Eager to learn how to generate more income with your bank account?
You aren’t alone. Big banks are royally screwing over millions of Americans.
In fact, the five biggest banks – Bank of America (NYSE: BAC), Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM), U.S. Bancorp (NYSE: USB) and Wells Fargo (NYSE: WFC) – pay an average annual percentage yield (APY) of 0.4%.
That’s four-tenths of 1%!
On a $100,000 deposit, that’s just $400 in interest per year.
The national average APY is actually a bit lower – a measly 0.37%. At that rate, it would take 27 years for $10,000 to grow to $11,000. That’s a paltry 10% increase in value after nearly three decades.
In other words, at that rate your savings are rapidly losing value since that’s nowhere close to keeping pace with inflation.
An analysis by The Wall Street Journal showed that, since 2014, Americans have lost out on $603 BILLION simply by keeping their money in one of these pathetic savings accounts.
The Seven-Minute Move
My co-worker Dave was stuck in a Bank of America Gold Tier savings account. His account paid only 0.02% per year.
His money was just sitting in the bank! So Dave was essentially earning nothing.
He approached me about it because he knew he needed to make a switch. He just hadn’t done it yet because he liked having all his money in one place, sitting in his bank.
But when he finally made the leap, he was amazed at how easy it was…
After being online for just seven minutes, he had his money in a new account, producing hundreds of dollars in income. So what did Dave do exactly?
He switched his checking and savings accounts – allowing him to get paid more income on the money he has tucked away in a rainy day fund.
And you can easily make this seven-minute move as well…
Where Can I Put My Money to Earn the Most Interest?
Dave put his money into a high-yielding savings account with LendingClub, and now he’s earning an APY of 4.25% on his entire balance… 213 times more income than he was getting from Bank of America.
LendingClub is part of the growing fintech industry. Fintech is short for financial technology and is used to describe new technology that seeks to improve and automate the delivery and use of financial services.
Most fintech companies operate virtually… without brick-and-mortar operations. This provides a huge cost-saving advantage, which the fintech can pass to customers in the form of better rates, more services and quicker response times.
LendingClub started out primarily as a peer-to-peer lending site but has since shifted its focus to personal banking with FDIC-insured checking and savings accounts.
Dave chose LendingClub, but he had plenty of options available. And so do you.
Tips on How to Make Money With Your Bank Account
Besides LendingClub, there are plenty of other options to upgrade your savings account.
Here’s a list of the top-yielding savings accounts right now (as of May 10).
- CIT Bank: 4.85%
- Laurel Road: 4.80%
- Bask Bank: 4.75%
- Citizens: 4.50%
- My Banking Direct: 4.38%
I urge you… if you have low-interest savings or checking accounts with one of the big banks, PLEASE move your money out of that account and into something better.
And here’s what I love about LendingClub and similarly minded institutions…
They proactively increase your rates.
With the big banks, you have to beg to get a higher rate.
Now that he’s joined LendingClub, Dave automatically gets increases in his rates without ever asking. He recently got a simple email notifying him that his income just went up!
Listen… making changes can be tough. But when you think about it… WE’RE the problem. We allow the big banks to get away with robbing us blind and never raising our rates.
Trust me, they haven’t hesitated to jack up their rates on mortgages to 7%… or on credit cards to more than 20%. They did that the first chance they got.
Yet big banks continue to hope nobody notices that they haven’t raised their payouts on our savings.
I guarantee it’ll be easier than you think. You’ll have hundreds or thousands more dollars in your account, and you’ll wish you had made the move sooner.
If you’re ready to make the switch, find all of the details here.
Note: This is a sample of what you can expect from my Safe Money Income Secrets book.
Want to learn other simple tips and tricks like this that could help you generate more income?