What are the disadvantages of saving money in the bank?

[Shahid Abbas]

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 don't think there are any more disadvantage of save money in bank, if you fix your money, then it is big advantage because you can get the profit that you deposited or fix the money, I think its not any disadvantages to save money in bank.

 

[Hdre3m3n]

Saving money in the bank is not the best at the moment. The yearly interest for saving money in banks is very low compared to saving in crypto currencies wallet where the interest can double your initial savings

 

[EMMANUEL]

Minimum balance requirement: you will be require have a particular minimal balance.
low interest: most of all bank now a days have now decided to prohibit interest rate but i know of a bank that give me interest every month based on the amount of money save.
Inflation: is the general increase in the price of commodity or goods and services.
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Minimum balance requirement: you will be require have a particular minimal balance.
low interest: most of all bank now a days have now decided to prohibit interest rate but i know of a bank that give me interest every month based on the amount of money save.
Inflation: is the general increase in the price of commodity or goods and services.

 

[Yewande]

For a start I'll like to state that keeping money in the bank gives you guarantee of safety. But you'll hardly make any interest on it. Unlike saving the money with some platform or investing it online.

 

[Lekan]

I don't think their Is disadvantages I saving money in bank .but the thing is when you don't use the popular bank that is everywhere in this word it may have some errors in your money but still yet you will go and complain and they make sure the correct it back .it is bank you can track back your money that was stilling in your bank so I don't think their is any disadvantages in savings money in bank.

 

[Shigobad20201]

Its easier to save money in bank cos banks are closer to me , but the only problem is that scammers are now everything transferring peoples money from their acct like magic and some banks too charges too much if you deposit , people are getting tired of banks now, 90% of the youths prefers online banking

 

[Herzhan]

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 charges is the worst thing of saving money in the bank. If you save money in the the bank, you may have to see deduction from your account. Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.

 

[jay]

The major disadvantage is the accessibility of your savings when you've kicked the bucket. This is common when no one have prior knowledge about your bank details and as such no family can actually walk in and be granted access to the money.
The second is the low interest they gives at month end which is constantly decreasing as inflation is hitting the country.

 

[GIFTMICHAEL]

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.

You are right about your understanding of the trend of disadvantage of saving money in the bank. The disadvantage is that banks some times collect customers money all in the name of service charge. They charge money for sms we do not ask them to send the us and they charge administrative money as well. Sometimes when you transfer money they still charge you for doing so.

 

[Ziki]

The most important reason not to save your money in the bank is inflation.

While this may seem obvious to some.
Please allow me to explain: First of inflation, Simply put is the rate at which prices go up.

Every year in Nigeria, the moment inflation is 11% this means that on average an item that costs a hundred naira this time last year now costs 111 Naira today that's 11% more that's an oversimplification.

Because 11% is the average across various categories of things you could spend money on for some items like telecoms and data it's lower,

while for others like food items say a loaf of bread or a bag of potatoes it's higher.

So how does this affect your savings in the bank good question.

When you keep money in a savings account the bank pays you interest on that money this would be a good thing except that the interest rates are usually minimum at about 4% of 6% at the most.

This means while your money is growing at 4% span, things are getting more expensive at 11% every year that's almost 2 or 3 times the interest being paid on your savings.

In other words assuming your bank pays interests at 4% and inflation stays 11% what your money can buy is reducing by 7% every that's essentially the difference between inflation on your savings account interest rate.

 

[Nimra Noor]

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?

Disadvantage of saving money in banks is that there are many charges that they allow on us let's sppose if we have deposit 1000$ then at the last of month it will remain 900$ or less due to many charges but if banks folds up it's also become risk for us so we should have to invest money in some business rather than saving in bank

 

[Mikomataracy]

The disadvantages of saving money in the
bank are:
(1) Low interest:The interest receiving from the bank after one might have kept his/her money in the bank for long tend to be very small compare to the huge amount saved.
(2)Some banks have Minimum amount that must remain in the bank Account which means you can not withdral all the money you have saved.
(3) Federal withdral limit I.e you can not withdral more than the limit specifyed.
(4) Access and availability: To access your money some times use to be very difficult a time.
(5) Interest charge on each transactions some time use to be much.

 

[Kiwi]

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

 

[Zubair]

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.

Every time I feel bank the safest place to keep money. Because I know that no one can snatch it from me and would be kept safe by bank. But as you talked about folds up, I think our money would be returned to us. They would never loose their customer and don't want to creat bad impression about their bank. So money can be retrieved back. But I told what I think, because I don't have such an experience yet.

 

[Shivay]

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?

That question can in my mind when i was 12 years old. In my country saving money in banks is really safe , if by chance bank got fire or some unexpected event , the government will pay the money which was lost in that event otherwise the bank is the safest option in today's world.

 

[Xerryl]

It's advisable to only save money in internationally recognized 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

 

[Lagazine]

Saving is a very important aspect in all aspects of all human life. Savings helps in managing emergency issues. But saving money in a bank is not a good idea because they make use of the money and still charge heftily. Saving in digital wallets is more preferable.

 

[LaylaG]

I do not see any serious disadvantage of saving money in the bank because a bank is a trusted organisation that government approved for everyone to save money so if the government has approved a particular bank and is operating in a particular location then there's nothing wrong with saving money in it.

 

[Lyrrex]

Every time I feel bank the safest place to keep money. Because I know that no one can snatch it from me and would be kept safe by bank. But as you talked about folds up, I think our money would be returned to us. They would never loose their customer and don't want to creat bad impression about their bank. So money can be retrieved back. But I told what I think, because I don't have such an experience yet.

Well, whatever works for you is still cool. I would prefer to save my money in stable coins like USDT or bus, and store them in my private wallet, rather than leaving it in the bank.

 

[Richmond funke abosede]

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
Saving does have downsides though. Due to inflation, the money you save will decrease in value each year. If you earn interest, that interest may partially offset the negative effect of inflation. Unfortunately, interest rates rarely keep up with the rate of inflation.