We have gone pass the ages of keeping money in our homes or having a closet filled with cash, even little children now have bank accounts and with the great number of people opening bank accounts every day, the bank is becoming a place for both the rich and the poor, as more people are using the bank more financial institutions are coming up every day and these financial institutions are making money massively. Before you choose the bank as a place to safe keep your money, I think I should let you know some of this facts.
Your money saved at the bank is not safe from inflation.
Inflation is not a friend to the growth of our money and irrespective of the profit range promised on the money you have at the bank, it will not be safe guarded by the high rate of inflation. The rate of inflation every year is greater than what we have as the profit rate that the bank promised us, the rate of inflation is really high and gets higher all the time. The money you have saved at the bank for a particular purpose will not be enough for the purpose by the time you get it out.
Banks always charge for every of your purchase.
There is a transaction fee attached to everything you buy either you are making transfers or you are paying with your card, even if you are not charged directly the retailer whom you are buying from will be charged and will in turn charge you for the transactions either directly or indirectly.
High interest rate on loans.
Even if it seem that the bank can come to our rescue in terms of loans any time that we need them, we must also be reminded of the fact that these loans come with high interest charges, the charge on interest loans makes it very difficult for the purpose of the loan to be accomplished especially when it is used by business owners.
Banks uses your saved money for transactions.
The truth is that banks use our money to carry out transactions that will make them more profit, if something happens and every one demands their money at the same time there is a very great probability that no one will be able to get this money at all, banks do not have anyone’s money saved up somewhere but they place them in other places where they can use it for better profits and transactions.