Whether it is profitable or not to keep money in a bank account depends on some factors such as the goals and the situations. Benefits that are associated with the use of banks include; Security, of funds, availability when required and the interest that one can earn on the deposited money.
Banking services in terms of keeping money safer compared to keeping it at home since it is sealed off and cannot be accessed in case of theft or loss.
Also, Accounts with the bank provide easy access to cash through the use of ATMs, online banking, and apps simplifying the actual transactions, and management.
Additional accounts also have the feature that allows money to earn interest, so more can build up over time, though interest is currently comparatively low. However, there are considerations. Some banks may also levy fees on individual services or product maintenance hence affecting the overall net returns. Inflation dangers can potentially decrease purchasing power on a consistent basis and reduce the actual value of the money retained in accounts.
Also, the government agencies that offer deposit insurances usually do so with a specific ceiling that is set by law per depositor per bank, which means that depositors can lose their money in case of bank failures or in event of an economic crisis. In the long-term investment portfolio, investing in instruments rather than deposit money in banks accounts may prove profitable such as stocks, bonds or even real estate investment come with the added risk.
Finally, the decision to keep money in a bank should depend on one’s goals for that money, their ability to handle financial risk, and information concerning other choices that one can make to ensure the safety and growth of money.