This content is sponsored by The Oxford Club, penned by Chief Income Strategist, Marc Lichtenfeld.
For many years, the largest banks in the United States have been engaging in a financial strategy with your money.
And they’re coming out on top.
Institutions like BlackRock, Wells Fargo, J.P. Morgan, and Bank of America…
While these banks offer a paltry 0.4% interest on your savings accounts, they are quietly investing billions elsewhere, reaping substantial returns.
Allow me to put things in perspective.
At 0.4%, it takes well over a century to double your money.
But the big banks are doubling their money in just a few years… with your deposits.
That’s not just a difference. That’s a scam.
Here’s the “back of the napkin” math that should make your blood boil…
You deposit $10,000 in your savings account. Your bank pays you 0.4 percent – that’s $40 a year.
Meanwhile, they can turn around and invest your money in opportunities that earn them thousands of dollars.
They keep the profits. You get $40.
But there’s more to the story.
The average money market account pays less than 0.6 percent. The average one-year certificate of deposit will earn you a whopping 1.6 percent. However, inflation is currently running at 2.7 percent.
Your buying power is shrinking every single day… while the banks get richer off your hard-earned savings.
So what can savers do?
For one, you can buy some T-bills. Currently, 3- and 6-month bills are paying slightly more than 3.5 percent. But when the bills mature, you may have to reinvest at a lower rate if rates go down (as President Trump is pushing for).
Those who can take on a little more risk can buy quality dividend growth stocks. That way, they can get paid at least as much as T-bills, but with the very high chance that those payments will increase every year, which will actually grow your buying power.
Lastly, there’s an investment that I love right now that has generated an average annual return of 29 percent for the last 25 years.
It’s a conservative way to play the AI boom without investing in ultra-volatile stocks, unproven technologies, or any of the companies that have all that circular financing (where one invests in the other, which buys chips from the third, which owns a significant portion of the first).
None of that nonsense.
Just a company with a tremendous track record that was doing business decades before AI entered the mainstream.
