2 Banks Ramit Sethi Doesn’t Recommend (and 3 Alternatives)
Written by
Travis Woods
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Ramit Sethi, entrepreneur and author of “I Will Teach You To Be Rich,” has a myriad of strong opinions on what you should do with your money, such as how you should spend it, how you should invest it and how you should save it. He’s an ardent believer in where you should save your money, as well.
In a recent YouTube video, Sethi argued against giving your money to two specific banks, and offered three alternatives for you to go elsewhere.
Worst Banks, According to Sethi
In his video, Sethi launched a fiery monologue, noting that “America is forking over $190 billion in hidden fees and surprises charges” every single year to unethical banks, with the two worst offenders, in his opinion, being the following:
Wells Fargo
Sethi opined that Wells Fargo, as a business model, is built upon a total lack of respect for its customers, and was involved in a 14-year business scandal in which the bank was variously charged with mortgage abuse, consumer protection violations, fraud, toxic securities abuses, banking violations, investor violations and much more — to which the bank had to pay a settlement of $3 billion. Finally, he ranked Wells Fargo as a 9 out of 10 on his personal “Bank Exploitation Index” for three very specific reasons:
- Fraudulent practices;
- Poor management;
- A corporate culture that doesn’t care about banking.
Bank of America
The second bank on Sethi’s hit list was Bank of America, which in 2014 was fined with the largest settlement amount ever for an American company at $16 billion due to their role in the 2008 financial crisis, in which Bank of America packaged and sold risky mortgage securities, mislead investors and “fueled the housing bubble that ultimately burst.” The bank scored an 8 out of 10 on that “Bank Exploitation Index” of Sethi’s for the following:
- Poor customer service;
- History of unethical behavior.
Best Banking Alternatives
Finally, as an alternative, Sethi recommended the following three institutions to trust with your money:
- Charles Schwab, for their reliable checking accounts, ATM fee reimbursements, free foreign transactions and no minimum balance or monthly fees.
- Capital One, for its no monthly/ minimum/ overdraft fees, its 70,000 no-fee ATMs and multiple savings accounts policy.
- Ally, for its no monthly/ overdraft frees, mobile check deposit and robust savings account system.
More From GOBankingRates
