we’re going to charge you fees and not give you any interest,” which is crazy. The reason we got here is this: banks have overhead and they still need to make a profit. We’ve gotten to a point where, as Americans, we think, “Okay, well we need a bank,” and most of us do. So what’s another way to bank that’s going to cost us less?

Over the past 10 to 15 years, online banks have started popping up and what they do is they cut out those brick and mortar locations. Is it not that big of a deal for you to walk in, talk to a teller, get a lollipop, and go through a drive-thru? Cause if it makes no difference and you’re okay doing everything online and through ATMs, you can actually go with purely online banks who will give you a very good interest rate even on checking accounts. Right now there are banks that will give you introductory rates on checking accounts over 1%, compared to other banks that give you nothing and charge you fees. If you don’t use those conveniences of a brick and mortar bank, consider switching over to an online bank. You can check the rates online, just Google current bank rates. If you’re looking for a checking or a savings account, you can Google checking interest rates or savings interest rates.

Now I’m not saying that brick and mortar banks are bad. I personally bank at a brick and mortar bank because we also have business banking and it’s important for us to have a relationship there. But if banking isn’t that big of a part of your life, you might want to consider switching over and start earning some interest in the money you have saved with them.

Securities and advisory services offered through Madison Avenue Securities, LLC, member FINRA SIPC, and a registered investment advisor. Madison Avenue Securities, and Don Anders are not affiliated companies.