According to recent estimates, the bank deposits of Italians amount to 1,600 billion. Probably, at the end of the year Italian GDP and deposits will coincide. According to estimates, GDP will have fallen to at least 1,700 billion and deposits will probably have risen to 1,700 billion euros. Leaving money in your checking account is not an advisable solution. In the article, the ProiezionidiBorsa Experts illustrate the 3 reasons why you should not keep more than 100 thousand euros in the current account.
Leaving your savings in the bank has a significant cost
The Italians, suddenly hit by the pandemic, with an uncertain future, leave everything on account, waiting for better times. They do not invest in the stock market, they buy few bonds and the brick, a safe haven asset par excellence, is set aside for the moment. Naively, they think leaving money in the account is the best strategy. But this solution has costs and drawbacks. Let’s overlook the aspect of opportunity costs. The money in the account, rather than invested in stocks or bonds, is a loss of earnings, especially for those with large numbers.
The 3 reasons why you should not keep more than 100 thousand euros in the current account
Do not think that there are few Italians who have at least 100,000 euros in their account. There are many, as evidenced by the 1,600 billion in total deposits. Keeping over € 100,000 in one account is a suicidal strategy. Here are the 3 reasons why you should not keep more than 100 thousand euros in a current account.
The first reason relates to the guarantee in the event of bank failure. The FIDT, Interbank Deposit Protection Fund, guarantees money on current accounts up to 100 thousand euros. Beyond that amount there is the risk of losing the part exceeding 100 thousand euros in the event of bank failure.
A possible asset advises against leaving money in the account
The second reason concerns a possible asset or a forced withdrawal. The hypothesis is far from remote even if it is not likely to happen with this government (we talked about it in this article). In 1992, one night in July, the Amato government, in search of funds, triggered a forced loan on current accounts. If this is a percentage of deposits, the more money you have in your account, the heavier the tax will be
Third reason. Above 5 thousand euros you pay a tax, the stamp on the current account. It may be a small thing, 34.2 euros a year, but why give them to the state. After all, having 4 thousand euros in the account for small expenses is more than enough. The rest of the capital can be used in BTPs, until better times return to invest it elsewhere.
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