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Is the average American investor getting scammed? Real estate mogul Grant Cardone believes they are.<\/p>\n
Speaking on a podcast last year, Cardone said, \u201cFinancial literacy is not the issue in this country. Financial indoctrination is the issue. We\u2019ve been indoctrinated to benefit banks.\u201d<\/p>\n<\/p>\n
\u201cYou get money, you work your a\u2013 off and then you give it to an institution and forget that it\u2019s there,\u201d he said during an earlier interview with podcast host Lewis Howes. \u201cWells Fargo is paying you nothing, Bank of America is paying you nothing. You send it to Chase, they’re not paying you anything.\u201d<\/p>\n
But is Grant Cardone<\/a> right? Is there evidence to suggest that many Americans are getting a bad deal on their bank balances?<\/p>\n The interest rate on deposits held at major banks is nearly 0%. Wells Fargo, Chase and Bank of America offer entry-level rates of 0.01% on these deposits.<\/p>\n Given that the Federal Reserve\u2019s benchmark interest rates are between 3.75% and 4.00%, bank deposit rates certainly appear like a bad deal.<\/p>\n The national average savings rate is just 4.6% as of August 2025, while the rate of inflation sits at 3.0%. No matter how you look at it, it seems the value of your money is shrinking over time.<\/p>\n A survey of 8.3 million Chase customers by JP Morgan found that the median cash balance in a checking account was around $6,600 depending on income bracket, as of February 2024. That\u2019s a lot of money in aggregate that isn\u2019t earning much interest.<\/p>\n To be fair, these checking accounts are not designed for capital appreciation. Account holders generally use this cash for daily transactions and short-term needs, such as rent and utilities.<\/p>\n High-yield savings accounts currently offer interest rates as high as 4.21% in some instances, according to data from Bankrate.<\/p>\n However, Cardone argued that people are either unaware of better rates or unwilling to go seek them out. \u201cPeople are unconscious, they don\u2019t know where their money is,\u201d he told Howes.<\/p>\n Trending: Robert Kiyosaki says this 1 asset will surge 400% in a year<\/a> \u2014 and he begs investors not to miss its \u2018explosion\u2019<\/strong><\/p>\n Cardone\u2019s financial philosophy echoes the words of management consultant Peter Drucker, who once said, \u201cYou can’t manage what you can’t measure.\u201d<\/p>\n Story Continues <\/p>\n It\u2019s a philosophy that\u2019s baked into modern corporations and professional investment strategies, as they prepare quarterly reports on all their cash flow, assets, liabilities, income and expenses.<\/p>\n Frequently checking your bank account could help you get a better grip on your personal spending habits and cash flow. The next step is to control your cash flow, minimize expenses and start deploying excess cash into your portfolio that will hopefully appreciate over time.<\/p>\n If you invested $1,000 in a high-yield savings account in 2024 at 5% interest it could have generated an extra $50. However, if it was invested in an index fund that tracks the S&P 500, you could have generated $262 over the same 12 months. Over time, these small gains can add up and make a big difference.<\/p>\n Exchange traded funds, or ETFs, allow you to take advantage of the top stocks on major exchanges. Need a way to wade into the into market that also allows you to gain interest on your cash?<\/p>\n Public<\/a> is a commission-free self-directed platform that can help you build your own portfolio and choose which assets to invest in.<\/p>\n Public not only offers commission-free trading<\/a> and you can also access real-time insights and active message boards where you can trade tips with other investors.<\/p>\n Sign up now and start investing with as little as $1<\/a>.<\/p>\n Cardone stressed the importance of closely monitoring your wealth and assets.<\/p>\n He noted that he looks at his cash and investments \u201cevery single day.\u201d This helps him take \u201cpersonal inventory\u201d of where all his money is and what it\u2019s doing. He believes this habit is \u201cnon-negotiable\u201d for anyone looking to build wealth.<\/p>\n \u201cIf [your account] is zero, look at it until it makes you sick,\u201d he said.<\/p>\n If you\u2019re currently at zero and not sure how to increase your savings or start building your portfolio, try Acorns<\/a> to help you invest as you spend from your bank account.<\/p>\n Acorns is an automated savings and investment app that makes your spare change go to work for you.<\/p>\n When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar, and places the excess in a smart investment portfolio. This way, even the most essential spending translates to money saved and invested for the future \u2014 and you get to generate wealth without even thinking about it.<\/p>\n Plus, Acorns lets you customize how you save. With an Acorns Silver<\/a> plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold<\/a>, you get a 3% IRA match on new contributions, an investment account for your kids, and the ability to customize your portfolio by selecting your own stocks.<\/p>\n