> As you know if you read enough about banking, and as the intro points out, banks already invest your balance in risky stuff.
Not really. They invest primarily in mortgages which they package up and sell to Fannie Mae.
More importantly checking and saving deposits are insured by the FDIC so the risk of loss for the end consumer is zero below $250K (per account!).
Investment accounts would have SPIC insurance against insolvency but the actual risk of market loss is borne entirely by the end consumer. If you’re riding your mortgage payment on whether you don’t lose in any given month, things could get ugly. Ditto for the tax consequences of churning to cover bills.
Not really. They invest primarily in mortgages which they package up and sell to Fannie Mae.
More importantly checking and saving deposits are insured by the FDIC so the risk of loss for the end consumer is zero below $250K (per account!).
Investment accounts would have SPIC insurance against insolvency but the actual risk of market loss is borne entirely by the end consumer. If you’re riding your mortgage payment on whether you don’t lose in any given month, things could get ugly. Ditto for the tax consequences of churning to cover bills.