Are you keeping money in the bank?

Discussion in 'Financial Planning' started by ziskasun, Jul 4, 2016.

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  1. ziskasun

    ziskasun New Member
      8/23

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    I am wondering about other people's thoughts about keeping money in the bank. I try not to think about it but I have a little money in a 401 K and I wonder how safe that is. It hardly earns anything. I also have a little in a credit union but I noticed they charged ME .22 cents last quarter for the privilege of keeping my money there. That just seems un-productive to me. I want to have the money available to me at a moments notice if I need it and I not sure what would be the best way to do that. Any ideas?
     
  2. cluckeyo

    cluckeyo Well-Known Member
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    I do keep money in the bank, and I have everything set up to auto-draft each month so my bill-paying task is practially nill. I keep a favorite rewards credit card and use it for almost everything. I get a cash back reward and I pay it off in full each month. I even pay my utilities with that card. It's very handy, but you have to be realistic and not over-spend.
     
  3. crimsonghost747

    crimsonghost747 New Member
      8/23

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    Seeing as you want it available immediately, that pretty much limits your savings to basic bank accounts. You might also have the option for some higher interest accounts where you can still transfer the money immediately... I've got one of these and I'm allowed 4 withdrawals per year. The interest rate is slightly better but let's be honest here, with the current interest rates it's still nothing. But this is where I keep my emergency fund since it's accessible and safe there.
     
  4. amelia88

    amelia88 Well-Known Member
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    I do keep money in the bank - I do have some bits and pieces scattered in strategic locations in my house, too, and I have things I could sell off (physical goods) if I really needed to. I know that there have been bank collapses in other countries, I guess I think to myself that it's not going to happen here (I guess that can be something of a dangerous mentality to have!)
     
  5. pwarbi

    pwarbi New Member
      8/23

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    The bulk of my money is kept in two separate accounts with two separate banks, but I also have an emergency fund at home that's locked in the safe, and I also carry a bit of extra money around with me just in case I ever need more than I'd expect. there seems to be a lot of people these days that don't trust the banks and financial institutions, and while I can see why, at the moment I still think they are the best places to keep your money even though they aren't as reliable and trustworthy as I think they once was.
     
  6. John Snort

    John Snort Well-Known Member
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    Then you could invest the money in a business that will earn your profits fast. Of course it's riskier but if you are lucky (yes luck does count) you could be making a lot more money from your business. More than the interest you'd get if you left the money in an account for decades. And good thing is if you wanted to get your money back, all you'd have to do is sell the business.
     
  7. FuZyOn

    FuZyOn Expert Member
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    Pretty much, I have my retirement and emergency fund stored at the bank. That being said, I don't keep all my cash stored in one account at the bank, I have various debit credit cards and I keep money at home as well. It's good to always be prepared in case a financial disaster happens.
     
  8. remnant

    remnant Expert Member
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    I used to keep money in the bank when a certain institution I worked for required us to do the same. I have been connected to mobile money transfer applications and I can access banking facilities like withdrawal and account balance confirmation through my mobile phone meaning that I require discipline to save. I have about 4 bank accounts which I activate when need to use the same arises.
     
  9. pwarbi

    pwarbi New Member
      8/23

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    With the amount of technology these days seemingly increasing more rapidly than ever before, more and more people are using the mobile banking sites and apps, and it IS making it harder to save for the future. Saving for a specific occasion often requires a lot of self discipline, and while in the past our savings accounts used to be practically untouchable, these days we can access them and whats worse, transfer out of them at a touch of a button or the swipe of a finger.

    One of the main reasons that people in the past haven't kept money around the house is because it as too tempting to dip into and spend, but now even though our money is in the bank it's all too easy to spend it on things that in the past we simply wouldn't have been able to in the same way.
     
  10. crimsonghost747

    crimsonghost747 New Member
      8/23

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    You could always just create a savings account that you can't withdraw from. :p In fact some banks should have these, either so you can't withdraw anything in the first year or two or so that you can only withdraw a certain amount of times. You should be able to find these, and they should have slightly better interest rates than regular accounts.
     
  11. AnnaBanana

    AnnaBanana New Member
      8/23

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    I feel very uneasy about saving money in my bank accounts. I have some money stashed in a safety deposit box. I'm not sure if that is any wiser, though.
     
