Motives of Depositors

It is good to know that there are still person or individual, families and businessmen that are still depositing money in their banks. Saving money is a must because life is so unpredictable and we may not know what will happen in the future. If you are interested in depositing money in the bank then here are the motives of depositors to help you decide. When depositors entrust their money to a bank, each of them may have one or more motives for doing so.

First motive is for safety where the depositors place their excess funds in the bank because they are aware that modern banks have fireproof and burglarproofs safes and vaults to keep their money in. compared to keeping your money at home, the bank is considered as the safer place so that either time or demand deposits will be relatively safe By the state Besides, bank funds are duly protected by proper safe guards and regulations imposed Second motive is for convenience wherein he may open a current account and then he may use checks for payments and sometimes it is safer to bring checks than actual cash. Besides the convenience he enjoys, he also acquires a certain degree of safety. Third motive is the earnings or income because when you put your money in a bank, the bank will give you interest because they borrow your money so they are giving interest.

The last motive is accommodation. Depositing your money will give you special favors like allowing you to have lines of credit and the like. Businessmen deposits money in a bank because of the special favors they want from them. Lines of credit may be accorded to them upon proper arrangements. They could also deal in trade by having the bank as guarantor through the issuance of the letter of credit.

Related posts: