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Is it true that once you deposit your money into your bank, it becomes the bank's money?

Answers:1   |   LastAnswerAt:2009.12  

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Hawkeye Pierce 
Asked at 2009.12.18 21:36:18
All the answers re: the money remaining yours are true. You DO make interest.

There is only one stipulation. When you sign to set up the account, you may have to give the bank a few days to get the money to you. This is true for a savings account. That is why you earn more interest than you do on a checking account. A checking account makes the money available to you at any time - ie you can write as many checks as you have funds for.

Now, if you do not have THOUSANDS, they will usu honor your request for withdrawal of savings' funds immediately, but technically, they have the right to hold off for as many days as stated in the contract.

It is TRUE that they lend the money to others. They make MORE interest on it than they are paying to you. That is how they earn their income. By Federal Law, they must keep in cash and available at ALL times (called Reserves) a percentage of all monies owned by others - account holders. They try to minimize their liabilities bec they can earn HUGE amounts of interest on all monies that they loan out. This is why they hold onto savings' accounts monies for a longer period than for a checking account. They are "assured" that they have that money available for loans.

Some HUGE banks loan out money to smaller banks -sometimes only overnight -bec the smaller banks are in danger of "overdrawing" their federally required percentage, as stated above. The HUGE banks can literally make millions on an overnight loan. The smaller banks don't want to "overdraw" their accounts bec the fines imposed by the Fed are HUGE.

I hope this answers your questions.
answer Fly on the Wall  Answered at 2009.12.18 21:36:18
All the answers re: the money remaining yours are true. You DO make interest.

There is only one stipulation. When you sign to set up the account, you may have to give the bank a few days to get the money to you. This is true for a savings account. That is why you earn more interest than you do on a checking account. A checking account makes the money available to you at any time - ie you can write as many checks as you have funds for.

Now, if you do not have THOUSANDS, they will usu honor your request for withdrawal of savings' funds immediately, but technically, they have the right to hold off for as many days as stated in the contract.

It is TRUE that they lend the money to others. They make MORE interest on it than they are paying to you. That is how they earn their income. By Federal Law, they must keep in cash and available at ALL times (called Reserves) a percentage of all monies owned by others - account holders. They try to minimize their liabilities bec they can earn HUGE amounts of interest on all monies that they loan out. This is why they hold onto savings' accounts monies for a longer period than for a checking account. They are "assured" that they have that money available for loans.

Some HUGE banks loan out money to smaller banks -sometimes only overnight -bec the smaller banks are in danger of "overdrawing" their federally required percentage, as stated above. The HUGE banks can literally make millions on an overnight loan. The smaller banks don't want to "overdraw" their accounts bec the fines imposed by the Fed are HUGE.

I hope this answers your questions.
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