Having money in the form of fiat paper rectangles and token coins, contra a bank deposit.
Nowadays people conflate the two, because having a demand deposit account with card and stuff is so practical.
But in fact they are different. Depositing in a bank means you lend your money to the bank, so it is an investment via lending.
You could also ask the bank to hold your money for safety without lending to them.
If you compare the risk of lending with the risk of theft (when holding the money directly), the risk factor may be in favour of bank deposit under normal conditions. But conditions are not always normal.
tl;dr Bank deposit is lending, which is a form of investing.
Nowadays people conflate the two, because having a demand deposit account with card and stuff is so practical.
But in fact they are different. Depositing in a bank means you lend your money to the bank, so it is an investment via lending.
You could also ask the bank to hold your money for safety without lending to them.
If you compare the risk of lending with the risk of theft (when holding the money directly), the risk factor may be in favour of bank deposit under normal conditions. But conditions are not always normal.
tl;dr Bank deposit is lending, which is a form of investing.
Sorry for my french but that is bullshit.
They also put your checking account into short term loans, but they dont give interest to you on it, thats why a checking account is free (nothing is free they just dont tell you about it)
So if a bank loses everything, your deposit & checking account goes with it too.
If the investment insurance fund cannot bailout the bank, then they go bankrupt too.
If the government cant bail out the I.I.F then they go bankrupt too.
If the central bank cannot print money fast enough to bail out the gov bonds, then the whole system collapses.
It's all a house of cards, based on empty promises, which will fall down like a domino one day.
