Categorized | Save Money

Are Your Savings Safe In A Bank?

During the recession, many banks went under. Some of the most iconic images of the whole affair were the huge queues of people waiting to withdraw their money from their accounts. This has lead to an understandable anxiety in the public imagination, namely the idea that in a bank our money is not safe.

It used to be that everyone had a similar idea as to what a bank actually did. There was a sense that when you gave your money to a bank you were giving it to them for security. They would look after your money, using it for their own safe investments, and in the long term everyone would profit.

But a string of irresponsible lending and buying by banks meant that some of their investments were not sound. As a result, they could no longer guarantee the savings of their customers. Now everyone is a bit anxious to completely leave their money in a bank, and with good cause.

As an average saver, there are several things that you should be doing. In this harsh financial climate, you should generally consider none of your investments to be completely safe. And you should consider your savings account with a bank to be a form of investment. Of course, it is an investment that is predicated on security rather than returns, but it is an investment nonetheless.

As well as having a savings account, you should also be looking to find some reliable investments outside of a traditional bank. You should read some Regal Assets reviews, for example, and maybe then consider an investment in gold and silver. In the same way that an IRA is promised as a long term investment, so too are gold and silver.

In order to keep the money that you have already banked safe, you should also do some reading up on your rights. After the crash, there was plenty of legislation passed to ensure that savers are no longer held accountable for the actions of the banks. If you do your research and know what it is that you are entitled to if your bank is in trouble, then you will have more peace of mind and less difficulty when any trouble comes around.


Source: Flickr

You should also be aware of the practices of your bank. Many different banks invest in different ways, and some of these are more risky than others. As a consumer, you should be thinking about what has just happened in the world of finance, and you should be wary of any bank that has not learned its lessons. Have a read around the general literature on the bank, and try to find out whether the government believes that they have been behaving responsibly with savers’ money.

The general advice here is to be aware and wary. The whole world sleepwalked into a financial crisis, and so it is up to all of us to make sure that the same will not happen again. As a saver, however, you should be aware that the ultimate responsibility to keep your money safe will fall on your shoulders.

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