Savings Security in Banks
Are your bank savings safe?
Mention savings security in banks and you are likely to have visions of a heavy steel vault amid tight security. This is a picture that has been ingrained into your memory since childhood – a picture of safety and security. But how secure is your money that you’ve deposited in the bank?
Let’s go through what can hurt your money quickly and you make your own judgement and due diligence.
1) Deposit Insurance. There is always a limit to the amount of money you can put into a bank that is secured by the country’s Bank Deposit Insurance system. If you have exceeded the technical amount, and the bank goes under, you could be out of luck for the balance. And there is always a danger that you may not be covered too…read more.
2) Inflation that eats away at your money. The value of your savings + interest – taxes; will likely mean you are not getting ahead of the value of money you had put into the bank after a number of years…read more.
3) Online Security. Thieves no longer need to get into the vault to get your money anymore. Did you realize that most of the “money” is only a statement on a computer? Much of the banks’ deposits is not cash at all. Therefore the strongest security will be required on the internet, not in that super steel vault – which are really just smoke and mirrors in many cases. Giant vaults are for storing valuables these days.
4) Invested cash exposed to market forces. Are your investments properly spread out or are they only in one place – all the eggs in one basket? Also, always spread all your money in various places. For example, buy a number of smaller homes rather than a big one…read more.
5) Banks will always raise fees on you to make more money. Check that your charges like ATM or service charges are understandable and in keeping with what you had expected. If not, raise hell. Ask if they have other paskages more suited to your use…read more.
6) Keep your profit hat on. Continue to monitor your savings and your attached investments closely. It’s surprising what profit opportunities you can find if you do. Likewise, you can find that something going amiss with your investments too…read more.
7) Bank being a jerk? MOVE! Be prepared to move your account to another bank if you or your money is not being well treated. You might consider using private banking instead of the retail banking. This will abode well for any future financial emergencies…read more.
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