For now, it seems like many of us cannot do without our banks. Banks have come a long way in the financial system and everything seems to pass through them - saving money, depositing money, transferring money, exchanging money, etc. But then, cryptocurrencies are no longer new and they are changing how we manage money.
One important thing that banks do for us is to save our money. Of course not many people have the savings culture, but for those that do, the bank is usually a vital part of savings. Many people wrongly think that banks save their money by keeping it somewhere, maybe in their safe. But the important question I want to tackle in this article is:
- Do banks save your money by keeping it somewhere?
To many, the answer to this question seems obvious. But, what we do by saving much money in the bank seems to suggest that many do not know the correct answer to the above question. So lets look at it together.
What does the bank do with your savings?
To answer this question in a simple and short way, the bank does not keep your savings. There is no physical box marked with your name where your savings are deposited. They simply do business with your money - mostly they invest it. There are many ways the bank use the money you ask them to 'save' or keep for you. They include the following:
- Loans: This is one major way banks use the money they collect as deposits from customers. They have many loan services for individuals and big organizations. These loans are usually returned with interest. The money they make from such loan business is huge, which is why giving out loans have remained a long-term feature of most banks.
So some of the loans they give out are from the deposits you make - your supposed savings. Banks are smart enough to understand that money does not grow by being stored away in a box. So for them, it does not make sense to physically keep your money savings somewhere, they do loan business with it.
Property/Real Estate: Many banks invest in great real estate business that returns profit for them. That is partly where your money goes. Think about the thousands of customers that run fixed-deposit accounts. These are monies designated not to be used for a long time - its money locked away. So banks use these monies together with profit made from other businesses to invest in property and real estate business.
Other interest-generating services: Banks provide many other services and they charge some interest from them. For example, they can finance entrepreneurship programs, scholarships and other services. These services are sure to have return on investment. The banks at their discretion can use some of your savings to run these businesses. Of course anytime you come to make withdrawals, there will be money to pay you.
From the above, it is obvious that banks do not save your money by locking it somewhere in a box. They understand that money does not grow by sitting idle. So the best way to save money is by investing it yourself. If you save it in a bank, they will invest it for you, and you wont see the returns. Wouldnt you rather look at the 20% savings rate offered by our great platform when you save in HBD?
20% APR is the best anywhere
Since banks invest our savings, its better we do it ourself. Isn't it? Its safer here and more profitable. On our beloved decentralized platform hive, there are many ways you can save your money and make more out of it. One of the ways is saving in HBD.
Apart from the safety and being in full control of your funds, another reason to consider saving in HBD is the interest rate. You can hardly find a bank that pays double digit interest rates. But when you save here in HB, you earn a wopping 20% of your savings per annum, is that not amazing?
I moved my savings from a stable crypto in a centralized wallet to HBD. With all the FTX drama and other recent developments, leaving my little savings elsewhere is damn dangerous. I was able to convert and have +2000 HBD in savings. 4 days later, I already have up to 4 HBD interest for my Savings. That is cool. Take a look below:
Its yields more here. Its safer. Am in total control. Are these not what we want in real savings? And remember, this is the bear market. Why HBD does not flunctuate too much, buying and saving now that the market is generally low gives your savings some edge.
If you already have savings in the bank, in cash or in some centralized crypto exchange platform, you have something to think about after going through this article.
Conclusion
This article is my personal opinion of the issue raised. Its not professional advice. Please do your own research and be responsible for your decisions. For now, am saving in crypto - saving in HBD, staking CUB and LEO. Thats all.
Posted Using LeoFinance Beta
I quite agree with you. The day I knew what banks do with our savings and at the end of the day, we aren't given interest but to keep deducting our money, I stopped saving my money in banks. It's been over six months I stopped putting my money in banks but in a digital bank and this is the money I use urgently. I prefer letting my money work for me other than sitting idle somewhere.
Hbd has been helping me since I started saving there. Though, small but it's still good compared to storing my money where it doesn't generate interest for me.
Me too. Its just not yielding anything when we save in traditional banks, they steal from us too. That is really a bad way to manage money.
Because when it sits idle, it does not grow, does it?
We start saving from somewhere. So I know that with time, your savings and the interests will grow. Keep up the effort.
Yes, it will grow with my efforts being put into it. Thanks
Wish you the best in this
Wow this is amazing it's really good I can't wait to hear or know more about this wonderful savings. Please I'm interested on it.
Its simple to start. Just get your HBD, put it in savings and earn 20% of it per annum. I would be happy to assist you more if you wish to start soonest
Yes I will please.
Alright
Wow this is amazing it's really good I can't wait to hear or know more about this wonderful savings. Please I'm interested on it.
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You're welcome @fokusnow! Have a nice day 😊👍
Saving in HBD is really cool than saving in the bank. I agree with you that Bank use our money to run business which yields profit for them but we are not giving anything.y savings now will always be in HBD
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Honestly I appreciate this write up, we all are tired of bank's unnecessary debits. But when you invest it in something meaningful, it appreciates more and more