What are the disadvantages of saving money in the bank?

[Tariq Shehzad]

I th

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?

I think there are not so much disadvantages reagarding the saving money ib the bank, but there are mostly disadvantages not to save money in the banks. You can do any where transaction by bank.

 

[Maheen Khadija]

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?

They may have withdrawal limits or charge fees or penalties for closing certain types of accounts early. And keeping too much money in one account can put you at risk of losing it should the bank go under, depending on their insurance limits.

 

[Hassan14]

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?

There is no disadvantage in keeping money in the bank in our country because the money that is saved in the bank is better than the money that is in the house. If it is in the house, no one knows at any time. They will keep going, if they are in the bank, they will be safe, so the only benefit is to keep money in the bank.

 

[WhiteHouse]

The disadvantage is that the money is just sitting their. You are not making the money work for you instead your letting the money be your boss. Now if your saving money for lets say a down payment on a house or to pay for a house in full lets say that is 2.5 million usd; it would not be wise to put it all in a saving account since it is not insured by the FDIC. (You should know that anyways if you are dealing with large sums of money) Your best bet would be to put your money in liquid investments like a money market account. (do your own homework on that so you understand what you are doing; such as risks ect

 

[chalcedony8]

saving in bank has more advantages than disadvantage, saving in bank make our money very safe and accessible at any point in time, it as times yields profit, if it is in a fixed deposit account , money saved in bank too is much more secured fomrom theft and damaged that might happen to money kept in safes or undergrounds like they do now a days, the only disadvantage I can say is the increase in the amount charge as bank charges.

 

[Doradorwa]

I don't believe that there are any disadvantages in putting your money in the bank....like not one I've heard of....it's helps to manage how you spend especially when you've already put limit of how much you want to spend per month there are not disadvantage...But at the same time investing money instead of putting it in bank are sometimes better.

 

[giddy]

not just bank alone, saving money generally can devalue that currencies
Simply stashing your money in the cookie jar does nothing to protect you against inflation. The buying power of any money you save is under constant attack from inflationary pressures. Your cookie jar money is doing nothing to offset the inflation. So at the end of the day, your savings actually have less buying powe

 

[Kennysplash]

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

I

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?

Banks are insured, if something happens to them you can claim your money back. The only disadvantage is stamp duties. I once deposited 15,000 in the bank and after a month it was reduced to 14,100. They claim it's and charges, card maintenance, duties etc.

 

[Goodday]

When saving money in the bank, we have to always check the financial position of the bank before Investing just to minimize the chance of losing our savings. And for retrieving your savings, it depends on the country and how the law support that policy.

 

[Damismiling]

Disadvantages of saving money in the bank, although when you save in the bank your mind is assured of maximum security, but now adays keeping money in bank is not the best option, yes, reasons are as follows;
Commission and regular charges deducted from your account
Long process to get started etc

 

[gammarays]

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?

I think presently, there is a commission that protects customers deposit and takes over any bank that wants to fold up. Also bigger banks can buy or merge with smaller banks should they go bankrupt. There's also insurance covers for banks so you need not to fear about your money.

 

[Klashlly]

the disadvantage of saving money in bank​

They may have withdrawal limits or charge fees or penalties for closing certain types of accounts early. And keeping too much money in one account can put you at risk of losing it should the bank go under, depending on their insurance limits.
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the disadvantage of saving money in bank​

They may have withdrawal limits or charge fees or penalties for closing certain types of accounts early. And keeping too much money in one account can put you at risk of losing it should the bank go under, depending on their insurance limits.

 

[Pirate]

I can't really say there's a disadvantage in saving money in the bank.
The only problem is their weekly or monthly deduction of money or the bank facing bankruptcy.

 

[Chumzy]

Instead of saving money in a bank, one should look out for a business to invest in. Banks don't pay interest, or at least, they don't pay any reasonable interest. They use your money to make more money for themselves, why you make absolutely nothing from them. The risk of inflation reduces the value of your money, leaving you with less.

 

[Seun4luv]

Minimum Balance Requirements. Most savings accounts have minimum balance requirements or monthly maintenance fees.Low Interest Rates. Federal Withdrawal Limits. Access and availability. Rates can change.Inflation. Compounded interest.

 

[kayode10]

One of the disadvantages of holding money in the bank is that inflation will eat up your saving. The purchasing of your cash will remain the same while to price of the goods and services continue to go higher. I would rather look for an asset and invest my cash on it or convert my cash into Bitcoin and let it grows.

 

[GIFTMICHAEL]

The disadvantage of saving money in bank are as follows:
1. Unnecessary administrative charges.
2. Your money can be used to make business without your prior notice
3. Your money can be expose to fraud
4. You are no longer the one managing your money
5. Your money is entrusted to total stranger

 

[Donkiz]

Gone are the days when banks just fold up like that, these days banking sector have become more organized and well capitalized that the issue of banks folding up and customers money gone is no longer obtainable. Any bank that is no longer liquid enough to continue operating on its own, it's either the government bails it out or it is merge with a stronger band, or a bigger bank acquire it. In all these scenarios there will only be a change of management structure, name and brand, but customers deposits will still be intact.

 

[idhans]

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?

Recently I have started saving my money in perfect money account, or I use my Fiat to buy Bitcoin than saving it in the bank. In Nigeria our currency is very weak against dollar which causes your money to depreciate everyday

 

[Ltherman]

The major disadvantage of saving funds i. The bank is the declining value of money ad the days go by especially in 3rd world countries like ours where the fiat currency is loosing value or being devalued by the government itself.