The current account allows you to receive income and salaries, but also to settle all daily expenses through various means of payment, bank card and checks in particular. However, out of habit or fear, many people prefer to leave their money in their bank accounts. A practice that is far from profitable. Explanation.
If you are the type to leave all your money in your bank account, reading the following lines may change your mind.
Why should you have little money in your bank account?
Receive your monthly salary, pay rent, credit, bills, taxes, so many good reasons to have a checking account and leave your money there. In this way, the money is available at all times and at all times. However, leaving large sums can expose their holders to various fraud or hacking attempts, especially in case of theft or loss of bank cards. Secondly, money deposited in a checking account rarely grows, especially in the face of unattractive offers from banksOn the contrary, they prefer to charge many bank commissions annually related to the management of these accounts, which does not stop exasperating the holders of said accounts. To this are added other disadvantages related to the amounts of money that you leave asleep in your bank account.
Inflation, a danger of permanent impoverishment
The current inflationary context is there to remind us: keeping too much money in your checking account risks making you poor. In other words, by adjusting for inflation, your returns may be negative and you run the risk of losing purchasing power on a daily basis. In addition and by letting your money stay in your checking account, you will suffer a loss of earnings, since the latter will not earn you any interest. It is best to place it in a savings account, as explained on the postal bank’s website.
The risk of bankruptcy or hacking is never far away
We won’t tell you anything, the number of scams is increasing and no one is safe from a hack of bank details. Indeed, cybercriminals will stop at nothing to recoup every penny and the latter will not hesitate to recover all your money if they manage to access your bank account. In addition, and in the event of bankruptcy, bank accounts are covered up to a maximum of 100,000 euros per entity, regardless of the number of accounts maintained.
A brake in anticipation of retirement
Having too much money in a checking account can comfort you with the idea that you have a good cushion and that the time to save has not yet come. The preparation for retirement is done against the current, so it is convenient to invest the money as soon as possible so that it grows well. As you will have understood, there is no right time to save, the sooner the better!
Investing your money in real estate: the best solution?
Investing is a wise and essential solution if you want to grow your money avoiding leaving it asleep in your checking account. One of the solutions that can be offered to you in this case is to invest in real estate.. An option that will allow you to reap benefits in the medium or long term.
For this, you can contact the SCPI, otherwise the Société Civile de Placement Immobilier. This real estate rental system allows you to invest in the company of other people. How ? You just have to buy SCPI shares and then you become an owner according to the number of shares purchased..
Thus, the money from all the investors is used to create a stock of properties for rent, with the SCPI being in charge of recovering the income to remunerate them to the holders of the shares at the same time that it deals with the management of the property in question.
As you will have understood, leaving some or all of your money idle in a checking account can be a bad decision in many ways. Don’t hesitate to make it fruitful!
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