Why is saving money in the bank considered a loss?

[Suba]

Even though our money in the bank is safe and insured, expert investors think that saving large amounts of money in the bank will make a loss, because the interest rate provided by the bank is lower than the inflation rate, so the real value or the exchange rate of money for goods and services will decrease. So that the purchasing power of the amount of money you keep in the bank will go down (loss). Do you agree with the opinion of the investors?

 

[Hate2Wait]

Yes it's a loss because of low interest rates but still large percentage of people prefer to save money in bank as they are scared of loss and don't like to invest in Stocks or in any other security scheme so this is the problem.

 

[Sanjeev]

Yeah, I agree it's a loss of money as the interest paid by the banks on savings is very low. It's better to invest your money somewhere. I know it's a risk to invest your money in shares but that's how the money grows.

 

[Bisolami]

Even though our money in the bank is safe and insured, expert investors think that saving large amounts of money in the bank will make a loss, because the interest rate provided by the bank is lower than the inflation rate, so the real value or the exchange rate of money for goods and services will decrease. So that the purchasing power of the amount of money you keep in the bank will go down (loss). Do you agree with the opinion of the investors?

I think people see it as a loss because they are not getting any interest and those getting interests earn just little on their mone

 

[Starmix]

Even though our money in the bank is safe and insured, expert investors think that saving large amounts of money in the bank will make a loss, because the interest rate provided by the bank is lower than the inflation rate, so the real value or the exchange rate of money for goods and services will decrease. So that the purchasing power of the amount of money you keep in the bank will go down (loss). Do you agree with the opinion of the investors?

Maybe but it's not all the time savers suffer loss on interest but the capital is at stake. It will be illegal for a bank to declare bankruptcy right away. The depositors will be alarmed that's why we experience panic withdrawal. There are also whose money gone in the wind.

 

[Sanjeev]

Maybe but it's not all the time savers suffer loss on interest but the capital is at stake. It will be illegal for a bank to declare bankruptcy right away. The depositors will be alarmed that's why we experience panic withdrawal. There are also whose money is gone in the wind.

I have not heard of any bank being bankrupt recently.

 

[Starmix]

@Sanjee , it happen here in my country because loaners failed to pay the bank and they're equity isn't enough so affected banks were merged or sold to other bank and the new bank pays the depositors.

 

[Bisolami]

Maybe but it's not all the time savers suffer loss on interest but the capital is at stake. It will be illegal for a bank to declare bankruptcy right away. The depositors will be alarmed that's why we experience panic withdrawal. There are also whose money gone in the wind.

Some people have lost their money to bank and I don't think it can ever be retrieved. We just have to be careful of our money saving method

 

[Enxx]

I also believe that saving huge amount of money in the bank is a loss. Because the money will just be there with no profit. But when we invest in the money,we will make profit

 

[LoukiaCharilaou]

Even though our money in the bank is safe and insured, expert investors think that saving large amounts of money in the bank will make a loss, because the interest rate provided by the bank is lower than the inflation rate, so the real value or the exchange rate of money for goods and services will decrease. So that the purchasing power of the amount of money you keep in the bank will go down (loss). Do you agree with the opinion of the investors?

Yes, I agree with you. Saving money in the bank is a loss because of the interest rate. For this reason, it is wise to invest some money as well.

 

[Magnus2022]

Yes! I agree with them . But I still keep my money on the bank to avoid unnecessary expenses. Though I know is not a better option but I have no better option.

 

[Raja]

Not a total loss because you need to have minimum deposit in Bank for emergencies

 

[nomad]

Money can lose value where there is inflation. Therefore, investing is better than saving.

 

[Springtime]

Indeed, saving money in a bank results in a loss if the interest rate does not keep up with inflation. Investment helps to make your wealth grow but there is also a risk of losing the capital. I think one needs to keep a certain amount of money in bank for emergency back up.

 

[Shavkat]

It will be a loss if the money in the bank does not have interest while saving the money here. There are banks who offer 0% interest while depositing the money here.

 

[eldavis]

Saving money in the bank is considered a loss simply because it does not generate any profit for you, rather the bank debit you for various charges. Even fixed deposit accounts do not generate much.

 

[IB D]

It is because the interests that banks pay are so small and the money still loses over time because of inflation. That's why many people prefer to keep money in cryptocurrency. The interest potential is very high and it doesn't lose value.

 

[Stardom22]

Yes that must be the naked truth. Saving money in banks is deemed losses. This is evident by the lowest interest rates that can pay for your savings. It's better to invest the money in buying the shares.

 

[Bisolami]

Saving money in the bank is considered a loss simply because it does not generate any profit for you, rather the bank debit you for various charges. Even fixed deposit accounts do not generate much.

Saving money in the bank should not be considered a loss but just have it in mind that you will not make any profit

 

[Stardom22]

Saving money in the bank should not be considered a loss but just have it in mind that you will not make any profit

Despite for you not making any profits, you maybe needed to incur some charges on your account especially when you need to access your money, like the transaction fees, account maintance fees among other expenses.