If you’ve ever wondered how is it that banks can pay you interest on your cd and savings account will here is how it’s done. Banks lend out your money for high interest rates and give you a fraction of the interest they earn in many cases the bank uses your money to fund loans and you do not earn a cent. For that reason, many people are turning to alterative means to earning higher interest on their money.
There are several alterative means to earning safe interest on your money. Investa Club has taken the banking industry system an adapted it to fit their member’s needs. Investa Club, is an investment club “An investment club is a group of people who pool their money to make investments”. Investa Club pool their member’s funds together and provide business loans to companies earning their members an average 3% monthly return. Everything that is done at Investa Club is transparent Investor-Members can see how much and where the funds from their accounts have been invested. Investa Club has a network of businesses that will pay you 3 percent or more monthly to borrow your money.
Your bank and 401k provider has been doing this for years, the only difference is.
At Investa Club you get to see who’s borrowing your money, how much interest is charged, when payments are due and when payments are made.
You can start your account with as little as $500.
Banks basically make money by lending your money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt they own, and pay low interest on deposits and CDs which you the account holder own.
Deposits by far are the largest source of money for banks, the money we entrust to the bank for safekeeping, as well as modest amounts of interest. These accounts are generally the checking and savings accounts that so many people currently have.
While people will typically maintain accounts for years at a time with a bank, the customer reserves the right to withdraw the full amount at any time. Customers have the option to withdraw money upon demand and the balances are fully insured, up to $250,000, therefore, banks do not have to pay much for this money. Many banks pay no interest at all on checking account balances, or at least pay very little, interest rates for savings accounts.