When you deposit money in the bank : Who owns it?. You or the bank

[lifeafter41]

Say into a saving accounts, paying pittance on interest anyway, the crux is, is the banking holding it in trust for you, or as I have come to read, it becomes a liabilities, in the bank balance sheet.

Fractional banking, this term has been mentioned many times, means what?.

 

[greenies]

Say into a saving accounts, paying pittance on interest anyway, the crux is, is the banking holding it in trust for you, or as I have come to read, it becomes a liabilities, in the bank balance sheet.

Fractional banking, this term has been mentioned many times, means what?.

Very obvious answer...
Banks are the owners, who can decide and also be liquidated. You cannot do much against the Banks.
You are merely put your saving there... anything happened, you lost (Bank wound-up, you just disappeared...)

 

[myfoot123]

The law decides and the bank just follow the judge instructions to freeze or at their whims.

However, there is another more obvious example that you don't own the money after putting your savings inside, and if you decided to withdraw your money, it is deemed a loan to you and you pay interest. Guest which institution did that to you?

 

[greenies]

The law decides and the bank just follow the judge instructions to freeze or at their whims.

However, there is another more obvious example that you don't own the money after putting your savings inside, and if you decided to withdraw your money, it is deemed a loan to you and you pay interest. Guest which institution did that to you?

CPF?
Insurance?

 

[chootchiew]

However, there is another more obvious example that you don't own the money after putting your savings inside, and if you decided to withdraw your money, it is deemed a loan to you and you pay interest. Guest which institution did that to you?

Wah lan eh..got such rule..whoever put their $ inside must be ah gong ..kekeke

 

[lifeafter41]

The law decides and the bank just follow the judge instructions to freeze or at their whims.

However, there is another more obvious example that you don't own the money after putting your savings inside, and if you decided to withdraw your money, it is deemed a loan to you and you pay interest. Guest which institution did that to you?

If you are referring to CPF, understand there is a mninmum sum involved and monies goes into buying property makes it up. Everything else can be taken out at age 55.

Still long way to reach that age, nevertheless, might be a good time to look into it too.

 

[shctaw]

Example.....

Mr X owe a mortgage of $1m.
At the same time he has $1m deposit.

If the bank go bust, he will lost $1m deposit but he is still liable to pay his mortgage.

And if he cannot pay they will take his property.

Fair hor???

 

[syed putra]

Example.....

Mr X owe a mortgage of $1m.
At the same time he has $1m deposit.

If the bank go bust, he will lost $1m deposit but he is still liable to pay his mortgage.

And if he cannot pay they will take his property.

Fair hor???

must try and get banking license.
Also insurance. I interview the sales staff personally.

 

[sunlee2002]

Technically speaking, money deposited by an account holder in a bank becomes the liability for the bank. That means the bank will pay the money to the holder on demand…so legally the money belongs to the bank and the holder has a legal claim to it.

 

[Leongsam]

Say into a saving accounts, paying pittance on interest anyway, the crux is, is the banking holding it in trust for you, or as I have come to read, it becomes a liabilities, in the bank balance sheet.

If you ask those with bank accounts in Cyprus, they'll give you the answer in no uncertain terms and in very flowery language too.

 

[enterprise2]

Say into a saving accounts, paying pittance on interest anyway, the crux is, is the banking holding it in trust for you, or as I have come to read, it becomes a liabilities, in the bank balance sheet.

Fractional banking, this term has been mentioned many times, means what?.

When u deposit $100m u own the bank!

 

[KopitiamTowkay]

If you put into CHC Kong Hee Fatt Choy account it will increase by 10 fold.

 

[halsey02]

The law decides and the bank just follow the judge instructions to freeze or at their whims.

However, there is another more obvious example that you don't own the money after putting your savings inside, and if you decided to withdraw your money, it is deemed a loan to you and you pay interest. Guest which institution did that to you?

The big bang..CPF, now that you mention it..I can never, ever understand, why I am owing myself money, when I take my OWN MONEY OUT, I have to pay myself INTEREST??? ??? any answers to this??

You are self employed as an example...you do not pat your medisave..you go to jail..YOU GO TO JAIL OWING YOURSELF MONEY!! ha ha ha ha

 

[halsey02]

If you put into CHC Kong Hee Fatt Choy account it will increase by 10 fold.

No it will cross the road to Damascus to Hollywood Boulevard...under the CROSSOVER project..

 

[I_Hate_Pappies]

If you are referring to banks in Singapore then the answer is PAP.

 

[StinkiePeasants]

If you ask those with bank accounts in Cyprus, they'll give you the answer in no uncertain terms and in very flowery language too.

That is why it is not very wise to keep too much money in a single bank. Better diversify to various banks located in various countries.

Also, it's good to diversify to different asset classes like stocks, bonds, real estates, precious metals, private equities, collectibles; such as, rare wines, paintings, arts, ultra luxury rare timepieces, etc. Before investing in any of the aforesaid asset classes, make sure to do your research and due diligence first to understand the risk involved.

 

[StinkiePeasants]

When u deposit $100m u own the bank!

No. You are a creditor to the bank regardless of whether your deposit is $1 or $100m. The Russian oligarchs who lost more than EUR 35 billion in Cyprus learned their lesson the hard way. The owners of the bank are the stockholders. The depositors are technically classified as unsecured creditors.

So if you have on deposit $100m in a bank and it failed, you can kiss your $100m goodbye.

 

[shctaw]

Owe the bank a billion dollar.

Technically you owned them.

No. You are a creditor to the bank regardless of whether your deposit is $1 or $100m. The Russian oligarchs who lost more than EUR 35 billion in Cyprus learned their lesson the hard way. The owners of the bank are the stockholders. The depositors are technically classified as unsecured creditors.

So if you have on deposit $100m in a bank and it failed, you can kiss your $100m goodbye.

 

[Narong Wongwan]

That is why it is not very wise to keep too much money in a single bank. Better diversify to various banks located in various countries.

Also, it's good to diversify to different asset classes like stocks, bonds, real estates, precious metals, private equities, collectibles; such as, rare wines, paintings, arts, ultra luxury rare timepieces, etc. Before investing in any of the aforesaid asset classes, make sure to do your research and due diligence first to understand the risk involved.

If you need to resort to this....your net worth must be at least in the high 8 digits.

 

[shctaw]

You are very sharp. Good gosh......

I know a buddy whom keep buying rolexes and Mont Blanc pens. Probably around 500 watches and 2000 pens.

Strange way to invest hor?

If you need to resort to this....your net worth must be at least in the high 8 digits.