Handout 37 - Myths And Truths About Banks

You must be rich to use a bank
Myth: even though many banks do require a minimum amount of money to open an account, it is often possible for people who do not have a lot of money to open an account and benefit from banking services.

Banks are a safe place to keep your money
True: banks are often the most secure place to keep money. Many have secure premises and insurance to cover losses due to robbery.

Going to the bank to deposit or withdraw money takes a lot of time
True – Sometimes: the queues inside banks can be very long. However, many banks now offer cash machines called Automatic Teller Machines (ATMs) through which clients can deposit and withdraw money 24 hours a day, seven days a week. At certain times the queues at these ATMs are also long, but if you can avoid these busy times, you won’t have to wait.

Banks lend you money so they can take your TV when you fail to pay
Myth: banks do make loans and sometimes the borrower may offer something of value to guarantee the loan in the case that he/she is unable to repay the loan. But banks do not want the hassle of taking their clients’ valuable things. They much prefer that their clients repay their loans.

If a bank is robbed, you will lose your money
Myth: banks usually have insurance to cover losses of this kind.