Should You Trust Your Bank? 43% of Americans Don’t. Here’s Why.

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Top Tier Gear USA


If you read between the lines on a recent report from American Express, it looks like more Americans are veering away from the traditional bank savings accounts:

A majority of consumers say they’ll keep their savings at a local bank (57% vs. 55% in 2014) but more than half of those who keep their savings in cash plan to hide bills in a secret location at home (53%).

This means that 43% of the people who are saving money are not putting it in the bank. This is good news for those of us who wish people would wake up and see the net being cast around them, but bad news for the banks that depend on deposit accounts to be able to give out loans and earn interest.

Most folks have been trained to keep their savings in the bank. It’s just the way things have been for over 100 years. But there are a lot of reasons why that is no longer a good idea. For one, deposit accounts are no longer legally protected. As well, the Federal Reserve passed a policy that in the event of an economic crisis (think “bank run) that accounts can be frozen to preserve the liquidity of the banks.

In a recent interview, alternative asset manager Eric Sprott explains why stashing fiat currency in a bank is a bad idea:

In my mind the biggest reason to own precious metals is because of the risks in the banking system… you get nothing for putting your money in the bank… and yet when you have your money in the bank you take on all the risks of a leveraged bank… and I’ve always thought it’s the risks in the banking system that would cause people to go to gold…

And now you have another level of concern out there and that is, of course, the currency risk. We’ve seen so many currencies that have been incredibly weak… (Source: SHTFplan)

Of course, the government has several reasons they’d like everyone to stash their money in a bank account:

1.) Ease of confiscation

We need only to look at the horrible situation a couple of years ago in Cyprus to see how bank accounts are like all-you-can-steal-buffets for the powers that be. A suggested theft TAX of up to 20% of the money in Cypriot bank accounts may be levied in order for the country to meet its staggering debts in the terms of the proposed EU bailout. The banks of Cyprus were loaded with the money of residents and businesses of other countries that have used them as a tax haven. The banks were closed for several days and frantic customers were left to withdraw the maximum daily balances from ATM machines in an attempt to salvage what they could.

Think it can’t happen here? I wonder if the people of Iceland, Greece, Ireland, Hungary, Argentina, Spain, and Portugal thought that too.

2.) Surveillance

The second reason that “everyone should have access to banking services” is the digital trail that it leaves. Every dime you receive and spend out of these accounts is part of an intricate system of surveillance. When your money goes into a bank – any bank – Big Brother knows about it. It’s a simple matter of compiling information via your social security number (or other federally- assigned number) to find out how much you make, how much you have, and where it comes from. This can be used to prosecute you for tax purposes, to locate you through where your pay comes from, and to follow your personal money trail for a variety of different reasons.

It can also be used to track your spending – Big Brother can find out that you spent $2000 at a gun store, that you purchased online from a prepper supply website, or that you bought some books with “questionable” content in order to paint you as a threat.

3.) Revenue Generation

In 2013, US banks generated a stunning $31.9 billion in overdraft fees. That’s right. They took billions of dollars from people who were clearly financially struggling or they wouldn’t have bounced payments in the first place. This number doesn’t even touch upon the fees you pay to stand in line and use a human teller instead of an ATM, the fees you pay for the privilege of having the bank hold on to your money, or the fees you pay per transaction in many accounts.

If you don’t use a bank, where should you stash your cash?

For most of us, banking is a necessary evil. Our paychecks are directly deposited. We pay our bills online. Our mortgage payments are automatically debited. My recommendation is not to leave in any more money than is required to meet these expenses. I personally withdraw everything beyond the bills coming out between pay periods.

For the reasons mentioned above, safety deposit boxes are also not a place you want to keep your savings. If the banks doors are locked, your precious metals and cash are locked in too, and you will have no access until the bank reopens. In the event of a disaster, that might be a very long time, if ever.

This doesn’t mean to stuff your mattress with bills or to put the money in an assortment of shoeboxes under the bed. Consider investing in one or more fireproof safes. Be creative about where you hide them, and when you’ve selected a spot, bolt them into the floor. You can get a couple of smaller, less expensive safes and fill them with minimal amounts of money and costume jewelry to serve as decoys. Some people bury PMs in a cache, but if you do this, be very careful to map it out in a way that you’ll be able to find it.

You can also invest in tangible goods like food, firearms, preparedness supplies, property investments, and precious metals. Gold and silver retain their value far better than the dollar, and the metals are easily liquidated if an emergency arises and it becomes necessary to change them to fiat currency. This being said, metals are harder to spend, and it takes a little bit of effort to cash them in, so it can help deter you from spending unwisely if you tend to have difficulty saving money.

Remember: If you don’t hold it, you don’t own it.

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Contributed by Daisy Luther of The Organic Prepper.

