What are the disadvantages of saving money in the bank?

[Abigael]

The disadvantage of saving money in the bank is that the interest earned is so small as compared to what you can earn when you invest your money. Moreover, whenever inflation occurs for example what has happened during the pandemic period, your money in the bank looses its value.

 

[Nurudeen]

It's easy to save money in the bank so as to keep your money secured but the disadvantage of this is the endless bank charges that comes with saving your hard earned money with those banks

 

[chalcedony8]

I have never thought of it before I always think it has no disadvantage but thinking about it now, everything surely has a disadvantage

 

[Variable]

If the Central Bank's Value goes down, your money loses its value, and depending on the region you're in, some banks don't offer insurance for your account , so if it goes bankrupt its gone.

 

[gammarays]

Saving money in banks these days is not profitable due to the high rate of inflation. You get to earn less than 10% in a year which is poor to a risk taking investor.

 

[chalcedony8]

saving money in banks has it own disadvantages too.. In d area of charges, the banks tends to charge more on transaction and it's affects the money in d account

 

[Trojan8]

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?

Money kept in banks are largely save since banks are expected to keep a proportion of their entire deposits with the Central Bank and there's insurance too. Major disadvantage is with the low yield.

 

[Lyrrex]

Money kept in banks are largely save since banks are expected to keep a proportion of their entire deposits with the Central Bank and there's insurance too. Major disadvantage is with the low yield.

yeah, there are cases of lower yield. But ofrom my own personal experience, have kept some funds in the bank and after a couple of months I noticed that the amount has reduced by some fractions.

 

[Ralphjoe]

The only disadvantage I can come up with in saving our money in the bank is that they don't give high interest on our savings and most banks charges you for keeping your money for you, we are currently going through this in Nigeria where banks charges their customers alot.

 

[joy101]

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?

bank is a legit money institution, even if it folds your country's government will push them to complete all debt owed. Be rest assured that yours is not exempted.

 

[Lyrrex]

bank is a legit money institution, even if it folds your country's government will push them to complete all debt owed. Be rest assured that yours is not exempted.

For real? Because have seen a case where a microfinance bank folded up and lots of investors lost part of their the money, and till date they weren't able to recover it in full.

 

[Golden_ear]

My money is saved in banks, but it does not add more money to the one I have before. And also sometimes I might need money to buy something, and the bank services might not be good, so I will have to wait till they rectify service issue. So I have learnt to keep my money in a crypto wallet and invest with it.

 

[Sincerem]

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?

If you ask me, I will say, one of the disadvantage is the recurring charges, deductions I get on a daily basis without authorising any transaction. Makes me feel so disheartened and embroiled with sadness. I don't like such idea of unnecessary deductions.

 

[Trojan8]

yeah, there are cases of lower yield. But ofrom my own personal experience, have kept some funds in the bank and after a couple of months I noticed that the amount has reduced by some fractions.

Maybe you were operating a current account which in most cases does not attract any interest so the deductions could be from bank charges. Or there was a bank order on same account? A bank order is like an order for the bank to make some payments for you in future.

 

[salman Royy]

In my opinion, your money is safe by the bank, there will be no loss. By the way, if the bank is closed, you can take action on it. In my opinion, it is never closed. Many rich people think and keep money in the bank thinking that our money will be safe now. You will be safe with your money. You should think positive.

 

[Dubai]

The disadvantage of saving money in the bank is that the money is likely to loose value or remain the same in value without appreciating. Money kept in banks could have been used for investment and grow further but it remains stagnant.

 

[Alexandoy]

In our country the bank deposit is protected by the government's insurance called PDIC - Philippine Deposit Insurance Corporation. The amount covered by the insurance is 500k pesos or $10k. When the money is greater than the limit you can break down the amount to another bank account. In the recent 3 decades there was no bank that closed due to bankruptcy. Most of the banks that closed were bought by the big banks so there was no issue with the deposit. Our money is in the biggest bank in our country. That gives us peace of mind.

 

[vest1992]

First of all your money are frozen so you cannot use them but there is a bigger issue here which is bankruptcy on the long run, it happened to my grandparents.

 

[WhiteHouse]

The inconvenience is that the cash is simply sitting their. You are not bringing in the cash work for you rather your leaving the cash and not utilizing it to get more from it.
And again because of rising inflation your money becomes more worthless.

 

[Presido]

Saving money in the bank is more advantageous, the only disadvantage I think it has is blocks your mind from investments ideas