What are the disadvantages of saving money in the bank?

[Oliver 20]

Low returns​

Savings accounts typically earn less over a period of time than the cost of inflation. These low returns make saving at a bank a poor financial decision for the future. It may be a better choice to save money long term by investing it in mild and safe mutual funds.

 

[Taimoor Jutt]

Very rare disadvantages in banks. In my country there will be deduction of 600 rupees as withdrawal of more than 50 Thousands Rupees, so i mean we can not withdraw our rupees at once without deduction. Hence this is the only worrying thing or disadvantage in my views. Its because of new rules of Pakistani Banks.

 

[Donolatunji]

Least Balance Requirements. Most bank accounts have least equilibrium prerequisites or month to month upkeep expenses. ...

Low Interest Rates. ...

Government Withdrawal Limits. ...

Access and accessibility. ...

Rates can change. ...

Expansion. ...

Accumulated interest.

 

[Sariana23]

Does that mean that there is nothing the bank can do about this? It's simply unprofessional, if you ask me because people saved their funds in the bank most especially because of the trust that they have in those banks.

The bank declared bankruptcy, and with that it "washes its hands" it is like companies that operate for a period of time and when the time comes when they cannot continue, they declare bankruptcy and there is no way to make them pay their employees . Neither liquidation nor benefits

 

[Oliver 20]

Rates can change. Savings account interest rates are variable, meaning that financial institutions are free to set and change interest rates as they wish. High-interest savings account rates will stay largely in line with the movements of the federal rate.
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Rates can change. Savings account interest rates are variable, meaning that financial institutions are free to set and change interest rates as they wish. High-interest savings account rates will stay largely in line with the movements of the federal rate.

 

[Tayyabah]

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?

Well by my personal experience saving money in bank have many advantages as well asascompared compared as disadvantages.if we have emergency and need urgent money and unfortunatly our credit card or atm have linked down.we couldn't get advantage of our own money,of bank account banned r bank lost our savings also get lost.if we got loan in past and we save money in our account for bad time banks never think and take ur saving money from your account.
So we should.save money at home and we should.save our gold in bank.lockers as well

 

[GIFTMICHAEL]

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.

Excellent, I addition to this the disadvantage involve in saving money in the bank is unnecessary service charge and other unnecessary administrative charges.
Instead of your money to grow in the savings account they will be reducing as a result of charges.

 

[Aniwhyte]

If you have your money in the bank and the bank eventually fold up then you should forget about such money as it is completely gone, it normally happens in the past but not common nowadays, as for the disadvantages of saving money on the bank. Your money would be deducted little by little, most especially some little monthly deductions.

 

[Abbas007]

Usually bank is The Safest place To Keep Money. I Do Know Any Disadvantage of saving money in banks, except while withdrawal and Deposits , the process which we follow are sometimes difficult to complete. Second is we can't get money on vacations.

 

[Kinglegend01]

To a particular point saving money in the bank Is secure and it is even so If you are using a government bank. One of the disadvantages of saving money in the bank is that the savings has little or no interest on it.another disadvantages is known to private banks whereby banks are seen to be collapsing and conducting alot of malpractises which eventually causes bank failure.

 

[Frank]

The bank declared bankruptcy, and with that it "washes its hands" it is like companies that operate for a period of time and when the time comes when they cannot continue, they declare bankruptcy and there is no way to make them pay their employees . Neither liquidation nor benefits

That's really bad and evil. Over here in my country, all the banks are insured and no bank can declare bankruptcy without having to pay off all the customers. This move has restored the confidence many people have in the banking sector and to be honest with you, I can confidently deposit any amount of money in the bank and sleep well at night.

 

[Emma Aneni]

The disadvantages I know and what I’ve experience is that you tend to use money often even for irrelevant things especially when you have your atm card with you, you can be anywhere and decide to spend ravishly.

 

[Sariana23]

That's really bad and evil. Over here in my country, all the banks are insured and no bank can declare bankruptcy without having to pay off all the customers. This move has restored the confidence many people have in the banking sector and to be honest with you, I can confidently deposit any amount of money in the bank and sleep well at night.

Excellent, I wish I could say the same. Although today there are reliable banks, it is not known what may happen overnight. In this case it is not a good idea in my country either, due to the inflation we currently have, I deposit an amount of money with a certain value and next week it has another diminished value.

 

[Oluwatobitomisin]

Saving Money in the Bank has it's Disadvantage but I think it's Advantage is more than Disadvantage.
If you Save in a Bank that might run into Liquidation in few months from the time you Save then your Savings isn't secure.
Monthly charges by the Bank might be on the higher side

 

[Meerab]

Saving the money in the bank is not a disvantage bt i think we have to invest our money in busuness instead of saving in banks.. .. Because investing gaves us profit daily monthly n yearly inspite of saving.... Bt some time bank saving too are very helpfull..

 

[Sammyesx]

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?

Most times when a bank is in crisis what they do is to merge with another bank or the bank is sold to another bank that way people are still able to get back their money, the only downside about saving money in the bank is devaluation and that will take a long period of time before it will have significant effect on your money.

 

[Noor khan]

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?

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.

 

[Nma]

The disadvantage of saving money in the bank in my area are so numerous.... you can't save money in the bank and collect the money completely when you need it to solve your personal problem.... They would have deducted unnecessary charges from it which is very annoying.... The interest rate is also very low and nothing to write home about

 

[Hasan Raza]

Saving money in banks is not good because your money bounds. 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.

 

[Chumzy]

Saving money in the bank is for old people who wants something during retirement. But for young people who still have the body and brain to work and earn, investment is key. When you save in a bank the bank uses it to trade and earn money online from it and pay you almost nothing.