Banks benefit from “the float” – holding onto your money for a period before transactions clear. This provides banks with interest-free short-term funding.
Banks spend millions lobbying politicians to influence financial regulations in their favor, sometimes at the expense of protecting consumers.
Many banks charge fees for services you might assume are free, like account maintenance, paper statements, or even teller interactions.
The interest rate on your savings account is often much lower than the rate of inflation, meaning your money loses value over time.
While they give minimal interest on your savings, they charge significantly higher rates on loans and credit cards.
Some banks offer promotional interest rates that look appealing but jump significantly after the promotional period ends.
While it sounds helpful, this service often comes with hefty fees each time it’s used.
Some banks reorder your transactions from highest to lowest, not chronologically, to increase the chances of an overdraft.