Daisy Luther is a freelance writer and editor who lives in a small village in the Pacific Northwestern area of the United States.  She is the author of The Pantry Primer: How to Build a One Year Food Supply in Three Months. On her website, The Organic Prepper, Daisy writes about healthy prepping, homesteading adventures, and the pursuit of liberty and food freedom.  Daisy is a co-founder of the website Nutritional Anarchy, which focuses on resistance through food self-sufficiency. Daisy’s articles are widely republished throughout alternative media. You can follow her on Facebook, Pinterest,  and Twitter, and you can email her at

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  • “but bad news for the banks that depend on deposit accounts to be able to give out loans and earn interest. ”

    Banks are forbidden to do such in USA INC at least, they create money out of thin air with your signature, right?

  • robbie41

    Don’t forget about the new bank bail-in rules..

    I believe a great shaking is going to come to this land, (Our Country) and to the world that will involve the collapsing of the American financial or economic relms. … and the removal of its blessings and prosperity.

    If you remember the Mystery of the Shemitah by New York Times best-selling author Rabbi Jonathan Cahn, has stated. The last day of the Shemitah, Elul 29, Sept 13, 2015 is considered the “wipeout day” when all debts & credit were “wiped clean.” So I’m just looking at this as a caution, to keep your money out of the bank’s, & please start to Stock-up on Food, Water, & Medical supplies, for a minimum of 4 months time.. I wish the best of luck for everyone..If you are prepared, you shall not fear..

  • TraditionalNaturopath

    Sounds good. How long have you been with Lending club?

  • But they still trust them more than their mattress.

  • If you want to save value, you’ll have to exchange your “money” for real money, gold and silver. If it is composed of paper, it can disappear in a computer.

  • If they have an Internet presence, you don’t know, or want to keep secret, their URL?

  • Dr NoNo

    Sounds like a lending club sales pitch.
    There are risks because borrowers DO default, and the club could care less because they don’t cover you.
    I am not saying that you cannot earn money there, but forget “you’re going to be a millionaire” crap. .

    “Investing in Lending Club Notes involves risks, including the risk borrowers will not repay their loans and the risk of Lending Club discontinuing the servicing of the loans. Lending Club’s obligation to
    make any payment on a Note is wholly dependent upon a borrower paying Lending Club on the corresponding loan in which you invested. The risks of investing mean that investors may lose all or most of their investment. Before
    purchasing any of our Notes, you should carefully read our Prospectus…”

    Your fantasy scenario of collecting 15% return means that you take on the lowest grade borrower, the ones that barely qualify, and the ones with the highest default rate.

    The statistics that the club uses are a convoluted numbers game as seen in this report…

    The MOST IMPORTANT major factor is that your money, just like in a bank, is not available immediately, should you want it, in fact, it is easier to get it from your local bank-in minutes, and in the “SHTF” scenario, (that’s what this article is about) you are screwed more so because your money is now in the hands of strangers who certainly are not going pay you and the other 30 lenders back as everyone tries to divest.

    Having said that, I think that it is great deal for the borrower to avoid the banks and get a better rate.

    Having used both Prosper and Lending club in the past, I am now only lending through micro-finance outfits which earns me 0 interest but I am intimately involved in the lives of small business owners world-wide and the satisfaction of helping those downtrodden flourish is priceless.

    I will stick to the time-proven strategies from the author of this article…tangible goods. Put your cash in what the author suggests, your assets will be instantly available.

  • Dr NoNo

    You’re confused. The question is, will your assets be available should the “SHTF”
    If your $$$ is in a club like this when or if the SHTF, you can kiss your $$$ goodbye. Maybe that scares you. Even worse than a bank for reasons I pointed out above. You’re thinking “how to become a millionaire by playing banker” I’m thinking “how to survive in a what-if scenario.”
    That’s the bottom line.
    I am not saying you are wrong, I am saying our priorities differ.
    I like most, will stick to liquid assets within arms reach.
    And I agree, to each their own!

  • Dr NoNo

    OK, didn’t mean to jump on you. If you are pulling in 15% then I admire that because you are in the top of the very few club lenders that can do that, I must be jealous because I had too many defaults and ended up discouraged, even though I made a little and it was fun for awhile.. Just like day-trading, there are a very few that master that game without giving it all back, so congratulations.

    My experience of being wealthy has shown me that no matter how much money one has, it is never enough, it is human nature, $10,000 or 10,000.000, it’s never enough, we want more. Secondly, having material wealth can amplify the contrast between material wealth and spiritual emptiness/unhappiness. I was happiest in my life when I was poor, life was simpler.
    Otherwise, I know nothing. If not for the ego, what are we?

  • Anna5577

    Thank you for the article but I am not surprised. I don’t save my money in bank because I don`t trust banks any more! After crisis in 2008 I lost my money and my work. It was very hard time for me. I had mortgage and had to make a payment every month. Till I found my new job I took out loans to pay my bills. Yes, it was risky to get in debt burden but I stayed afloat. So, keep in mind that quick loans can help you out.