Banks are the safest place to keep money, but it becomes the worst place because of a few people making frauds and scams.
You must be aware of the current ongoing bank crisis of the PMC Bank. All the account holders and depositors of PMC Bank are worried and going through the worst situation in their life. In general, they are thrown into complete disarray. This is because the Reserve Bank of India (RBI) ordered PMC Bank not to engage in any business activity for six months for breaking its rules for 6–7 years, thus capping depositor withdrawals. The PMC Bank has been barred from granting, renewing any loans and advances, make any investments, accept fresh deposits, etc. without the prior written approval from the RBI. In this blog today, we are going to share some tips on how you can keep your money safe and avoid being a victim of such a crisis.
1. Open Multiple Bank Accounts
You may have heard the famous finance saying, “Don’t put all your eggs in one basket”. The same rule applies while opening a bank account as well. Don’t open your savings account in only one bank and put all your money there. Rather open a minimum of two bank accounts, in private and government banks respectively. This way, if one of the banks goes through a crisis in future, you will have money for your usage from your other bank. Having a couple of bank accounts is the safest way to keep your savings safe and averting such crisis.
2. Staying updated with the Bank News
The second tip we have for you is to stay updated with the bank you have associated and opened your account. Since you have deposited your money in the bank, it’s essential to know what’s happening with that bank. You don’t need to act like a researcher or journalist here. You simply have to do general observations and monitor it at least once in a month to know whether everything is good with the bank. Remember, staying up-to-date with the latest news will make you aware and help you avoid a crisis.
3. Diversify your Investments
In the contribution to our opening statement and the first point, one should diversify their investments in fixed deposits across banks. As you can see in the PMC Bank Case, many people have deposited all their money in its Fixed Deposits and Savings. Now the situation is that they can’t withdraw their own money. Only ₹10,000 is allowed to be withdrawn each month from the ATM. To live with such an average amount in today’s world is hard to think right? But that’s the reality currently! So, it’s imperative to diversify your money in various investment instruments.
Don’t put all your money just in Fixed Deposits you can invest in Physical Assets like Gold, Real Estate, etc. or Financial Assets like Mutual Funds, Bonds, Stocks, etc. We don’t recommend you to directly invest in Stock Markets without having the proper knowledge or taking help of an Expert Financial Advisor.
So, these are the ways how you can keep your money safe in banks and avoid bank crisis prudently.
