Banks Pay You NOTHING – Here’s Why


Save your money at Chase Bank, and they
will pay you 0.01%. Go over the Bank of America, and they’ll give you 0.03
percent. But, if you go to Wells Fargo, they will pay you 0.01 percent.
What the heck! What’s up everybody? I am Jaspreet Singh, and welcome to the
Minority Mindset. You’ve been smart with your money, you’ve been living below your
means, you’ve been saving a little bit of money, and you’ve been investing some of
your money, every time you get paid. oh yeah, oh. But if you look over at your bank
savings account statements, you might realize that your bank account is paying
you squat. Nada. Nothing. I know. Your savings are not there to make you
wealthy, but it would be nice if your savings didn’t have to just sit there
and do nothing, this way it’s not slowly being eaten away by inflation. I mean, is
that so much to ask from our banks that we give our life savings to? That’s why,
in this video, I’m gonna be going over why your bank account pays you nothing, and
how you can get a better return on your savings while keeping your money safe, so
make sure you watch this video until the end. But, before we get into that, make
sure you hit that thumbs up button below and subscribe to the Minority Mindset
YouTube channel, that way you don’t miss our new financial education videos, every
single weekend. Hit that little notifications bell too because if you
don’t, then YouTube doesn’t let you know when our new videos are released. First,
let’s start by understanding how the banking system works. I’m not gonna do a
full in-depth analysis in this video because I’ve already talked about this
before, so here’s a quick summary. You have $100 that you do not want to keep
under your mattress, so you go to your bank, this is you—let me draw you a nice
mustache—you go to your bank, and you deposit this $100 into your savings
account so you can keep your money safe. That’s when your bank will take your
$100, and they will give you a lollipop. So, here is your lollipop. But, your money
doesn’t just sit there in a vault somewhere. Your bank is gonna use your
money; they’re gonna use your 100 dollars to make the bank more money. Now, watch
this. Your bank is gonna take this $100 that you deposited, and they’re gonna
give some of it to Bunty here, this way he can go and buy things on his credit
card. They’re gonna loan some of it to Nancy, so she can go and buy a big house.
And they’re gonna loan some of it to George here, so he can go and finance his
dream car. Or they’re gonna give George that money, this way he can go and
finance his dream boat. Don’t be like George. So now, your bank is gonna make
something like 25 percent interest on this credit card they gave to Bunty if he
doesn’t make his payments on time. They’re gonna make something like 4
percent on Nancy with her mortgage, and they might make another—I don’t know—6
percent on this boat that they helped finance for George. Sure, your bank might
not lend out all $100 you deposit. They’ll save a couple of dollars in the vault
just for protection. But, the bank has a superpower called fractional reserve
lending which allows them to turn this $100, you deposited, into something like
$1,000 or $2,000—something between there— that way they can loan out your $100
again, and again, and again. This fractional reserve lending essentially
says, the banks have the power to print money out of thin air, and yes, it is
legal for banks, but it is illegal for you. If you try to do that, you would end
up in jail and no, I will not represent you as your attorney. That means, your
bank is gonna make somewhere between 4% and 25% in interest from this $100 that
you deposited into the bank, and the bank is gonna make that interest again,
and again, and again, from your money, and in exchange, as a thank you for making
the bank rich, your bank will pay you with a lollipop and almost nothing in
interest on your savings. Now, these low interest rates that you’re
getting are partially because two: Interest rates are historically low. The Federal
Reserve Bank, or the Fed for short, sets the benchmark for interest rates in
America. When the Fed increases interest rates, your payments on your mortgage, your
student loans, your car loans, go up. The bright side here is that the interest
rate on your savings account goes up too. When the Fed lowers interest rates then
the payments on your mortgage, your student loans, and your car payments, come down.
But that also means that the interest rate on your savings account comes down
so your bank will pay you less on your savings. After the 2008 crash, the
Fed cut interest rates drastically to stimulate the economy because they made
it easier and cheaper for people and businesses to borrow money. Interest
rates stayed close to zero for years, but then in 2015, once the economy started to
recover, the Federal Reserve started increasing interest rates again, and they
