Generally, the process of depositing money in banks goes a long way to regulate the circulation of money. Bank cannot function without deposits from their customers, most countries suffer from low domestic saving rates, a country like Zimbabwe that has no domestic currency, suffer from adequate flow of money.
Depositing money in banks is very essential because both the depositors and the banks themselves are dependent on each other. if there is no money, there will be no bank, atleast not for money. A lot of transactions are done on daily basis and as a result, business men and women, wage and salary earners trust the banks with their financial proceeds.
Here are four basic reasons you should deposit your money in banks
- For security purposes: . Don’t keep money at home because you may miss use it,or probably bear the risk of robber attack. you can only make money available to you for transaction purposes of for day to day activities..
- Indispensable Requirement: Money is indispensable for economic development among other factors. banks serve as financial intermediaries between the government and the economy. They involve in channeling funds surplus to our economy. It makes the government obtain credit for the development of our country and to meet various kinds of recurrent and capital expenditures.
- Mobilization: Money from the depositors in the bank can be used in prevent economic activity from collapsing especially in cases of natural disasters such as flood, disease or fire. The bank helps to make sure credits are available for the mobilization of all these mentioned cases.
- To Ensure Effective Control: we all know that money is the root of evil, without effective control of money , many people would have been spending it like water. Because they have the money at hand, they will be prompted to misuse their financial resources. But if your money is been deposited in bank, before going to make any transaction you will rethink on what you want to use it for.
In conclusion, I will say depositing money banks is very essential in any country at all, because it aides proper spending of fund. If you look at the Treasury Single Account (TSA), government don’t take money on their own . They follow proper instructions that says, “When the treasury has full information about cash resources, it can plan and implement budget execution in an efficient, transparent, and reliable manner”.