What are the disadvantages of saving money in the bank?

[Lyrrex]

Due to my experience with many banks folding up, I've developed more interest in this subject. Are our money safe in the bank?
What would happen if a bank folds up, Will our money be gone? are there ways to retrieve our money?

 

[Elijahekom]

The advantage of saving money in the bank is that no body will steel your money, you are the only one who has access to it .

 

[Sariana23]

In the case of my country, one of the great disadvantages is the monetary devaluation, you have an amount for a certain value and after 15 days it is already half the value. Right now it is not recommended to have money in the banks here. On the other hand, several banks have closed and many people have lost their capital.

 

[Lyrrex]

In the case of my country, one of the great disadvantages is the monetary devaluation, you have an amount for a certain value and after 15 days it is already half the value. Right now it is not recommended to have money in the banks here. On the other hand, several banks have closed and many people have lost their capital.

Oops that doesn't sound well so what are the government doing to recover back the lost funds.

 

[Sariana23]

Oops that doesn't sound well so what are the government doing to recover back the lost funds.

I understand that some people recovered part of their savings, through the government but many others lost everything. It is unfortunate

 

[Kamon c4]

In the case of my country, one of the great disadvantages is the monetary devaluation, you have an amount for a certain value and after 15 days it is already half the value. Right now it is not recommended to have money in the banks here. On the other hand, several banks have closed and many people have lost their capital.

How does a currency devaluation affects the money in the bank? I think currency devaluation affects exports and imports not the money in the bank ...please shed more light into this

 

[Braga13]

First thing why just save them ? What s the meaning of that ! What's the point ? Invest them or use them to buy smthng u can sell later with a higher price

 

[Sariana23]

How does a currency devaluation affects the money in the bank? I think currency devaluation affects exports and imports not the money in the bank ...please shed more light into this

Here in my country, they are valuing the currency based on the dollar, the price of the dollar rises almost daily. Example last week 1 $ was at 750,000.00 bolívares, today 1 $ is at 962,000.00 bolívares. When you go to buy, all prices are based on the dollar, the bolivar loses its value being in the bank and even having the money in cash. the best way to cope is to have dollars.

 

[Peterlight]

I would advise you to save money in world recognise banks, banks that have branches in almost every state and countries in the world..they are more reliable than banks that have one branch in a nation..they easily go bankrupt

 

[Suba]

In many countries, your money in the bank will be safe, even if the bank fails, goes bankrupt or merger, because it is guaranteed by the central bank on a limited basis, (Read the rules on your local bank). but disadvantages you keep large amounts of money in the bank, of course you will lose because the interest rate you earn is smaller than the inflation rate, so the value of your money will decrease.

 

[Niftyyem]

Saving money in banks should not be a long term thing. It is better to just save up for a while and invest as soon as you can. This helps to beat inflation to an extent.

 

[Ehizzy1]

I think some banks do have regulation controlling their operation ,so i think even if they fold up they will have to compensate the affected victims

 

[Salma tahir]

Saving money in the bank benefits the national treasury. It is easier to work on development projects in the country. It gets rid of external debts. It helps to work for the welfare of the people.

 

[Josemendez]

I think the disadvantage of saving money in the bank is that it the savings does not grow much.

 

[WhiteHouse]

Right now, the interest banks give on money saved is little or nothing rather they even remove some from it. it's not advisable to save huge amount in banks instead invest it into some business because of rising inflation.

 

[Abonyo Dickens]

That's why i use government banks. It's not easy for them to collapse. Most of the banks have seen collapsing are private owned bank which conduct a lot of malpractises causing bank failure. I think banks have more advantages than disadvantages when it comes to savings. It will also depends on money policy in your country and bank regulations...

 

[chicnthin]

I don't really see an disadvantage. Although saving at banks could only give you small percent from what the banks are earning because of the money we save there. Even if the bank goes bankrupt, you could still take your money back because of the law.Unless you're planning to invest your money to grow faster.

 

[MRizwan530]

This is a very good question for you. I would say that the best question you have asked since I have been using this forum.The biggest disadvantage of saving money in a bank is that The value of money is declining day by day and if we keep the money in the bank and withdraw it after a few years, the amount will not be as important as it was at the time of deposit.So instead of saving money in the bank, we should invest our money so that we have it now and our money is not devalued.

 

[Odekayodejnr]

The o my advantage I know is that it help me to avoid spending

 

[Venant]

From your write-up it shows you're scared of your savings. Lol, here in Nigeria each bank is covered by what we call NDIC the function of this agency is that if a Banks folds up now your savings would still be intact. It is basically like an insurance cover.