Banks Are Smart Businesses

Do not underestimate banks because they are smart businesses which will keep growing even when the world economy falls. If you really think that banks are not smart, then you need to stop opening a savings account. You don't need a Bank of America checking account if you think banks are dumb.

I think banks are smart businesses because they know how to make money by doing absolutely nothing. Through opening a savings account, you help banks which are part of the SWIFT network to increase their annual revenues. Basically, banks take the deposits you make into your savings account and invest them into financial instruments (stocks, futures). Now, when banks invest your money through a broad variety of investments, they end up reaping good profits but allocate small amounts to your savings account. I do not doubt that financial institutions are very smart businesses at all. Banks issue credit cards to consumers and then charge them high cash advance fees so that they can stay in business for years.