kept doing this through 2018, and then in 2019, the Federal Reserve took a u-turn,
and then they started cutting interest rates agai. To put it in perspective, in
the mid-1980s, a savings account would pay you something like 7% a year, but a
mortgage would cost you something like 12% in interest a year. In the mid-1990s,
a savings account would pay you something like 5% a year on your money,
but a mortgage would cost you something like 8% a year. And now here in 2020, a
traditional savings account will pay you less than 0.1% a year. That’s 0.1% in
interest a year. But a mortgage will cost you something like 4% a year. But, what I
want you to understand is that, right now, you don’t have to blindly accept these
super low interest rates on your savings account because three: Some banks are
getting with the times. Ever since Amazon came online and took
borders out of business in 2011, more and more businesses are starting to come
onto the internet because they’ve seen the power of the internet. I mean, the
internet is great because one, it is cheaper for businesses to operate, it is
more convenient for customers, and it allows businesses to access more customers.
Well, finally some banks are starting to see and do the same thing. Your traditional
brick-and-mortar banks have a lot of overhead. You have to pay for rent at
these really, really nice buildings, you have to pay for the salaries for their
tellers, and bankers have to sit there and wait for you to come in. You have to
pay for electricity to keep the lights on, and you have to pay for all the
lollipops. With these higher expenses come lower interest rates on your
savings. But, thanks to responsive CIT bank, you can move your money to an online
savings account, you can get a much better interest rate, and you can pay no
monthly maintenance fees. It is really easy to open an online savings account,
and it’s very quick; I know this because I bank
with CIT bank. Once you open a free high interest savings builder account,
you can transfer some of your savings there, and then you’ll start to get this
higher interest, and everything is super easy to track because they have a mobile
app, so you can see where your money is, and you can see how much interest you’re
earning every single month. Plus, your money is safe because cit bank is FDIC
insured. I mean, they’re a real Bank. The main difference is, they’re online so
they have less overhead, so they can pay you higher interest. That means your
savings can earn you more money. Conditions do apply, so if you want to
learn more and see how much more you can earn on your savings, I got the links to
where you can do that in the description below. Or you can just go to
CITbank.com/mindset. Minority Mindset is a partner with CIT Bank so if you use them,
we will get compensated, but there’s no additional cost to you. It’s free to open
account, and it’s free to save your money there, so if you wanna learn more, and you
want to see what their current interest rates are on their savings builder
accounts, I got the link to where you can so that in the description below.
And number four: Traditional banks don’t feel the need to pay you anything. Look,
let’s look at this practically. A lot of your traditional brick-and-mortar banks
have been in business for a long, long time. That means they have a lot of loyal
customers who have been with them for decades, and they like coming into the
bank and depositing their checks, and asking their banker all their financial
questions. Hey George, listen to me. Look, I think you should take out a home equity
line of credit, that way you can finance that boat you’d be dreaming about, and
we got a great promotion going on right now. So not only do they not want to pay
you anything, but they don’t feel the need to because George keeps coming in
to finance new boats. If you don’t believe me, just look at the numbers.
Between 2015 and 2018, interest rates didn’t go up one time or two times or
five times, they went up nine times, but the interest rate on your savings
account at most traditional banks didn’t budge. They stayed at nothing.
We’re living in a time where people are just used to getting nothing from their
savings account. I mean, it’s just normal for your bank not to give you anything.
Maybe this will change in the future as more and more people go to online banks,
but who knows? But until then, you don’t have to be stuck getting paid nothing.
Remember, I got the information to how you can get higher interest rate on
your savings in the description. Thank you for watching. If you enjoyed
this video, share it with one friend, that way you can help spread the word. I hope
you enjoyed learning more about why banks are paying you nothing, but if you
want to learn more about how the banking system actually works, I already broke
this down on YouTube, and you can watch it by clicking this button, right over
here. Thank you for watching, and as always, KEEP HUSTLIN’ *

