Outline:
This article follows rigorous editorial guidelines. Certain links may be sponsored.
Are average American investors being taken advantage of? Real estate developer Grant Cardone thinks they are.
On a podcast last year, Cardone stated, “Financial literacy isn’t the problem in this country. The real issue is financial indoctrination. We’ve been taught to benefit banks.”
You receive money, you work hard and then you hand it over to an organization and forget it’s there,” he said in a previous interview with podcast host Lewis Howes. “Wells Fargo isn’t giving you anything, Bank of America isn’t giving you anything. When you send it to Chase, they aren’t paying you anything either.
But is Grant CardoneRight? Is there proof that a significant number of Americans are receiving an unfavorable outcome regarding their bank accounts?
Must Read
- Thanks to Jeff Bezos, you are now able tobecome a property owner with a minimum investment of $100— and no, you don’t need to handle tenants or repair refrigerators. Here’s how
- Dave Ramsey cautions that almost 50% of Americans are committing one major error with their Social Security —here’s what it is and 3 easy steps to resolve it right away
- Secure early opportunities to invest in private AI companies through Fundrise Venture Capital, starting with as little as $10.Join 350,000+ investors today
Are investors being disadvantaged?
The interest rate for deposits at large banks is almost 0%. Wells Fargo, Chase, and Bank of America provide starting rates of 0.01% on these accounts.
With the Federal Reserve’s key interest rates ranging from 3.75% to 4.00%, it seems that bank savings rates are not very appealing.
The average savings rate across the country is only 4.6% as of August 2025, whereas the inflation rate remains at 3.0%. Regardless of perspective, it appears that the purchasing power of your money is decreasing over time.
A study involving 8.3 million Chase customers conducted by JP Morgan revealed that the average cash balance in checking accounts was approximately $6,600, varying based on income level, as of February 2024. This represents a significant amount of money that isn’t generating much interest.
It’s important to note that these checking accounts are not intended for growing wealth. Typically, account holders use the funds for everyday expenses and immediate needs, like rent and bills.
To begin with, a high-yield account, such as aWealthfront Cash Account, can serve as an excellent option for building your emergency savings, providing favorable interest rates along with convenient access to your money when required.
A Wealthfront Cash Account offers a base variable APY of 3.25%, with new customers receiving an additional 0.65% during their initial three months.a cumulative APY of 3.90%supported by the program’s reliance on your unused cash. This is eight times the national deposit savings rate, as reported by the FDIC in December.
No minimum balances or account fees, along with 24/7 access to withdrawals and free domestic wire transfers, allow you to keep your money available whenever you need it. Additionally, the Wealthfront Cash Accountup to $8 million in balances are protected by insurancethrough FDIC-approved banks.
Nevertheless, Cardone contended that individuals are either oblivious to more favorable rates or hesitant to search for them. “People are unaware, they don’t realize where their money is going,” he mentioned to Howes.
Read More: Facing retirement without savings? There’s no need to worry, you’re not the only one. Here are6 simple methods to get caught up (and quickly)
You are unable to manage something you cannot quantify.
Cardone’s financial approach aligns with the ideas of management expert Peter Drucker, who famously stated, “You can’t manage what you can’t measure.”
It’s a concept deeply embedded in contemporary businesses and financial planning approaches, as they generate quarterly statements detailing all their cash flow, assets, debts, revenue, and costs.
Regularly reviewing your bank account can assist you in gaining a clearer understanding of your personal spending patterns and cash flow. The following step involves managing your cash flow, reducing costs, and beginning to invest any extra funds into your portfolio, which is expected to increase in value over time.
If you had put $1,000 into a high-yield savings account in 2024 with a 5% interest rate, it might have earned an additional $50. But if that same amount was invested in an index fund that follows the S&P 500, it could have earned $262 within the same 12-month period. Over time, these minor increases can accumulate and lead to significant results.
Exchange-traded funds, also known as ETFs, enable you to benefit from the leading stocks listed on major stock exchanges. Are you looking for a method to enter the market while also earning interest on your cash?
You could explore a self-service trading platform such asRobinhoodTo allocate money into ETFs or index funds. You may also choose individual stocks on your own if you are sure about making investment decisions.
Robinhood has Round-the-clock assistance, and there are no commission charges.regarding stocks, exchange-traded funds, and options. The platform also provides both a standard IRA and a Roth IRA, allowing you to take advantage of tax-effective retirement savings.
New users of Robinhood can alsoget a free stockOnce you register and connect your bank account to the application.
You may choose your stock reward from leading American corporations, with various amountsranging from $5 up to $200.
Personal inventory
Cardone emphasized the need to carefully track your financial resources and possessions.
He mentioned that he reviews his cash and investments “every single day.” This practice allows him to conduct a “personal inventory” of where all his funds are and how they are performing. He feels this routine is “non-negotiable” for anyone aiming to grow their wealth.
“If [your account] is zero, stare at it until it nauseates you,” he said.
If you’re currently at a standstill and unsure how to boost your savings or begin constructing your investment portfolio, tryAcornsto assist you in investing while you make purchases from your bank account.
Acorns is a digital savings and investment platform that puts your extra change to work for you.
When you use your credit or debit card to make a purchase, Acorns automatically rounds the total up to the next whole dollar, with the extra amount going into a smart investment account. This means that even your everyday expenses help you save and invest for the future — allowing you to build wealth effortlessly.
Additionally, Acorns allows you to tailor your saving approach. With anAcorns Silverplan, you gain access to Acorns Later, a retirement investment account that offers a 1% IRA match on new contributions. WithAcorns GoldYou receive a 3% IRA match for new contributions, an investment account for your children, and the option to tailor your portfolio by choosing your own stocks.
Register today and for a limited time you’llget a $20 bonus investment.
What To Read Next
- No time to reduce your expensive car insurance costs?Here’s how to do it in just a few minutes — you might find yourself paying $29 per month without making a single phone call.
- This $1 billion private real estate fund is now available to individuals who are not millionaires.Here’s how you can begin with as little as $10
- Robert Kiyosaki says This single asset is expected to increase by 400% within a year.— and he urges investors not to overlook its ‘explosion’
- Dave Ramsey says this 7-step strategy ‘proves effective every time’ to eliminate debt, achieve wealth in the United States— and that ‘anyone’ is capable of doing it
Connect with over 200,000 readers and receive the top stories and private interviews ahead of time — expertly selected and sent weekly.Subscribe now.
This article offers information solely and should not be interpreted as guidance. It is offered without any form of guarantee.