In this particular guide, I will be talking all about the drawbacks and also the benefits of banking and banking institutions. Banks are institutions that deal with money in the millions, every single day. Some very notable banks deal with billions of dollars daily, because they have customers who are billionaires. Where do you think billionaires keep all the billions? Some billionaires invest into real estate, some billionaires invest into boats or yachts or ships, and some of them keep it in the form of money. Well, you cannot precisely be a billionaire and keep all of your billions only in the form of money, I am definitely sure they would be invested in a lot of other places. Some billionaires are actually rich enough to buy the entire bank itself.
Anyway, this particular guide is not going to be about billionaires, but, it is going to be about the pros and cons of banking institutions. These businesses are financial businesses who deal with money on a daily basis. Banking has actually changed quite a bit in the last few decades. A lot of banking activities are now done with the help of the internet. Banking is a numbers game. High-interest rates and lower fees and also the advent of digital technology is something that has influenced online banking very successfully. I would say that online banking is a huge advantage for people, ever since the coronavirus pandemic has confined us to the comforts of our own houses.
All banks have an online presence. Any bank that does not have an online presence, is not a bank where you should keep your money in. I will now speak about some pros and cons.
- You have so many choices, when it comes to banks. You can have a trust fund, a savings bank account, a fixed deposit account, a recurring deposit account and more.
- Banking can be a stressful activity, but once you get the hang of it, it is very convenient and helpful.
- Banks happened to be the safest legal place to store your money.
- A lot of banks are now very flexible. You can walk into their physical branches to deposit money and start dealing with the money that you have deposited with the help of technology. They offer some free services as well.
- A traditional bank is an attractive option, if you are depositing cash. But, if you are someone who has a lot of inflow and outflow of cash within your accounts which happen with the help of the internet, online banking is your scene.
- One of the most significant drawbacks of banks is that they are reducing their interest rates for fixed deposits.
A lot of banks also charge a lot of fees.