100 Comments

  • Thank you for watching! If you enjoyed this video, you should watch – How The Banking System Is Making You Poorer: https://youtu.be/C7osfyLO23w

  • Wait, why is uncle Bunti borrowing money?

  • Gotta admit Jaspreet…you've got me hooked!!! MM has now become my drug of choice. Thanks and keep up the good work.

  • Well now they do not need any reserves so they do not need your currency (it is not money) they just print in to oblivion.

  • Lol I like you and your information

  • Is this CIT Bank FDIC insured? Also its APR is 1.75% which is nice

  • I got a free pen last time went to a bank. Sounds like you guys are all missing out

  • I've been using Vio bank. Before that I was using synchrony Bank high yield savings account. Both pay more. I use this account for my emergency savings

  • Compounded interest has kept the people poor since Babalonian times.

  • Who knew he would be able to manage uploading a video every single day

  • I took out every single dollar i had and pumped it in forex trading in 2017. i studied wave pattern from 2010 to now and (mathematical formula of the markets through Fibonacci)… I was told i am crazy to try and do 1 day to 2 months hold when trading. after the stock market started to consolidate in march of this year these same persons are running to me know and wondering how i am up 31% this year. I told them i don't invest, i aggressively maneuver the markets for opportunities. Most of my charts whether forex or stocks are charted from 2015 and i just use the smaller time frames for entry. I JUST SAYING, DONT TELL A MAN THAT SWING OR DAY TRADING CANNOT WORK, BECAUSE IT'S HASN'T WORK FOR YOU. This is just a general speech not bashing anyone. LEARN FOR YOURSELVES

  • Love your vidoes

  • Wills Fargo sucks believe me. I’ve been wanting to close my account for along time cause of that stupid 0.01 percent interest. I have over 10k in my savings and I saw that I got 0.01% interest . Like that a dam penny don’t makes no sense to me.

  • Interest Rate is 1.735% during the Introductory Period and 0.995% thereafter.

  • Its gotta be the turbin.

  • "Life is like a box of chocolates… You never know what you're gonna get."

    -Forrest Gump

  • "Float like a butterfly, sting like a bee"
    -Mohammed Ali

  • "I hope I can make it more than 42 seconds this time"
    -Glass Joe

  • "Attack me if you dare, I will crush you"
    -Ken

  • To get 1.75%, I need to have at least $25k in the bank… why save money in any bank that gives you less interest rate than inflation?

  • You open my eyes ???

  • Great Video! I hope your channel becomes super successful! ??????

  • Wow I wish I was American cos then I could get a higher interest than 0.3% (The Highest rate we can get in my country)

  • You might want to throw a high-pass filter onto the audio because the lapel scratching against your shirt is irritating

  • Put the money in a high-yield savings account!

  • right now my online bank pays 1.70%
    I'm just sitting here wondering if it will be decreased with the rates now at 0

  • My bank gave me 12.50 a month for $2500.00 just sitting around in it. Is that like 0.005%? I have CITbank, however, they take longer than Capital One to make transfers and payments like 3 days long.

  • American Express savings account online offers 2% returns. They're much more established than cit bank

  • Thanks for drawing my mustache.

  • If you don't like this type of practice and the current state of affairs WHY are you running Susan Collins re election ads?

  • My bank gives out jolly ranchers

  • The bank last I checked before the stock market crash was around 1-2%

  • For anyone who doesn't already utilize high-yield savings accounts, Capital One 360 and Marcus both currently offer accounts that offer over 1.5% and this is AFTER they've both gone and reduced their rates. Definitely the front runners for anyone looking for a place to hold some cash without risk.

  • I wish banks gave me half the interest rate on my savings that credit cards charge me…

  • Ally is still paying 1.5%, hopefully that doesn't go down any further, switched over from wealthfront when they went to less than 1%.

  • I never comment, but you are so entertaining and have provided so much education in these short videos. As a tan person I feel more informed then I would have ever before. As a hustler you encourage me to keep going and think differently then the people around me. Thank you!

