Is It Good To Have More Bank Accounts
Bank collapsing is nothing new, we have seen that in tha past too. Here in India, we have also seen some of the banks collapsing because of their bad financial decisions. But the reality is the people whose deposit is in Bank are the most affected. Though some of the money you keep in bank are secured so even if the Bank collapses you will get that much money back.
PC: Pixabay.com
But the problem is that secured amount is not that big a amount. So if you are keeping $100 in bank and only $50 is secured and if the bank collapses, your $50 is gone. Wouldn't it be good if you start keeping that $100 in multiple banks, say for example 2 with $50 in each bank. In that way if one or both collapses, you will have the $100 secured.
I know keeping the money in the bank is not the ideal way. You should invest, but there are thousands of people who are retired who does not want to take a risk in investing, for them the best bet is to keep in the bank account in Fixed Deposit. And there are many who out of fear does not keep the money invested. So whatever is the case, we have considerable amount of people who is keeping their money in bank.
For then bank seems to be secure. Yes there are some public sector banks which will be secured always, like SBI in India. But again these banks comes with their own problems. Some banks offers great interest on savings account and thus keeping money there is again great too. So in my opinion we should start keeping multiple bank accounts, most of the funds should be in the government owned banks, and the other should be distributed between 1 or more private banks.
I have around 3 bank accounts and the money is nicely distributed among all the 3 bank accounts.
Posted Using LeoFinance Beta
https://twitter.com/2613889627/status/1642745986077585409
The rewards earned on this comment will go directly to the people( @codingdefined ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
You are right here! Having more Bank accounts is a way of securing your money in case disaster hits one of the Banks. Good investment strategy!
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
I think that's a good strategy, especially putting money in the government owned banks. Losing half of the money when a bank crisis happens can be devastating. I have only a few bank accounts and they're all in private banks. Maybe it's time to diversify more...
I'm in Canada and all bank deposits are secured 100% up to 120,000 or more for credit unions. I don't have more than that amount so I could be with only one bank and be fully secure.
However I have at least 7 bank accounts.
One because it has very convenient location. Another because it offers free safety deposit box. Another because it offers a debit card with cash back. Another because of high interest on savings. Another because it's app makes bill payment very easy.
Unfortunately many bank accounts makes keeping track of money more difficult and more work to watch them all.
Liked your post. You are right to spread the risk around for sure. Just wanted to point out there are other good reasons to have multiple accounts 😀