In the last week, I have received two letters from my bank about my savings accounts, both of which demonstrated that my future savings income is at CONSTANT RISK and that the banks cannot be trusted to look after my money safely.

Both of the letters began as follows:

Your savings account is changing

Dear Mr Botham,

We are making some changes to simplify our savings account range and want to ensure that you understand the changes to your account and what these changes mean for you and your money.

Your account will change to an Everyday Saver by 26 September 2013, as detailed below:

The letter then had a table that showed my interest rate on my cash savings currently at 2.36% being cut dramatically to only 0.5% under the new “simplified” arrangement.

This means that the annual interest that I will earn is being reduced by a whopping 79%!

So instead of earning a paltry £23.60 on every £1,000 I have saved, I will now earn an even more pathetic £5!

Has this ever happened to you?

Income From Your Savings Is At Risk

If you have savings in a bank account then I’d expect it has because this kind of non-customer-friendly behaviour is typical of the banks, isn’t it?

The opening to their letter makes it sound like it is for my benefit (“simplify our savings account range”) when in reality, the truth of the matter is that it is entirely to their benefit, not mine.

The upshot is that I now have yet another chore to find an alternative bank, open a new savings account and transfer my cash savings across so that I can get a better rate of interest.

Of course, the bank hopes I don’t do this and relies on a significant proportion of its customers being too busy or lethargic to bother.

Which is another example of how they make money at our expense and it’s not surprising that most people can’t be bothered when all you get for your effort is an interest rate of circa 2% as your reward.

Even this is below current inflation rates, which means that you are losing money year on year in real terms.

How To Protect Your Money

This is one of the reasons that I decided to start investing some of my spare cash instead of just saving it.

Not all my money, you understand, because that would be too much of a risk for me to take.

But I realized years ago that there is no point keeping lots of cash sat in a savings account doing very little and when I started investing, the interest rates on savings were much, much higher – something like 6% or more, I think.

  • Are you looking for ways to get a better return on your spare cash?
  • Are you comfortable with the idea of investing some of your money to get returns above the rate of inflation to build your wealth instead of allowing the bankers to destroy it?
  • Are you downloading e-books, buying books on Amazon, half-reading them and getting frustrated that you can’t seem to get started?

If this is you and you haven’t got started because you weren’t sure about it, couldn’t decide, haven’t got the time, haven’t got the money or thought it might not work for you, then remember this…

Your bank exists to make money for itself and its shareholders, not for you.

Not happy with borrowing money from me at 2.36% and lending it to its credit card customers (not me incidentally) at 18%, my bank now wants to borrow from me at only 0.5% and I don’t get a say in the matter, other than to go elsewhere.

My greedy bank wants to make even more money than it was before, presumably to continue paying their over-inflated bonuses?

That’s great for the bankers isn’t it?  Nice work if you can get it.

Well do you know what, you can!

How To Beat The Bankers At Their Own Game

The silver lining in this little story is that the bank is owned by its shareholders and it is therefore the shareholders that benefit most from the banks’ behaviour.

If you’re starting to realize or you’ve decided already that it’s time for you to become a shareholder (not necessarily of bank shares) then it’s time for ACTION.

Let’s face it, earning a mere fiver per year on every £1,000 you save is never going to make you wealthy or generate the kind of income that you need to enjoy the financial freedom you deserve, is it?

My mission is to help you to achieve your financial dreams so that you can live and enjoy the kind of lifestyle that you desire.

Don’t allow your bank to make a lot more money from your spare cash than you are yourself – it’s your money, not theirs.

So…If you can’t beat ’em, join ’em!

Start Investing For Income

If you want to beat the bankers and get better returns then you need to invest your money elsewhere.

Remember, this does not have to be an all or nothing approach.

Indeed, I always recommend that you clear your debts and have sufficient cash stored in cash savings to cover any potential emergencies.

Any cash in excess of that amount though is best invested.

I invest my money into shares that provide income from high dividends.

I also invest my money into shares that don’t produce any income but could potentially multiply in value several times over.

In other words, I split up my investments into different baskets and apply different strategies for each.

And you could do the same.

Are you ready to take ACTION?

If you want to earn more income from your spare cash and start learning how to invest then get started by downloading the FREE guide below.

And when you’re ready to become a shareholder, check out my X to 3X in 7 Self Study program – it walks you through my unique 7-step system teaching you everything you need to know to get started investing in company shares in the next 7 weeks or less.