The first thing that you should consider is the reality that you are guaranteed to loose money if you deposit it in a bank. Given that it is impossible to find a savings account that pays anywhere near the rate of inflation, any money that you deposit today will have not be able to buy the same items a year from now that it can today.
But that is not nearly as problematic as what you are about to read!!
Did you know that once you deposit your money in the bank it is no longer yours?
The money that you just deposited in the bank becomes the property of the bank and you become an unsecured creditor holding an IOU.
If you think the Bail-ins that happened in Cyprus recently can only happen in other countries, you would be dead wrong. The same thing can happen here in the US as well as Europe.
In the event that a bank becomes insolvent, “the unsecured debt holders can expect that their claims would be written down to reflect any losses that shareholders cannot cover, with some converted partly into equity in order to provide sufficient capital to returned to the sound business of the G-SIFI to private sector operation.” This is according to the FDIC….. You know…. the supposed insurer of our deposits in the bank.
Who are the unsecured debt holders?… You and me, the people that deposited our money into the bank.
Still wondering if the bank is a safe place to store your money???