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Are you one of those people who doesn’t trust banks? You’re not alone. Actually, more and more people are searching for different ways to invest and save their money. This is particularly true in light of the most recent financial crises, which have eroded trust in the established banking industry.
But where do you put your money if you don’t trust banks? There are a number of options available, each with its own risks and rewards. In this guide, we’ll explore some of the most popular alternatives to banks, so you can decide which one is right for you.
Before we dive in, let’s first address the elephant in the room: why don’t you trust banks? Is it because of their history of risky lending practices? Or maybe you’re concerned about the security of your deposits? Whatever the reason, it’s important to understand your own motivations before making any decisions about your money.
Now let’s take a look at some of the places where you can put your money if you don’t trust banks:
1. Credit Unions:
As member-owned financial organizations, credit unions are frequently regarded as a more reliable option than banks. Generally speaking, they provide more individualized service, better interest rates on savings accounts, and fewer fees. Since credit unions are not answerable to shareholders, they are also less likely to participate in risky lending practices.
2 Real Estate:
Over time, real estate investing can be a very effective way to accumulate wealth. However, it’s important to do your research and choose your investments carefully. There is always a chance of losing money in the real estate market, which can be unstable.
3. Precious Metals:
Gold and silver have been used as a store of value for centuries. They are often seen as a safe haven asset, as their value tends to hold up well during times of economic uncertainty. However, it’s important to remember that precious metals are not without risk. Their prices can fluctuate significantly, and they can be difficult to store securely.
4. Cryptocurrency:
Cryptocurrency is a digital currency that uses cryptography for security. Its value has fluctuated greatly, and it is a relatively new asset class. But some think that investing in cryptocurrencies could be a wise long-term move.
5. Cash:
One useful strategy to ensure you have cash on hand in case of an emergency is to keep a portion of your money in cash. But keep in mind that cash isn’t a wise long-term investment because it doesn’t earn interest.
6. Businesses:
Starting or investing in a business can be a great way to build wealth. However, it’s important to choose your business carefully and be prepared to put in the hard work required to make it successful.
7. Alternative Investments:
There are a number of other alternative investments available, such as art, antiques, and collectibles. These investments can be a good way to diversify your portfolio, but they can also be illiquid and difficult to value.
Ultimately, the best place to put your money if you don’t trust banks depends on your individual circumstances and risk tolerance. Do your research, consider your options carefully, and choose the investment that is right for you.
Here are some additional tips for keeping your money safe:
- Diversify your investments. Don’t put all your eggs in one basket.
- Invest for the long term. Don’t try to get rich quick.
- Do your research. Don’t invest in anything you don’t understand.
- Be prepared to lose money. All investments carry some risk.
- Seek professional advice. If you’re not sure where to start, talk to a financial advisor.
By following these tips, you can increase your chances of keeping your money safe and growing your wealth over time.
P.S. I’m not a financial advisor, so please don’t take this as financial advice. This is just my opinion based on my own research. Always do your own research before making any investment decisions.
Certificate of deposit (CD)
Like a savings account, a certificate of deposit (CD) is often a safe place to keep your money. What sets a CD apart from a savings account is that the former usually locks up your money for a predetermined period of time. If you withdraw the cash early, you’ll be charged a penalty.
In a rising rate environment, locking up your money in a CD can be a bad idea because CDs typically have fixed yields. Conversely, locking in your money can be a smart move during a time when rates are falling.
CD terms commonly range between three months and five years, although shorter and longer ones can be found. Common types of CDs include:
- Conventional CD: The most popular type of CD, it pays a set yield for the duration of its term. If the money is taken out before the term is over, there will be an early withdrawal penalty.
- No-penalty CD: Also referred to as a liquid CD, this type of account lets you take money out early. However, the yields on no-penalty CDs are typically lower than those on traditional CDs.
- Bump-up CD: If rates on CDs have improved, you can usually request one rate bump for the duration of the term.
One strategy to grow your earnings is to open several CDs that mature at different times. When compared to investing all of your money in a single CD, CD laddering offers flexibility and lower risk.
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Don’t Trust Banks with Your Money!
FAQ
What to do with money if you don t trust banks?
Where is the safest place to keep money in the bank?
Where is the safest place to put money other than a bank?
Where is a better place to put your money than the bank?
What if you don’t trust banks?
It’s a pretty terrible industry. There are a couple of places you could keep your money if you don’t trust banks such as in real estate investment trusts, peer-to-peer lending accounts, cryptocurrency, or US-backed securities. However, all of these are investments and come with some kind of risk.
What if you don’t have a bank account?
Whether they don’t have a bank account by choice or circumstance, these people could save money and time by joining, or rejoining, the banking ecosystem. The reasons for not having an account vary, but each can be overcome.
What should I do if I don’t have a checking account?
Instead of a checking account you could store your cash in a high-yield savings account, a money market account, CD, or brokerage account. Retirement contributions are another strong contender: consider additional 401 (k) contributions, as well as traditional and Roth IRA contributions. Do you have some extra cash sitting in a checking account?
Should you keep your money in a checking account?
And your money is allowed to grow tax free, like a Roth IRA or other tax-advantaged retirement accounts. In a world where the best savings accounts and CDs are paying over 5.00% APY, and where saving for healthcare and retirement earns tax breaks, no one should leave their cash sitting in a checking account.