Should I Put Money In The Bank?

For a lot of us, banking online has become a fact of our financial lives, but ask yourself this: what do you really know about banking online? Plus, are there alternative ways to online banking? With the emergence of cryptocurrencies, is it still worth putting your money in the bank? Here at Promocodes.com, we’ll explain the true facts and debunk the myths.

money in a case

Is it safe to put money in the bank?

Most of us have bank accounts and depositing money into a checking account has become a way of life for most of us. However, did you know that when you put money into the bank, the bank technically owns it? Of course, your money is your money but when you put it into a bank account, the bank owns it because it’s holding it for you. This means that if your bank were to go bust, you’d lose your money (technically). However, most US banks are members of the Federal Deposit Insurance Corporation (FDIC), meaning that your money is protected and if a bank fails and can’t refund you your money, the government will step in.

Putting your money in the bank is still a better option and there are a number of benefits that come with that. As well as keeping your cash insured and protected, the bank protects your money from physical theft and damage, and if you bank online, measures are put in place to protect your money from fraudsters.

girl banking on the computer

Online banking: what’s the deal?

Online banking is a method of banking that’s become very popular as a result of the rise of the internet and the digital world. Online banking is highly beneficial because it makes managing and monitoring your finances much easier. Plus, it’s convenient: you can bank at the touch of a button and you don’t have to spend time at the time.

While online banking is common these days, there are a lot of myths that surround it.

Online banking is only for the younger generation.

This assumption comes from the notion that younger people are more likely to be in tune with the advancement of digital media, so they are more likely to use online banking in comparison to their older counterparts, but older consumers are just as likely to use online banking. Online banking is a simple and easy process and many online banking services have been designed to take the complexities out of banking.

Online banking is secondary.

For many people, online banking is their first port of call, in comparison to going into the local bank branch. Online banking is convenient as it’s available 24/7 and can be done from your desktop.

girl doing business at desk on the phone

Customers are less likely to go to the bank because of online banking.

Of course, as previously stated, online banking is convenient so you don’t have to leave your house to the bank. However, for specific services, it still helps to visit your local bank branch. For example, you may need to see your bank manager if you want to be considered for a mortgage, or you may want to withdraw cash.

Online banking is unsafe

Banks have many measures in place to protect your finances and protect your personal data, such as multiple steps of verification and encryption.

Customer service is non-existent with online banking

Even if you are banking online, many banks have available customer service teams that will help deal with your online banking inquiries.

What is cryptocurrency?

Cryptocurrency has become a new form of banking and currency. To put it simply, it’s a digital currency and decentralized financial system that operates independently of a bank and consists of encrypted units and transactions. Cryptocurrency helps to make financial transactions a lot more secure as it’s encrypted.

Since last year, the value of cryptocurrency has significantly increased, so it’s a hot topic right now, but a lot of people still struggle to get their heads around it, the truths and the myths.

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Debunking the myths of cryptocurrency

First of all, there is a common misconception that you don’t have to pay taxes on investments into cryptocurrency. IRS views cryptocurrency as property so if you make money on your investments, you must disclose it because it counts as eligible for capital gains tax.

Some people believe that cryptocurrency is unregulated, however, this is not true because cryptocurrency is subjected to federal securities law. Plus, cryptocurrency offers protection over your financial transactions.

Some also believe that cryptocurrencies have no value. While the value of cryptocurrencies do fluctuate from time to time, but cryptocurrencies have the same value as money and are valuable digital assets.