Fractional Reserve Banking with Neel K. Sanghi

How does it work? Fractional Reserve Banking with Neel Sanghi works like this. You give me your cash. I will then issue (write) you a bunch of checks equalling the amount of money you gave me. You can redeem these checks as you would normally spend checks.

For example: You deposit $5000 cash with me, and receive 120 checks totalling $5000 cash:

• 40 checks for $100 each = $4000
• 40 checks for $20 each = $800
• 40 checks for $5 each = $200

Simply Put

Give me your cash, and I will write you a valid check. I will be personally liable for your deposit with me.

Mini FAQ

But my bank offers these services already, why bank with you, Neel Sanghi? Your bank does offer these services for you to store your money there. The (a member of the Federal Reserve bank) bank is legally allowed to loan out $9 for every $1 that's in the bank. But how can this be? That would mean the bank doesn't really have everyone's money that they claim they have. This is true, and has been since money has stopped being backed by gold deposits (technically even before then -- watch the videos). Anyway, if everyone tries to withdraw their money at the same time the bank would have to close, or would actually deny your money. This has happened in the 1930's and it's called a run on the banks. Who is personally liable for your money? The answer is no one. No one accept the FDIC (which is an insurance company), and that is only up to $100K per depositor, and probably doesn't cover a run on the banks.

What's my incentive to do this besides a personal garauntee (indemnification/accountability) of my Federal Reserve Notes (cash)? Geez, the bank will pay me interest on my money, right? Yes, the bank does pay interest. However the interest they pay is a very small amount. The incentive that I will offer is high yeild.

Why will offer instead of offer? The reserves need to be built up and be monitored/analyzed for average min/max balance amount per depositor, min/max reserve amount, constantly until definite trends emerge. The trends will be anaylized and correlated with high yeild opportunities with no risk to the depositors, but the high return will be shared.

The banks return on your depost is immediatly $9 for every dollar you put in, and $90 to the banking system. Banks already work just like this but on the margin of $9 loan dollars to $1 real dollar deposited in the bank. The closed system of the banking world means that this $1 actually turns into $90 after repeated deposits. In other words: the banking systems turn your $1 into $90, and you get about 3 cents if your lucky. That's only $87.97 more than you made off your own dollar with your conventional bank.

My experiment in banking will give you much better interest than 3% verses the banks 9000% from your dollar. You have nothing to lose if the system doesn't work (it already works like this). You can cash your checks at anytime, and be out of the system. It's a felony to write a bad check, so you can be garaunteed that my check is a good as cash, and can be redeemed at any bank, or with me.

I can tell you that after the trend shows a robust fractional reserve. I, Neel K. Sanghi, will personally make the decisions on how to generate maximum returns on your deposits. Like 9%. Wait a second! this sounds like a Certificate of Deposit where I deposit money for a fixed period and get my money out but not until the term is up, and have earned a little interest on it.