Benefits and Disadvantages Of Saving Money In Banks

Since a long time banks are serving us with their services and we are using them with ease. In ancient times people use to pack their jewelries and gold in a box and hide them it a certain place. But today every place of land is known to humans we cannot say that this method will work. So in order to save our money we keep it in bank. There are some people who still doesn’t trust banks so we have gathered some advantages and disadvantages of saving money in bank.

Advantages

There are many advantages of saving your money in bank. Using you has your business or earning but a well managed capital is the best thing to have. San Francisco Bank can help you in doing this. Banks not only keep your money safe but they will also give you the benefit of interest rates. Another benefit that banks provide is ability to transfer money from one account to another. In this system you don’t have to visit bank because you have been provided with a online banking system. So use it and transfer money.

1. Since banks are certified from FDIC we can trust over them that they will keep our money safe.

2. If you deposit money in bank then they will pay you for that they can pay you 6 or 7% of interest.

3. You can opt for a loan in case you need urgent money in case of any emergency. Bank will look for your back record and they will give you a loan.

4. You can opt for credit card though you have to pay the bill back to bank but atleast in case of emergency you can use that credit card.

Disadvantages

Obviously hand over your life savings in someone else hands feels like foolish it is not the best financial move due to loss or theft. But keeping money in home prevents it from gaining interest.

Banks will charge you a good amount of fees for using their services like locker rentals, debit card rentals, etc.

There is one more method to save your money and that is you can opt for credit unions. But you need to have an account with cooperative. You can easily run your own cooperative society and earn good amount of profit from it. since these unions are non profit the members are paid a good amount on the deposits they make.