Should you just keep your money at your home, or should you choose bank deposits? If this question has ever occurred to you, this blog is for you!
Nepal is on its way to a bad economic situation. So, wondering if your money is safer in a bank or hidden in your locker could be a pressing concern to the majority of us. Another matter of concern could be the safety of the amount we choose to deposit in banks.
While there are laws in existence to protect depositors.
Cases like robbery, theft or any other natural crisis can risk your lockers, but the money deposited in banks remains safe. There are laws in existence to protect depositors.
Your money is safer in a bank than at home. There are insurance policies as well as precautions to protect your account balance for any unusual event. Nepal Rastra Bank, Nepal's Central Bank, back banks, and the money they hold through several programs.
Now that we have established how saving through banks is safer, let’s discuss the benefits of saving money in a bank.
The economic crisis brought by the 2019 covid pandemic has had a major hit in Nepal’s financial sectors. The economic crisis is just around the corner, and the crisis is spreading on a wider scale- a wider economy.
The government of Nepal is taking steps to ensure that banks have the funds they currently require. These funds will be better capitalised than they were last time, which means that the banks will be better prepared to play the long game.
Banks are still suffering from this upcoming economic crisis. But even if your bank fails, your money isn't lost. As long as your money is backed by the Central Bank of Nepal and the Government of Nepal, you need not worry about losing your money. If, in any unfortunate and unforeseen scenario, your bank fails to keep up in this crisis, the government of Nepal will take over. Hence, banks do not go into bankruptcy.
All of this adds up to the conclusion that your money is probably safest in a bank account. So, saving up through banks would be a wiser choice for you!
Moving along, Let’s have a look at how banks keep our money safe:
The interest rates provided by banks can increase your fund over time. (interest rates vary based on the deposit schemes). Keeping your money in banks not only keeps your money safe, but also earns you interest as the time period passes.
One thing is for certain, your money is safe in your account. And withdrawing will not be an issue even if your bank fails.
Saral Banking Sewa works to sarali-fy your financial decisions. In case of any confusion or concerns regarding the services provided by the Commercial and Development banks in Nepal, we are only a call away!
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