Where do you keep your money?  If you take your treasure to the bank, you leave your heart there as well.  Use of home banks to save  is perceived uncivilized .  While stacking money at home is  unsafe,  many people do not realize that the banking system maybe equally unsafe. In some remote areas in African communities, some elderly people have been reported to have hidden money in very  hidden places where nobody would have guessed like in farm scare crows, holes where hares hide, edges of thatched roofs and digging holes in huts. Modern people use mattresses to hide money in form of notes.  You may have realized that when you deposit a specific amount of money in a bank, deductions like bank charges, ledger fees, excise fees  and account maintenance fees will be deducted periodically.

cash in mattress

Where Bank Takes Your Money

Many imagine that money deposited is stored in strong rooms and vaults where safety is guaranteed.


While that may be the case, the main goal of the bank is to have maximum utilization of the money deposited to make the most profit from it. The assurance of safety is simply the aspect of making the access of your money assured.  When you deposit your money in a bank, it could be to a fixed deposit  or to a current account.  Banks often offer an interest rate for a fixed deposit account. The banks often take the money to different investments  activities including lending it to other customers at a higher interest rates.  The difference in percentages of the borrowed amount, fixed deposit amount interest rate shows the amount left at the bank.


If you are carrying out business in a profitable business idea,  depositing money in banks is pure loss . many rich people use the money banked by the poor and the middle class to finance their  business activities while the poor feel safe that they have a lumpsum amount of money in the bank for a rainy day. It takes a short time for a person doing business to repay borrowed money than the  time taken for a poor person to accumulate a large sum of money in the bank.  Many working people are employed for years to gain cash from  pension schemes  but while that cash accumulates, the business people borrow and repay the sums equivalent to the sum gained from the pension unlimited times.  Banks invest such money in activities such as this. The Banks invest money in more profitable activities that are safer than common investments.

Money Markets

This is where your bank takes your money without letting you know that you could take it here yourself and earn interests safely without losing it. Its clear that we all fear loss, this fear leads us to thinking that the safest place to invest our money would be by depositing in fixed deposit accounts where it is locked for as long as 10 years or more for small amounts of interest that is further subjected to taxation. With as little as equivalent of  USD 10, you can join an online money market. If you do not have the expertise of trading online, you could use companies that accept deposits, trade with your money and get you back the money anytime you need it with interest earned. Such companies are so well versed with the system that you could deposit your money on Monday and withdraw it on Friday when it has earned you enough for the weekend. Money market mutual funds are bought by individuals at retail levels or investors and money market accounts opened by clients of different banks.


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