Is your bank or banker your friend?

While many people have been led to believe that their bank is their friend, this could not be further from the truth.

When you go to your local bank and open up a checking account, you are actually doing your bank a huge favor and they should be your friend!

But the banks have most everyone deceived into thinking that the bank is providing a valuable service to them for a small monthly fee. Many banks now offer free checking accounts. But it is a matter of fact that when you go to your local bank and open a checking account that what you are doing is creating a business relationship between you and the bank by creating a demand deposit account.

Now this is where most people miss the boat. They actually think the bank is doing them a favor! The truth is that the bank is there to make money off you.

When you make a deposit into your bank account, GAP demands that the bank record your deposit in their books as a liability to you! What this means is that you have in fact LOANED the bank money, often for free.

If you maintain a checking account at your bank and only have one account and use it exclusively as your only bank/account, and over the course of a year you earn $50,000 which you deposit into the bank, what you have done is loaned the bank 50K. The bank then pays your drafts (checks) drawn on your account. Let's say for instance you make a math error while "balancing your checkbook". And as a result you believe you have more money in the bank than you really do. You then write another check, which, when it is presented exceeds your total funds on deposit. Normally the bank will loan you a reasonable amount (not normally over $500) and pay your check.

However this is where it gets shady and even deceptive. The bank now has loaned you money! So they charge you a loan fee normally they call it something misleading like insufficient funds (NSF) or they say your check bounced or should have bounced or you are overdrawn. Why can't they tell you the truth and say we jacked you for a $35 loan fee because you had insufficient funds when your check was presented. Honestly you made a math error and didn't deliberately overdraw your account. But they could care less, they are there to separate you from as much of YOUR money as they can. This NSF fee is 100% profit. The problem here is you made an honest mistake and they have no trouble kicking you when you are down by further loaning you money to pay them their fee, leaving your account overdrawn even more!

Here is where the problem starts, you have loaned them $50,000 faithfully and exclusively over some period of time. You never charged them a per transaction "fee" every time you loaned them money. Why do you they think that because you made an error they can take advantage of you?

So see the inequality here? It should be blatantly obvious!

I loaned you 50,000 over one year, didn't charge you any fees every time I made a deposit (loaned you money), but I make an error once and you had to loan me 50 cents and you have the nerve to charge me a $35 fee?

The bank is not your friend and they are there to separate as many people from their money as they can manage. And even if they don't get you for any fees, or monthly service charges, or other hidden fees, you are still loaning them money for free! If they pay you some chump change for interest, be assured that they will take your money pay you say 1% if that and turn around and loan your money to the next guy and charge him 7% for using your money.

And to take it a step further this would be honest banking, where the bank loans out money to customers from the deposits that they receive from other customers. But generally it doesn't go this way. The bank deposits your money at their bank (often the corrupt Federal Reserve bank {which isn't any more federal than federal express}) AKA FRB. And the FRB now takes your money from your bank and holds it in your banks account at the FRB. The FRB of course realizes that their depositors are to be treated VERY well as they are important customers (too bad your bank doesn't think of you in the same way) and the FRB then gives your bank 9 or 10 times credit for your deposit! So you put in 50K in your bank, they put that in the FRB and the FRB credits them for 450,000 to 500,000! Then you bank uses this money to loan to customers! You want to talk further about the fraudsters?