At Creditvana.com, our mission is to help you make smarter financial choices — and that starts with understanding the truth about where and how you bank. Unfortunately, a surprising number of Americans still fall for outdated banking myths that could be holding them back financially.
A recent nationwide survey conducted by The Harris Poll found that many U.S. adults are misinformed about basic banking facts, especially around online banking, interest rates, investment strategies, and fees. We’re here to break down the most common myths — and share the truths that can help you keep more money in your pocket.
💻 Myth #1: Online Banks Aren’t Safe
False. In fact, many online banks are just as secure — if not more — than traditional banks.
According to the survey, 36% of Americans wrongly believe that online-only banks are less secure. That number jumps to 50% among Gen Z and 43% among millennials. But here’s the truth: FDIC-insured online banks are required to follow the same security standards as brick-and-mortar institutions.
What matters most is your personal cybersecurity hygiene:
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Use strong, unique passwords with a password manager.
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Enable two-factor authentication on your accounts.
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Avoid public Wi-Fi when logging into your bank.
💡 Creditvana Tip: Online banks often offer higher interest rates and fewer fees — and with the same level of FDIC protection.
💰 Myth #2: You Should Invest All Mid-Term Savings in the Stock Market
Not so fast. While investing has long-term benefits, it’s not always the right move for money you’ll need soon.
According to the survey, 43% of Americans believe savings goals that are more than a year away should be invested in the market. Yes, average market returns are higher than savings account interest. But volatility can wipe out gains — especially if you need to withdraw during a downturn.
Instead, mid-term goals (like a house down payment, wedding, or dream vacation) should go into:
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High-yield savings accounts
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Money market accounts
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Certificates of Deposit (CDs)
These offer safer, more predictable returns — and protect your savings when timing matters.
📈 Myth #3: Bank Interest Rates Always Follow Fed Rate Changes
This one’s partly true, but mostly misunderstood.
Yes, the Federal Reserve’s target interest rate affects the cost of borrowing and can influence savings rates. But here’s the catch: not all rates change at the same time or in the same direction.
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A Fed rate hike might cause savings account APYs to rise — but not immediately, and not always.
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Your mortgage or credit card APR might increase before your bank boosts its savings yield.
In short: the connection between Fed policy and your personal rates isn’t automatic — or guaranteed.
💡 Creditvana Tip: If you want the best return on your savings, shop around. Don’t assume your bank will raise rates just because the Fed did.
💳 Myth #4: You Can’t Avoid Bank Fees
Here’s some good news: Banking doesn’t have to come with hidden fees. Nearly 29% of Americans believe all bank accounts charge unavoidable fees — but that’s simply not true.
Let’s break it down:
Common fees — and how to dodge them:
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Monthly maintenance fees
✅ Avoid by maintaining a minimum balance or setting up direct deposit
✅ Or, choose an online bank that doesn’t charge monthly fees at all -
Overdraft fees
✅ Opt out of overdraft protection
✅ Link checking to savings as backup
✅ Set up low-balance alerts -
ATM fees
✅ Stick to in-network ATMs
✅ Many banks now reimburse ATM fees — especially online banks
💡 Creditvana Tip: We always recommend choosing banks that are transparent,
