Bank Spreads

Bank Spreads

BULLET POINTS

  • Banks make money off of fees, availability interest, and the savings spread.
  • Banks pay you 2% for your savings and charge 5% when they loan it out. It gets worse.
  • Banks can loan out $33,000 for every $1,000 you save, a 33:1 spread!
  • Banks get a 33:1 spread PLUS they charge double to borrowers what they pay to savers.
  • Banks get a 66:1 spread from savings in total. For what? That’s the real question.
  • What allows banks to loan more than they have is our taxes the Fed uses as collateral.
  • Banks keep the interest your money makes while waiting to become “AVAILABLE”.
  • In the era of high-speed trading, how long can it take for a check to clear?
  • The Valentine Constitution public utility bank eliminates the 2 “spreads”.
  • The Valentine Constitution bank charges no fees just our only tax of 5% transaction.
  • The Valentine Constitution online only bank gives savers a fair interest rate, insures all savings, and passes on to savers all the money we save on branches and spreads.