The Banking Function
Why controlling where your money flows matters more than chasing rate of return.
From Becoming Your Own Banker, Chapters 4–7
Every time you make a purchase, pay a bill, or finance something, money flows through a banking system. Someone controls that system — and whoever controls it captures the interest. That's the banking function.
Most people never think about this. They earn, deposit, and borrow back — paying interest to a bank for the privilege of using their own economic output. The Infinite Banking Concept asks: what if you controlled that flow instead?
“The function of banking is the most important thing you can do in your financial life.”
— Nelson Nash
The average American pays roughly 34.5 cents of every dollar earned toward interest charges over their lifetime. That's a massive transfer of wealth to financial institutions. IBC is about recapturing that flow by becoming your own banker.