Having a bank account is an integral part of the life of most of us, facilitating regular financial management. Although the bank account offers many benefits, there are besides any risks, especially in a time of expanding online fraud. The article will show how much money you can safely keep in your bank account and discuss the advantages and disadvantages of this solution.
From a legal point of view, there are no limits to the amount that can be stored in a bank account. Technically, you can keep any amount of money in your account. However, it is worth noting that bank deposits are protected under the Bank warrant Fund (BFG) which guarantees a refund of up to EUR 100 000 per client in 1 bank in case of bankruptcy. This means that in the case of crucial savings, it is worth considering diversification of measures in different banks.
Benefits of having a bank account
- Security and protection: The funds stored in the bank are safer than cash at home, especially thanks to the protection guaranteed by BFG.
- Comfort: Having a bank account allows you to easy make non-cash transactions, both in stationary and online stores.
- Availability: The ability to manage finances via the net and mobile applications.
- Interest income: Although the current interest rate on savings accounts is low, interest on deposits can be gained.
- Financial history: Regular usage of the account builds a credit history, which is helpful erstwhile applying for a debt or loan.
Bank account defects
- Bank charges: any banks charge bills, transfers or withdrawals from ATMs.
- Risk of fraud: expanding cybercrime and phishing can lead to theft of login data and failure of funds.
- Access restrictions: In the event of failure of banking systems or interruptions in the operation of services, access to funds may be temporarily restricted.
- Low interest rate: The current interest rate on savings accounts is frequently lower than inflation, which means a real decrease in the value of accumulated savings.
Financial security
The safety of bank account funds depends mostly on the user's awareness and caution. Here are any basic principles that will aid increase financial security:
- Regular change of passwords: Make certain your bank account passwords are strong and change them regularly.
- Protection of individual data: Never give login data to 3rd parties.
- Software update: Update your operating systems and antivirus regularly.
- Caution erstwhile beginning emails: Do not click on suspicious links or open attachments from unknown broadcasters.
Alternatives to bank accounts
- Investments: Investing in shares, bonds or real property can be a way of securing money.
- Fixed-term deposits: Although deposit interest is low, they offer any protection against money loss.
- Cryptovaluts: More and more popular as a form of investment, although they affect more hazard and volatility.
Having a bank account is an essential component of modern financial management. It offers many benefits, specified as safety, convenience and availability. However, in order to full benefit from its advantages, it is crucial to be aware of the risks and to comply with safety rules. The informed usage of banking services will let maximum usage of the opportunities offered by modern financial technologies.
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How much money can you keep on the bank account in 2024?
