Have you ever wondered what happens to your money when you deposit it in a bank? You might think it’s safe and secure, but secrets are lurking behind the walls of these financial institutions that most people don’t know about.

Billionaire Henry Ford once said it’s good that only a few people know how the banking system works because that would lead to a revolution. And the lack of financial education indeed is one of the reasons for the significant wealth disparity in the world.

But don’t worry; in this video, I’ll be sharing with you the secrets of banks that only the rich and powerful know. You’ll learn how banks make money off of you and what you can do to prevent greedy bankers from taking advantage of your hard-earned cash. So sit tight and get ready to have your mind blown by the secrets of banks you’ve never heard of before. By the end of this video, you’ll have the knowledge and tools to take control of your finances and become financially empowered. Let’s get started!

Let’s take a trip back in time to the seventh century BC when the city of Babylon had its first bankers who lent money at interest. That’s right; banking has been around for centuries! The first banknotes appeared during this time and were worth the same as gold. Fast forward a few centuries to Italy, where the word “bank” comes from the Italian word “bonko,” which means pebble. Banks initially dealt with exchanging large sums of money into smaller denominations, but as economies developed, banks expanded their services to include a broader range of financial operations. Did you know that the first private official bank in the world was a cartel of private users from Genoa? The partnership of St. George in the 12th century provided the first large credit to authorities of Genoa Republic for the war in 1148. In turn, the authorities authorized the partnership to collect some taxes from citizens to write off their saved-up debts. By 1407, the Bank of St. George was officially formed and marked a shift in people’s attitudes towards the banking system.

Back then, people had a dual attitude toward banks. On the one hand, they were seen as a solid and conventional financial tool. But on the other hand, bankers were considered greedy or cunning swindlers, and moneylenders were deprived of communion and typical Christian burial. While opinions may have shifted slightly over the years, some of the principles of the banking system still cause distrust. But what really goes on behind the scenes of your bank? You might be surprised to learn that there are secrets that even your bank keeps hidden from you. 

“Banks are not in the business of storing money.”

Have you ever heard the phrase “make your money work for you”? Well, banks have certainly taken that to heart. They advertise deposits as a safe and easy way to make some passive income, but the truth is, in many countries, it’s just not worth it. Let me explain why. For instance, let’s say you deposit some money into a Swiss bank. Sounds fancy, right? But here’s the catch: the interest rate on that deposit is only 0.5 to 1.5%, while the average inflation rate is 1.5 to 2%. So, not only are you not making any money, but you’re losing money because the value of your deposit is decreasing over time due to inflation. Sneaky, right? But here’s the kicker: banks benefit from keeping your money, even if they’re not paying you much interest. They lend your money to other clients at a higher interest rate, making a profit on the difference. And the government? Well, they’re in on it too. By manipulating interest rates, they can encourage people to spend or save, which affects the overall economy.

So, what can you do to protect your wealth? Of course, the super-rich has ways, but for the average person, it’s about being smart with your investments and researching. Don’t just trust what the banks tell you – dig deeper and discover what’s happening. After all, it’s your money we’re talking about here.

“The main clientele of banks are banks themselves.”

Banks exist to serve themselves. Serving other customers is secondary. Picture this: you walk into a bank, deposit your hard-earned money, and feel one step closer to financial stability. But here’s the harsh truth: once you hand over that money, it’s no longer solely yours. In fact, it becomes the bank’s asset. That’s right, you heard me correctly – the bank’s asset. And the worst part? Banks always prioritize their own interests above yours. They’re like that one friend who only calls when they need something but disappears when you need them. Banks will never fight for your money as fiercely as they fight for their own interests. They’ll use your money to make themselves more prosperous, and the sad reality is that the more money they have on deposit, the more credit they can offer to others at higher interest rates. So, banks are always in a win-win position, making money off both sides of the transaction. It’s like they have their cake and eat it too! 

“Banks don’t give money to people who look poor.”

Bankers are like fashion police. Yes, you heard me right. They’re the most fashion-forward people in the world, and they judge your appearance too. So, if you want to borrow money from them, you better dress to impress. If you look like you need the money, forget about getting it. But if you look like you don’t need it at all, well, let’s just say you’re in luck. But wait, there’s a catch! If you don’t have a bank account, then the staff will judge you solely on your appearance to decide if you’re worth the risk of giving a loan. It might seem unfair, but hey, it’s the way things work in the banking world. So, the next time you visit a bank, dress to impress because your appearance might determine your financial fate.

“The more loans a banker approves, the larger their annual bonus will be.”

Of course, the bonus does not go to all employees but only to those responsible for issuing loans. As a rule, they are managers, which is not bad. However, the bonus depends on the loans. Of course, they should not be unreliable. Everyone at the bank wants an extra payout at the end of the year, so they may be more willing to approve applications closer to that time. More often than not, this happens unknowingly. At the beginning of the year, the manager feels no pressure to approve loans, but toward the end of the year, there is a fear of losing the bonus by not approving enough applications. In addition, no one wants to be labeled as incompetent. Thus, the bank employee will miss out on the yearly bonus if the customer doesn’t get the money. This is how rich people use it. They come to the bank to get the maximum possible amount because they have the necessary collateral and credibility. 

“Banks make money on you and your name.”

Banks are like treasure troves, but instead of gold and silver, they have a treasure trove of client data that they can use to their advantage. And boy, do they use it! They turn this data into new offers to entice you into spending more money with them, increasing their profits. Sneaky, right? But it gets worse. Some banks secretly sell your information to other financial institutions or scammers! It’s a scary thought, but it all depends on how trustworthy the bank employees are. And let’s remember those sneaky commission fees charged on your credit cards. Banks often offer you a fancy “status” card for a fee or charge you a “shadow tax” without you even realizing it. So you end up paying extra for using your credit card without knowing it! It’s like a secret tax that you never agreed to pay. The seller inflates the price of the goods, and you end up footing the bill. 

“Better terms for the rich.”

Banks aren’t just in it for the warm and fuzzies but for the cold hard cash. They’ve got shareholders to answer to, so they need to ensure they’re making a profit. And let’s face it, it’s easier to make money lending to someone who’s already loaded. That’s because if Mr. or Mrs. Moneybags can’t repay their loan, they can always sell off a piece of their business to cover their debts. Plus, if the bank ever goes belly-up, they want to ensure they can count on getting a loan from a rich person to keep things afloat. It’s just business.

As we’ve seen today, banks have their own ways of making money, but managing your finances properly is essential. You don’t have to give up working with banks completely, but it’s worth thinking about some aspects of managing your finances. For example, investing your money or investing in a business is better than making a deposit. And instead of using your credit card, it’s sometimes better to pay in cash so as not to become a victim of shadow tax. Don’t let the system fool you, as it’s the only way to get rich. It’s essential to be aware of how the financial system works and make smart choices with your money.

Now, I want to hear from you. What are some strategies you use to manage your finances effectively? Share your thoughts and ideas in the comments section below, and let’s engage in a meaningful discussion. Remember to subscribe to our channel for more interesting financial content. Our goal is to help you achieve financial success, and we have many exciting topics coming up that you will want to take advantage of. Thanks for watching, and we’ll see you in the next video!