All of us, especially those who have a few gray hairs believed that when we went to the bank and put money in we were actually storing the money in a poor, but very safe area
But that is not correct in today's banking system ---
When you put money in the bank you are investing IE lending money to the business, so if they go bad you do the same -- go broke, you are not putting your money into a bank at all
Definition :-
banked, bank·ing, banks
v.tr.
1. To deposit in a bank.
2. To store for future use.
The banks especially in Australia have changed the rules
Deposits'
The deposit itself is a liability owed by the bank to the depositor, and the word refers to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and makes a cash deposit, he surrenders legal title to the cash, and it becomes an asset of the bank. In turn, the account is a liability to the bank.
Therefore it is not as the definition says :- to store, it has changed to "a loan"
Then the next hit if you put money into a term deposit you have to give 30 days notice if you want to withdraw it for urgent requirements, sickness etc.
If you ask about this you will be told it is a law to protect your investment, but it is not to protect you but to protect the bank, it is to bolster the cash holdings of the bank, a requirement that the government has recently increased and the banks comply with it by stopping people from withdrawing funds in the event of a run or downturn on the bank
Our government has also put legislation in place to allow the banks to take your money legally if the bank suffers a downturn in profits !
The government does have an insurance policy in place to protect some of the deposits but it is not over all deposits and does not cover all banking institutions
So the sad story is if the government hasn't taken all your money in taxes, you may as well put it under the rose bushes where it will be safe, cause it's not safe anywhere else
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