Do You Trust Keeping Your Money In A Bank

I don't trust banks, where should I store my money?

Lots of people hate banks, with good reason.   The issue of how to keep value without any risk of loss is a tough one to answer.  There's the old story about stuffing your mattress with money ( not a good idea if you have a fire.)  You could bury gold in your back yard and buy some really mean dogs to guard it. ( a lot of Chinese do this).  You could  buy diamonds and sew them inside your clothes.  But then they could steal "the shirt off your back."The problem is, there just aren't any truly, 100 % safe places to save wealth.  So instead of putting all of it in the bank, try placing it around in stock brokerages, some in savings banks, some invested in real estate, and some working for you in your own business. That's probably the safest way to save money... and ensure that at least part of it is going to be there when you need it.

Which bank do richest people in India trust to keep their money?

I do not know all the richest people in India, However, I know about richest people in Surat, Gujarat (The most liquid money held in whole India), as I lived here.Most of them are invested in Land and some what in Gold. If any cash remaining to keep they keep in unknown local co operative banks which has not even Internet banking.Reason behind that is Such local co operative banks mostly owned by himself only or is in share or in trust, so that they can only show what they want to show.They receive privileged services Such as Bank gives door delivery of cash which is in crores of rupees and take cheque even if wrong signature.They don’t have any Internet related Banking so that no threat of Hacking.They even don’t use ATM or Mobile Banking to view the statement.They used that privileged services which can not be disclose here (All they want from Bank)For general use they Use ICICI or Indusind Bank or SBI as they have Best Internet Banking servers But, they put their real money in such type of Co Operative Banks.

Do you really trust banks to keep your money safe, despite the government having power over your money?

I do trust my bank. Where did you get this idea “…the government having power over my money…”?? The government can’t just come in and “take” my money. It is against the law. Accounts are “insured” by the government that should the bank fail, you will not loose you money up to a certain amount, I think about $250,000, in an account. If you have more than that amount, then spread it out and open another account in another bank that is also FDIC (Federal Deposit Insurance Co) insured. If the “whole country” fails, then everyone looses their money including the government and there’s nothing you can do about it anyway unless you’ve bought gold bars and kept them in your mattress.

Do you like your bank? Do you trust your bank?

I would have liked to say yes to both these questions as a single answer but with the recent information which is coming out the way it had been working, the TRUST is really draining fast.Huge loans which were not questioned during audits year after year.Hand-in-glove for the issuing MEGA-HUGE LoU and naming just 2 juniors as responsible for it.Loan approvals from current and retired senior employees on the basis of fake lease documents.These fraudsters getting enough time to fly out of country before the information comes out and they show beating the bush for snake which is already gone.Increase the difference between deposit and lending rates to increase the buffer with zero action plan for recovering the money that is lost in these frauds.Cash seized in new currency notes right after the note ban, and there is ZERO traceability of the travel of such huge piles.Almost ZERO action against errant employees which can send a message that none later will think of attempting such or any fraud.Denying information sharing about HUGE loans in the name of confidentiality and trust (WHOSE is a big question?).Really questionable audit reports as such irregularities are coming in light every second day.Average monthly balance of a saving account goes below a threshold, money is pulled out of that account with 100% accuracy but such HUGE defaults go untraceable year after year after audits.And they still want their customers to trust.Do they really have any moral right to ask for?

Is it safe to keep money in private banks in India, as compared to nationalized banks?

Definitely it is safe to keep money in Private Banks in India. All the private banks which are scheduled banks (like ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra, Yes Bank, IndusInd Bank, etc.) are governed by the guidelines prescribed by the RBI. The all the Private Banks are also well monitored and managed and has lower NPA as compared to PSU/Nationalized Banks. Even the Private Banks have close monitoring on possible frauds and the employees in the private banks have limited rights to access the system. Hence, risk of possible Frauds done by employees goes is lesser.Even though you will find the better ambiance, environment, employee behavior, service, and rewards better in Private banks as Compared to Nationalized One's. However, today, the Nationalized Banks are also transforming to provide their customer's a better environment, and service as can be seen various branches of PNB, and Bank of Baroda.Anyways, I always suggest to keep your hard earned money in any Indian Bank whether its, private or nationalized, no matter - its safe.But never - ever fall prey to Cooperative Society's luring offers - offering high interest rates or returns...Keep Investing... Keep Earning... The author is one of the founder of perfectbanker.com

Why should one keep his money in cash rather than in a bank account?

Normally I would keep my money in the bank - it is safer there.However there are times when it is better left out of the bank.The first occasion is when you lose trust in a bank. Now many modern banks have deposit insurance, however the insurance might not pay out as much as you would hope - Iceland dumped all foreign creditors when their banks failed and their deposit insurance fund ran out of cash.The second is a government bank raid. There are many typesThe first is when the state decides to covert foreign currency accounts to local currency accounts. This generally occurs during an economic crisis, and I have heard of Argentina and Iceland doing this.The second is when the state decides to convert cash deposits to equity (shares in a bank). This occurred in Cyprus a few years ago. The banks did not have enough capitol and the state decided to convert debt to equity. The first proposal would have affected everyone - this failed in Parliament, so the next proposal affected depositors above 100,000 euro.Holding money in bank accounts makes things much easier to tax. Especially when the state is short of money. In the recent financial crisis in Ireland the government introduced a pension levy on all pension funds to help balance the books.However some people hold their money in cash because they don’t want the state to have easy access to their money to raid it. This may be due to debts like taxes, and child support. Or protection from their creditors. In addition using the banking system creates a record of a persons income - which is useful to tax collectors. Many contractors will offer discounts for cash payments and in Italy it is illegal not to leave a shop with the tax receipt.