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In theory all banks should be safe places to put your money into. Reality is though no banks are 100% safe. The issue is what banks do you trust to put your money into? What kind of money are you talking about? If it's a huge amount then you need to talk to a banks senior manager about the security and safety of your funds. If it's just someplace to have your paycheck come to through direct deposit or its a couple of thousand dollars you're trying to hold on to then just talk to a teller or someone who handles that kind thing. The bottom line is that it just depends on what you're trying to do with the money that you have; and which bank can meet your financial needs while providing safety.
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Is a home safe as secure as a bank safe deposit box?
No. Definitely not. A Banks safe deposit box is much much safer than a safety deposit box in a home.
Why would someone save there money in a financial institution?
There are two main reasons as to why people would save their money in a financial institution like a bank. They are: a. For safekeeping. Keeping a lot of money at home is not safe whereas banks and their vaults are very safe b. To earn an interest - Banks pay us an interest for having us deposit our money with them. This is an added incentive for people to park their savings with banks.
Banks lend out the money that you deposit to make a profit?
Yes.
What keeps you bank deposites safe?
The Central Banks of the countries ensure that the money deposited in the banks in their country are safe. For Ex: Reserve Bank of India for India and Federal Deposits Insurance Corporation for USA ensure that customers do not lose out on the money they deposit in their bank accounts and that banks pay back customers every rupee/dollar they put into their accounts.
How did the creation of the Federal Deposit Insurance Corporation (FDIC) help end the banking crisis?
It's important to understand that banks don't hold on to all of the money that is deposited at them: they loan it out, and then some of the interest from those loans goes back to the deposit holders. They can do this because, under normal circumstances, not everyone is going to withdraw all of their money at once. By the time the bank needs to give people their money back, they'll have made it back from loans. But during the Depression, people were withdrawing so much money from banks that the banks ran out of money. That happening caused people to panic and withdraw money from banks, because they saw that it wasn't safe there, and that in turn caused more banks to collapse. The FDIC essentially exists to ensure that this can't happen. As the name implies, they insure your deposit. That is to say that if you try to withdraw money from a bank and the bank doesn't have it, then the FDIC covers it. Because of this, people felt safe putting their money into banks again.
What is a safe deposit receipt?
A safe deposit receipt is a receipt for the payment of renting a safe deposit box at a bank. Some banks charge a monthly fee for this type of safe.
Is a home safe as secure as a bank safe deposit box?
No. Definitely not. A Banks safe deposit box is much much safer than a safety deposit box in a home.
What are the roles of deposit money banks on the economics growth of nigeria?
The role of deposit money bank in nation
What does the Fed do for commercial banks?
The main thing the Fed does is that it is the Bank that Banks deposit their money in.
Banks lend out the money that you deposit to make a profit?
Yes.
What can you do if your bank was robbed?
You don't need to do anything. Your bank was insured by the Federal Deposit Insurance Corporation (FDIC) and your money will be replaced. If the banks safe deposit vault was robbed and your personal valuables were stolen, that is another matter entirely and would be handled by the banks private insurors.
Why would someone save there money in a financial institution?
There are two main reasons as to why people would save their money in a financial institution like a bank. They are: a. For safekeeping. Keeping a lot of money at home is not safe whereas banks and their vaults are very safe b. To earn an interest - Banks pay us an interest for having us deposit our money with them. This is an added incentive for people to park their savings with banks.
What keeps you bank deposites safe?
The Central Banks of the countries ensure that the money deposited in the banks in their country are safe. For Ex: Reserve Bank of India for India and Federal Deposits Insurance Corporation for USA ensure that customers do not lose out on the money they deposit in their bank accounts and that banks pay back customers every rupee/dollar they put into their accounts.
How did the creation of the Federal Deposit Insurance Corporation (FDIC) help end the banking crisis?
It's important to understand that banks don't hold on to all of the money that is deposited at them: they loan it out, and then some of the interest from those loans goes back to the deposit holders. They can do this because, under normal circumstances, not everyone is going to withdraw all of their money at once. By the time the bank needs to give people their money back, they'll have made it back from loans. But during the Depression, people were withdrawing so much money from banks that the banks ran out of money. That happening caused people to panic and withdraw money from banks, because they saw that it wasn't safe there, and that in turn caused more banks to collapse. The FDIC essentially exists to ensure that this can't happen. As the name implies, they insure your deposit. That is to say that if you try to withdraw money from a bank and the bank doesn't have it, then the FDIC covers it. Because of this, people felt safe putting their money into banks again.
How did the creation of the Federal Deposit Insurance Corporation (FDIC) help end the banking crisis?
It's important to understand that banks don't hold on to all of the money that is deposited at them: they loan it out, and then some of the interest from those loans goes back to the deposit holders. They can do this because, under normal circumstances, not everyone is going to withdraw all of their money at once. By the time the bank needs to give people their money back, they'll have made it back from loans. But during the Depression, people were withdrawing so much money from banks that the banks ran out of money. That happening caused people to panic and withdraw money from banks, because they saw that it wasn't safe there, and that in turn caused more banks to collapse. The FDIC essentially exists to ensure that this can't happen. As the name implies, they insure your deposit. That is to say that if you try to withdraw money from a bank and the bank doesn't have it, then the FDIC covers it. Because of this, people felt safe putting their money into banks again.
How do banks benefit from people with savings deposit?
The banks loan out the money on deposit at higher rates of interest than they pay the depositors. Since most people keep their savings on deposit for long periods, the banks are able to do this. If everyone came at once and asked for their money, the bank would fail.
What is the fee that banks pay a fee to use your money?
Deposit interest.