  • I recommend +1(513)3860766

  • I recommend +1(513)3860766 I got $3000 into my zelle account thank you bro

  • This video should've been titled, "Since I still want my YouTube and other Sponsors Money coming in…"

  • Be ready to sell Monday when S&P 500 hits 2620

  • ? I really Wana meet Bunty ! Jaspreet if this is a real person you should have Bunty join you in your future videos.

  • I couldn't believe this until I I receive $5600 to my cash app I really appreciate this help so much contact him +1(51÷)3860766

  • Dammit George

  • I got my bills cleared up and I still got $4300 via zelle you are the best I'm going to tell my friends to come for you text him via WhatsApp +1(513)3860766

  • I always ask my self who's bunti ???

  • This was my short term solution to where I want to keep my money until an investment opportunity arrived (cough Coronavirus) we chose just a 12 month CD account for about 2/3 of our savings since we knew we wouldn't need it and it would be locked up for 12 months. That was the sweet spot. I wouldn't tie up my money longer but if you're not planning on buying a house and you have a safety cushion aside in a regular savings account I think it's a good way to go just for the meantime. Plus that account got us 2.7% but since then they've lowered rates. Our other account like Jaspreet is a high yield savings account 1.5% on Ally online bank. They're great also and last year according to a Google search we beat inflation with our CD account by about 1%, not life changing but still good. Cheers!

  • I will forever be grateful to you mr Robinson +1(513)3860766 for this great deal with you I never regret texting you u got $6780 to my cash app I'm so happy rn

  • I'm going to Walmart rn to go do shopping with my kids as we receive $8900 to my zelle account you are real bro thanks for this it really help +1(513)3860766

  • I'm not here to convince anyone but I'm also here to tell you that I got $7600 from this able man +1 513 386 0766 of God

  • Awwww thank you for saving my DAUGHTER'S life hacker Robinson you are really man of God Thanks you for this caring heart you are the best of all brother text him.+1(5133860766

  • Hey Jaspreet, How'd you know I have a mustache just like that??!! It's hard to ride a bike, or go though doors, but it's a great place to hang my laundry! ? Thanks, & keep up the great work!!

  • Nice mustache

  • There are fdic savings account that pay as high as 1.7-1.9% right now. Most of the time, I dont recommend saving over smart investing, due to inflation and better returns investing. At this current time of a pandemic, I’m not sure what to advise though. Gold and housing are often use as a safety net against hyper inflation during uncertain times, but theyre already priced high, and a wise man once said buy low. Whats wise to do now?

  • The Cit savings bank you provided is a minimum of $25000 this is not a minority amount sir!!!

  • Why am I not holding my lollipop? Also it's HUGE, best deal ever 😀

  • Thank you!!!

  • Interest is HYSTERICALLY low right now, but not on credit cards and student loans (!) Consider joining a credit union for lower rate credit cards and loans. Shop around for that credit union also; some starting charging fees and interest like banks.

  • Yeah, only issue is, their rate is not guaranteed. The only guarantee is that they will cut the rate the moment they meet their deposit goal. And they will make sure that transferring you money out is as painful as possible. Not stop you, but slow you down enough so you won't be able to use that money as down payment if you need to in any meaningful time.
    How do I know? Been there. So deposit at your own risk.

  • great video however the only site that worked for me is simply Google E a s y L a p t o p L i f e .c o m

  • We will bail out the banks by next yr as well. More corporations will do buybacks. Sooo much corruption!!!

  • savings account replacement – high cash valued whole life insurance policy with minimal death benefit from a mutual life insurance company ( a policy optimized for IBC). typically 4% guaranteed returns year of year on your cash value. You can borrow against it ( in a similar way to a 401k) creating an unstructured loan and you never have to interrupt the compounding effect the cash value has over time. Its also relatively immune to collections, legal judgement and no taxation on gains. You're welcome.

  • I'm starting a new business…a bank. Who's with me?

  • No one has money saved I swear so no one cares what the bank pays….

  • Just for a point of reference in the last two months my higher yield savings account dropped from 1.85% to 0.2%. Still much better than 0.01% though.

