A few weeks ago, one of our Europe-based Total Access members reached out to ask us about a bank account he was considering for his new business.
This is important stuff.
As I’ve written before, most people spend more time thinking about what they’re going to have for dinner than even considering whether or not their bank is safe.
RV Capital Co-Investor Letter for the first half ended June 2022. Q2 2022 hedge fund letters, conferences and more Dear Co-Investors,
In finance there’s hardly anything more critical.
Never forget that the moment you deposit your savings at a bank, it’s no longer your money.
From a legal perspective that savings becomes the bank’s money; as a depositor, you have nothing more than an unsecured claim against the bank.
They don’t actually have to give you back your deposit.
Under current regulations, banks have countless ways to freeze your account in their sole discretion, or to deny your request to withdraw money.
(If you don’t believe me, try to withdraw $25,000 in cash and see what happens.)
In many ways banks are lifelong, silent financial partners.
And given their incredible power over our finances, it certainly makes sense to spend a few minutes considering our options.<