Required Reserve - a percentage of all deposits made to a bank that must be kept on hand, in the United States the required reserve is 10%.
A scary thing to note is that the required reserve amount each bank must have is not distributed equally across all of the individual bank's branches. If a run on the banks were to occur and you went to withdraw from your bank, they will not have your cash available for you to take.
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I think thats crazy. Why would they do that in the first place. I don't understand. It's kind of scary how much control our banks and government has on us. I feel like a country isn't a "free" country, and is slowly becoming controlled to much.
ReplyDeleteIt sounds scary, but I'm pretty sure there is a certain amount in which your guaranteed. (I don't exactly remember how much, but I remember it being pretty high) So in the case of some major crisis, most normal people would not be affected.
ReplyDeleteAnd those people who do have a high amount of money invested throughout banks should probably have smarter investments going on.
Well I would be pretty mad if the bank did not have my money when I would want it... I expect to have it right there and then... But Banks are monsters in general..They try and sign you up anyway they can so you can become their customer.. It would definitely affect people with millions or hundreds of thousands dollars in the bank a lot more then someone who has 3,000.00...But I don't care how much you have in there, it's your money and you should be able to get it no matter what happens, Banks should all have backup plans...
ReplyDeleteIts crazy that the bank would not have your money when you went to take it out. I think FDIC banks insure up to 100,000 dollars of your money. It just shows how powerful the banks are today.
ReplyDeleteI would hate to think i wouldnt be allowed to withdrawl money from my own checking account if i had deposited enough. I didnt think this would really apply to me, but when you think about it, I use my checking account to pay my bills like my credit card and cell phone, etc. so if i needed to make a payment and my bank woudnt allow me to do that it would affect me.
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ReplyDeleteI think it’s completely unfair that a bank might not always have the money you need to withdrawal. But I’m pretty sure that unless your taking out a very large amount of money then they should have it there for you. This is a main reason why it is not recommended to keep a larger amount of cash in a savings or checking account. Plus I don’t understand why someone would need as large of an amount of money at one time where a bank wouldn’t be able to give it all to you.
ReplyDeleteAll of this "pretend" money is the problem. I hate the thought that I can make a good amount of money and it can not be there because the bank loaned it out to someone else. I do not want to have to take precautions such as stashing my extra money under my matress, I want to know that my money is safe in my account.
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