  • It's sad, I took 2 economic classes in college, 1 in high school. But I've learned more from you……. On Youtube.

  • Nordax bank gives you 2.3% Here in Norway and Sweden…..But the inflation is 2.5% if not more………

  • Doesn't seem fair…what's up with that crap??!

  • Nice turban today!

  • 1:45 nice mustache hahahahaha according to who Jaspreet?

  • When the Fed increases rates, loan and mortgage interest rates go up but savings interest rates increase negligible. When the Fed reduces interest rates, loan and mortgage interest rates take several months to reduce marginally, and savings interest rates return to the miserable levels they were at before.

    Damn I want to be a bank!

  • When money printing is way too slow they bring out QE

  • Most businesses don’t die due to cashflow, they die due to debt. The fact they get into too much debt and can’t service it causes the cashflow issues.

  • I ended up closing my Capital 1 online savings because of the garbage interest rate it had (5x the national average?? gimme a break!!). Moved over to a CIT Money Market acct and its making 1.78% as of right now. Not like its making a ton of money but its a hell of a lot better than what I had before.

  • yall should put your money in a south african bank you can get up to 10% on your money if its a fixed savings and between 5-7% in a flexi savings… america is a scam

  • if only the bank would give a lollypop, they're closed right now self quarantine smh

  • So basically interest rates would have to be 70% in order to have banks offer 0.1% savings rates instead of 0.01%, no thank you

  • A whiteboard!!!! Thank you Jaspreet!

  • Great video as always! Stay well. ?

  • Say "no thanks" to the bank lollipop. It looks like a giant penis. ?

  • If you don’t get an interest greater than the inflation percent, you will loose money no matter where you park it! Reason for that, so you dont park your money, and put it in the stock market, since they advertise a 8-12% return. Banks and wall street AKA pitcher- catcher!

  • God knows how expensive lollipops are!

  • Okay, so this video is basically a commercial for your sponsor. I won’t be switching banks. Currently getting 1.75% APY at Live Oak Bank (online). Before this cv disaster it was 2.45%, much better than the behemoth banks. I linked it to my checking account at my bank so I can make electronic transfers at will. At least it’s liquid.

  • wow my banks owe me so many lollipops now…. I never got a single lollipop so far….. 🙁
    PS .: I use an American Express savings account that gives me 1.7% ….

  • Most banks savings accounts are trash.

  • Hi Jasspreet, can you have your savings in this bank if you are from Canada?

  • For those who get the lollipop that means – )))!!! YOU SUCKER!!!(((

  • I use an online savings account. Vio Bank. They give me 1.85% APY. Way better than CIT bank

  • Investing in a money market account in South Africa, I get between 7% & 7.4% interested earned tax-free with limitations.

  • I can’t wait to see how this housing market is going to look. In some places foreclosures will go for pennies on the dollar, not great circumstances for some, I know, but will be great for the investor.

  • I've been binge watching your videos instead of watching the news. Thanks for your and your team's rapid and regular updates! And newsletters.

  • Or you can buy an etf of diversified bonds in the stock market where u can get a very safe dividend yield of over 3% 🙂

  • I love your videos!
    What do you think of Credit Karma's savings account program?

  • Thank you for making great informative videos. i was wondering if i can be in multiple investing apps, for say M1 Finance and Robinhood ?

  • 1.75% is what most high yield savings accounts are offering.

  • Never put yo money in the bank people

  • my savings account pays me 8% you just dont know the secret yet

  • Thank you for the email, Jaspreet. A lot of newsletters that I'm subscribed to have not sent anything out during this time. I use newsletters as one of my main sources of news. That consistency is valuable

  • So, basically this was a commercial for CIT bank… I’m not mad at you though. Good info. I bank with Ally and Chase. And I’m going to look into CIT.

  • Serious question. What effect will this disaster have on renters? What protections will there be for renters during this time?

  • Chase I can’t get mad at y’all! It my fault that I let this bs happen. You moving yola on ships, then 0.0001%, QE Transaction, dumb fees . Oh quote by Bernie Mac “The sucker get lick like a lollipop.”

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