  12. gracer

    gracer New Member
      8/23

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    It has always been my practice to save a portion of my monthly earnings in the bank. I guess it's because I have gotten used to having a bank account and saving money that's why it's the first thing I think of every time I receive my salary. Banking has basically been a regular part ofmy life and I don't know how I would ever feel if I don't have savings in the bank. :)
     
  13. CarlosTL

    CarlosTL New Member
      3/23

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    I don't think it is an exaggeration to say that only a fool would keep all of his money in the Bank. I keep a minimum, the bare necessary. I absolutely do not trust the system. They could either just take it for whatever reason and then you, as a "little person", have to go against this huge institution or the system can just render the cash you own virtually valueless by means of inflation or government-induced crises. So no, my money is kept under various income-generating investments.
     
  14. Vinaya

    Vinaya Expert Member
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    I have some money in the bank which I use when I have to; for example, to buy groceries, do shopping, pay utility bills, buy gas etc. When I earn money,I send it to bank and I use it as needed. However, I don't send money to the bank for saving purpose. I prefer to invest instead of saving in the bank account. Saving in the bank can get you less than 4% per year, however, investment can get you more than 10% in average.
     
  15. pwarbi

    pwarbi New Member
      8/23

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    You are right of course and there are a lot of banks that have accounts that you aren't allowed to withdraw from for a set period of time, but I don't want the banks to be able to control when and how I can get to my money, that's the problem. If for example I think the economy is going to collapse and I've got thousands saved up in an account, I'm going to want to get that money out of that particular account as quickly as possible, and I don't want a bank saying you aren't allowed to withdraw it until 6 or 12 months time.

    6 or 12 months down the line comes, the economic collapse as happened and my thousands I had saved up is now worth about 10 dollars!
     
  16. gracer

    gracer New Member
      8/23

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    I agree with you. You're even very lucky to be having at least maybe 3% interest per year. Here in my country, we only get dimes for the money we put in the bank. Would you believe that we get less than 1% each year? So basically, money in the bank here only sleeps and loses its value. The wiser ones only keep a portion in their bank accounts and put the bigger portion of their money in stocks or various investments. I do save every month in the bank for emergency purposes but I have learned to invest now that I have grown older.
     
  17. pwarbi

    pwarbi New Member
      8/23

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    The interest you get from keeping your money in the bank isn't really the main reason to use them I wouldn't have thought, unless you're already a multi-millionaire. Maybe then you'll be able to get special interest rates as I'm sure you'll be classed as a more valuable customer than somebody like me is. For me, keeping my money or part of it anyway is more about the security aspect of it, and I simply wouldn't feel comfortable having every penny I own kept in the house.

    I don't necessarily trust the banks, but I trust the drug users and the various other criminals around the neighbourhood even less!
     
  18. BRC814

    BRC814 New Member
      3/25

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    Being an Indian depositing money into a bank would be my first preference. Unlike in US, Indian banks provide minimum of 4% interest per year on checking accounts (yes you heard it , we call these as salary accounts) or savings accounts and for Fixed deposits interest rates vary from 6 to 7.5 % (it was up to 8.5% before demonetization happened in December'2016).
     
  19. Old Geezer

    Old Geezer Legendary Survivalist
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    I propose an experiment. Everyone send me a bunch of money. We will all find out if old geezers deposit their money or spend it on liquor and strippers.

    OK, OK, stop laughing.
     
  20. kismat

    kismat New Member
      1/25

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    obviously, yes I am keeping my money in the bank and it is the safest place to keep money there is no tension of theft. I am having bank account since I was 14. I bank provides many subsidies and different schemes. The biggest benefit is that I am receiving interest on my savings. Keeping money in the bank helps the nation a lot, it helps to increase the GDP of the nation and helps to calculate the national income of the nation. And it is the safest place. Bank provides you many facilities to you and you should always take benefits that the banks provide to you.
     
  21. sanny99

    sanny99 New Member
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    Obvious and the money that I have in the bank which I use when I have to; for example, buy products that I am interested to have doing shopping, pay utility bills, buy gas etc. When I earn money,I send it to bank and I use it as needed.
    I am keeping my money in the bank and it is the safest place to keep money there is no tension of theft. I am having bank account since I was 14. My bank provides many subsidies and different schemes. The biggest benefit is that I am receiving interest on my savings. Keeping money in the bank helps the nation a lot, it helps to increase the GDP of the nation and helps to calculate the national income of the nation. And it is the safest place. Bank provides you many facilities to you and you should always take benefits that the banks provide to you.
     
  22. Koala

    Koala Well-Known Member
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    My ways are: I keep half at home, hidden and the other half I automatically store in a bank. So whatever I earn I split in two.

    I don't know but I feel safer knowing I have some cash in the house for urgent needs. I use the bank money for credit card payments - gas, food, basic hygiene and such.

