Why do many people like to say that “never trust a bank”?
- 7 months agoFavorite Answer
Because so many of them will find any excuse at all to take your money. They will intentionally drag their feet clearing checks you deposit when they know you have a low balance and have checks out - which then bounce. That way they can collect an overdraft fee. That's just one example. They have been caught by watchdog organizations doing this kind of stuff. Avoid the major banks and go with smaller ones to avoid such cutthroat tactics.
- Anonymous7 months ago
During the Great Depression between the years of 1921 to 1941, there were many people who should have been financially alright, but banks went out of business and all their money was lost when the banks failed. There was no financial protection (FDIC) in place to protect common people if a bank became financially unstable. People who lived during that era did not trust banks after that. That belief and distrust passed to many of their children and affected the next generation for several years also. The people who would have distrusted banks for this reason are either now dead or senior citizens. "Never trust a bank" is the sort of thing I would expect to here from my grandparents.
However, with the protection of the FDIC, there shouldn't be a reason to "never trust a bank" as far as using it to have a savings or checking account.
People sometimes misunderstand bank policies and then complain when they have an unexpected fee or unexpected event with their accounts. Those people also might not trust a bank. A few banks have done some shady practices, but it usually doesn't affect the common person anymore because of FDIC protection.
- exactdukeLv 77 months ago
With FDIC protection I can't think of anyone that I would trust more with my money (than a bank). Who is it you know that says that??
I had 40 - 50k with Washington Mutual. They went out of business on a Friday. On the very next day I was able to go to an atm & withdraw 100 bucks. And I found out my money was now @ JP Morgan Chase. The system worked just as it was intended to. I knew Washington Mutual was in trouble due to the housing crises. But with FDIC protection I wasn't worried.
- ntLv 67 months ago
Never heard anyone say that.