What are the disadvantages of saving money in the bank?

[Muhammadawais]

There are many benefits and drawbacks of having a savings account. Savings accounts have three advantages: the ability to earn interest, the ease with which they can be opened and accessed, and FDIC insurance and protection. Minimum balance requirements, lower interest rates than other accounts/investments, and federal caps on saving withdrawals are three drawbacks of savings accounts.

 

[Mildred254]

Currently I will say there are more advantages than disadvantages. The only main disadvantage is if the bank collapses which rarely happens.

Most savings account in my country have minimal fees, small maintenance balance and no monthly maintenance charges. This means that if I keep $10 in my bank, I will still have $10 in the next 6 months if I don't use it.

 

[Sariana23]

I don't think that if a bank folds all the money will be gone like that. Saving money in the bank has advantages and disadvantages. One of the advantages is that nobody is gonna steal money and of course you don't need to worry about it. One of the disadvantages is that the currency of that particular country you are may devaluate and of course if you're planning to travel abroad the money will be shortened.

What you are describing is what is happening in my country. "The currency of that particular country in which it is located can devaluate" and in an accelerated manner, for us it is not convenient in any way to save money in the bank, previously it was the best option.

 

[Setho]

I you want to save money, the bank is the safest way to do it. Do not make the Internet receive you. The problem is that banks charge you small fees for keeping your money with them and if you want to save for long term use then I would rather invest the money into something safe.

 

[Good-Person]

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.

Apart from money devaluation, some of the disadvantages include getting monitored by the government, paying heavy taxes, etc. So people tend to not to save their money into bank accounts and they would rather avoid taxes or getting monitored by the government. They do this by buying valuable items like gold or store their money somewhere else.

 

[Patrik]

the only disadvantage i found so far are the cuts that you receive each months for owning the Visa and the mastercard, but besides that, there are no advantages that i have encountered so far

 

[Sariana23]

Apart from money devaluation, some of the disadvantages include getting monitored by the government, paying heavy taxes, etc. So people tend to not to save their money into bank accounts and they would rather avoid taxes or getting monitored by the government. They do this by buying valuable items like gold or store their money somewhere else.

This is another reason, at least in my case. I try not to mobilize my bank accounts very often as a precaution of monitoring, I also keep my money in my Airtm wallet in $, this way I cope with the devaluation.

 

[Good-Person]

This is another reason, at least in my case. I try not to mobilize my bank accounts very often as a precaution of monitoring, I also keep my money in my Airtm wallet in $, this way I cope with the devaluation.

I have always preferred keeping my money in online wallets and payment processors like payeer, PerfectMoney, AirTM, etc. However, merely keeping or storing your money into these payment processors would not prevent your money from getting devalued. The only problem with online payment processors is that they can close without warning and you can lose your money. In the past Liberty Reserve, Payza, and Solid trust Pay got closed without any warning and people lost money.

 

[Abbeyola]

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?

T

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.

The disadvantage of keeping your money in the bank for long term is, that it would not add up, even if it does, very little.

 

[Godleads1]

Well, everything is at risk in life. People and money aren't safe. Money in bank is not totally wrong but the so called charges are just too much. The bank charges do not just help issues of saving as the charges are just too much.

 

[Adventurer]

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?

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?

Ideally NO there are some government bodies in charge of situations like this that should be able to recover your money, but this obtains in an oraganised society

 

[Setfragil]

Saving money in the bank is the conventional way of keeping money to withdraw for later use. There is no much disadvantages in saving your money in the bank than little interest will be added to it compare to if the money is invested in a good business, the bank is just good for money keeping.

 

[Sincerem]

Their is no interest to be added for you saving your funds in the bank. The deductions they make must be greater than the amount of interest added to you as reward for banking with them.

 

[Sariana23]

I have always preferred keeping my money in online wallets and payment processors like payeer, PerfectMoney, AirTM, etc. However, merely keeping or storing your money into these payment processors would not prevent your money from getting devalued. The only problem with online payment processors is that they can close without warning and you can lose your money. In the past Liberty Reserve, Payza, and Solid trust Pay got closed without any warning and people lost money.

It is true, these things can happen and in the end I can lose all my money, but so far it is the best option I have. As I described having dollars in the portfolio keeps me from being affected by devaluation, it is the risk I have to take. I would love to have more security, what is your recommendation?

 

[Billy]

The biggest disadvantage is that the interest can be very low. Most of the banks will prefer you take a loan instead of depositing cash in your account.

 

[Victor001]

People are feeling its not normal for bank to deduct charges from their accounts, but they forgot easily that this bank also provide security for their funds, this same bank make transaction swift irrespective of locations.

 

[Good-Person]

It is true, these things can happen and in the end I can lose all my money, but so far it is the best option I have. As I described having dollars in the portfolio keeps me from being affected by devaluation, it is the risk I have to take. I would love to have more security, what is your recommendation?

The best way to not to lose your money while keeping it in an online wallet is to deposit your money in cryptowallets. Cryptocurrencies are decentralized, so no one can techniacally take away your funds. The biggest problem is that cryptocurrencies are so volatile that the value depreciates and increases in a matter of minutes. This is why I keep my money in online payment processors. But I have always questioned the reliability of such payment processors after many such kinds of payment processors like Liberty Reserve, Payza, etc got shut down.

As far as I know, Liberty Reserve started in 2006 and Payza (formerly known as Alertpay) started in the year 2004, so both of them were pretty old payment processors. They conducted operations without any problem during the mid 2000s until they were shut down by the authorities for money laundering and fraud. I remember receiving my $2 from a forum that used to pay via Liberty Reserve. Gosh! Those days were awesome and I shall never forget those days.

Anyways, I always fear when it comes to depositing money in online payment processors. There is ALWAYS a risk.

 

[Kelly5]

The disadvantage are much. But the obvious one among them is that the banks won't give you the interest that is due you when they go about using your deposited funds to run their business

 

[Sariana23]

The best way to not to lose your money while keeping it in an online wallet is to deposit your money in cryptowallets. Cryptocurrencies are decentralized, so no one can techniacally take away your funds. The biggest problem is that cryptocurrencies are so volatile that the value depreciates and increases in a matter of minutes. This is why I keep my money in online payment processors. But I have always questioned the reliability of such payment processors after many such kinds of payment processors like Liberty Reserve, Payza, etc got shut down.

As far as I know, Liberty Reserve started in 2006 and Payza (formerly known as Alertpay) started in the year 2004, so both of them were pretty old payment processors. They conducted operations without any problem during the mid 2000s until they were shut down by the authorities for money laundering and fraud. I remember receiving my $2 from a forum that used to pay via Liberty Reserve. Gosh! Those days were awesome and I shall never forget those days.

Anyways, I always fear when it comes to depositing money in online payment processors. There is ALWAYS a risk.

Very interesting and educational your publication, excellent experience lived on your part, and really as you say there is the fear of losing the little or much you have, since you have worked hard to get it, as in the cases you have explained due to the closure of these payment processors, let's hope it does not happen to us.

 

[Chibson]

Saving money in the bank has some advantages especially in developing countries. One of the main disadvantage of saving money in the bank in my country is monetary devaluation. When you have huge amount of money in the bank and you know time the value of the currency goes down against the dollar then the money will actually not be useful as it ought to be.