    I don't use the bank for interest rates because they're so minimal it really isn't worth it solely for that. I have a partner that works at a bank though :)
     
  23. Corzhens

    Corzhens Master Survivalist
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    This is not to brag but I am a bank officer so it is expected of me to trust banks (not necessarily our bank). I have several bank accounts with each one having a purpose. I have one for my personal expenditures, another for the household needs, one for miscellaneous, and lastly for emergency which also serves as my lifetime savings. For me, the bank is the safest place to put your money because it is regulated by the government. As of now, the banking industry is stable so I don't see any problem as regards bankruptcy.
     
  24. Jack Frost

    Jack Frost New Member
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    Things can turn pretty quickly into a financial collapse. Look at the Recession, how things went downhill overnight; or historically, the Great Depression. If you look at recent events in Argentina, it is unwise to keep money in the banks. In Argentina, the government took everything right out of the private bank accounts to pay national debt obligations. Greece is another example of how the government will step in with regulations that prevent people from accessing their money in tough economic times. Our economy is based upon the same fiat banking practices as Nazi Germany. There is no intrinsic value to the currency. Therefore, it will become utterly worthless, if a real disaster did happen.

    Alcohol and weapons will become hot commodities in an apocalyptic scenario. Alcohol, chocolate, coffee, maybe even marijuana these days; would all become mediums of exchange.
     
  25. WildSpirit

    WildSpirit Active Member
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    Yes, I keep my money in the bank and I think this practice should be used for anyone who really wants to save some good money for future plans.

    It's the smartest choice because besides leaving the money in an extremely safe place, the amount deposited still usually yields an additional value because of the monthly income (it's easy money with no effort :D).
     
  26. Scarlet

    Scarlet Member
      23/29

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    Yes, but we all know that we gain little interest in the bank. Although it's safer there because it is insured but if we want our money to grow then invest it into business. The bank is just there to protect our money being robbed at home and it's not a place where we could gain big interest.
     
  27. zeedollar

    zeedollar New Member
      8/29

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    All my money are usually kept in the bank because i cant think of a safer place to keep them. At times the bank charges are usually annoying but come to think of it, if your money was stolen because of not having to keep it in the bank, that would be far worse. But the bank is usually the best bet to keep your money overall.
     
  28. Maria_C

    Maria_C New Member
      8/29

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    The charges can be annoying sometimes but yes it isn't at all advisable to keep such sum at home. I'll advise you visit your banks branch and look at your options for safe keeping and at the same time accesibility when you need it.
     
  29. lonewolf

    lonewolf Legendary Survivalist Staff Member
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    yes the bank is the safest place to keep money-until the bottom falls out of the banking industry, back in 2008 when we had a recession a few banks had to be bailed out by the taxpayer and at least one bank (Northern Rock) went bust, so for people who banked with them it WASNT the safest place.
     
  30. streettallest

    streettallest New Member
      6/29

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    keeping money in the bank is still the best option available to anyone. This is because of safety and peace of mind it brings. we dont expect the banks to keep the money for us at no cost or do we?
     
  31. zackdsilvis

    zackdsilvis New Member
      3/29

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    I try to haha..I do invest in safe stocks and it makes me about 10-20% a year back so it's okay. I need to start investing in other things like silver, gold, etc..
     
  32. Rhodolite

    Rhodolite New Member
      8/29

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    Money's in the bank for convenience. That being said I'm not a fan of them keeping it because they use our money to trade which is what happened in the depression and they couldn't pay back when people wanted to take back their money (bank run) and the recession again showed the shaky standing that banks have. The FDIC isn't really much insurance these days. Don't forget the largest bank failure from the 2007 recession- Washington Mutual which lost over 300 billion alone...which far exceeds FDIC's 100 billion line of credit. It's a catch 22. Keep it at home you get robbed SOL. Keep it in the bank, another recession happens, bank runs happen and because banks don't keep your money physically as cash you're SOL cause it's tied up in other people's mortgages and loans.
     
  33. BethSztruhar

    BethSztruhar Member
      23/29

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    Yes, I keep money in the bank because that's the safest thing to do. It's always available for me tho, if I need money quickly I just have to go to an ATM and I can have it. Sure the fees bother me, but there's nothing I can do about it.
     
  34. overcast

    overcast Member
      23/29

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    My work money goes directly into the bank. This way you don't have to worry about the cash being stolen. The are where I am living these days is not that safe. So it's good option in such case to keep the money in the bank. And this way I don't have to worry about the cash loss. I guess we can see that money in the bank is lot safer for many of us.
     
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