6 Profits and Loss of Saving Money in the Bank

Profits and Loss of Saving Money in the Bank.

Bank as a financial service institution under the supervision of the State Financial Services Authority (OJK) is a place to save money or make other transactions.

Saving money in a bank is not only profitable but also has disadvantages because saving is very clearly different from investing.

Here are some Profits and Loss of Saving Money in the Bank:

Profits Saving Money in the Bank

1. Ensure the safety of money stored

Savings deposited in a bank are guaranteed by the Deposit Insurance Corporation or LPS, an institution whose function is to guarantee bank customer deposits because every bank that conducts business activities is required to become a participant in the LPS guarantee.

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2. Get savings interest

The amount of savings interest that you will get depends on the amount of money you save in a bank account. If you continue to increase the amount of money in your savings, the interest on your savings will certainly increase as well.

3. Convenience in financial transactions

If you need money to be deposited with another party or want to carry out other financial transactions, you can use SMS banking or internet banking facilities without having to queue at the bank or carry cash.

Loss Saving Money in the Bank

1. Savings interest is relatively very small

Don’t expect that by saving money in the bank, your money will multiply quickly because the savings interest is too small.

In fact, there are not a few types of savings that have higher administrative costs than the interest on savings earned each month.

2. Has a transaction limit that cannot be violated

Each type of savings has a daily transaction limit, either a usage limit or a money withdrawal limit.

If today you withdraw money until it exceeds the withdrawal limit, then you can only withdraw money again the next day.

3. Administrative fees every month

This administration fee deduction will continue even if your balance is below average until your savings cannot be deducted by administration fees anymore.

So it’s a good idea if your savings are always topped up regularly from your income every month so that the balance doesn’t continue to be deducted due to administrative costs that are greater than the interest on the savings itself.

Those are some Profits and Loss of Saving Money in the Bank.

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