One of the most painful reminders of the financial crisis are the interest rates that banks pay on deposits. Bank of America (NYSE:BAC), which serves as a typical example, pays less than two-tenths of a percent on most of its customers' accounts. With inflation at around 2%, that means investors are actually losing money in real terms by socking it away at the bank. In the video below, Motley Fool contributor John Maxfield discusses one way to reduce the pain from this trend.
John Maxfield owns shares of Bank of America. The Motley Fool recommends and owns shares of BofI Holding. It also owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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