First :
Keeping your money in banks may not be useful, especially in times of low interest policies adopted by central banks. Suppose a bank offers 1% interest on bank deposits while the inflation rate is 4%. In this case, the depositor does not earn any interest on his money. Rather, it loses 3% of its purchasing value due to inflation, and therefore investing this money in buying assets whose prices will rise may be better than depositing money in banks.
secondly :
The possibility of making a profit from borrowing money from banks and investing it in other places when the interest rate is lower than the inflation rate. Time amounts to 15.6 billion dollars and is ranked 40th in the list of the world's rich, meaning that he can buy 10 homes worth 6 million dollars in cash, without drawing attention.
So why get a mortgage?
In fact, Mark Zuckerberg benefited from the fact that the interest rate on the mortgage was 1.05 percent, which is less than the inflation rate, which was 1.4 percent, which means that he obtained a house from bank money whose price increases more than the interest rate he pays to the bank.
Third :
Banks keep only a small portion of people's money that they deposit, and produce other money based on how much money people have deposited. This is known as partial banking reserves. Commercial banks are allowed to keep only a small percentage of deposits and lend the rest of the money. For example, suppose you deposit $10,000 in Bank, the bank keeps only $1,000 available for you to withdraw, and the bank lends the rest (which is $9,000) to someone else, but when you check your account the bank will show you that your money is still there and you can withdraw it whenever you want.
The question here is if your money is still in the bank, from where did the bank take the money to lend to someone else?
In fact... for every $1,000, for example, you deposit in the bank, the bank creates another $900 and lends it to someone else, which makes the total amount $1,900, meaning that the bank created $900, but it's just a number in the banking system and not a print of real money.
The bank may not face any problem unless the depositors go to withdraw their deposits from the bank at the same time.
Fourthly :
The richer you become, the more you prefer the banks, the banks compete among themselves to give loans to rich people at lower interest rates than others, because in this case the bank is reassured of their ability to repay the loan.
Fifth :
Credit cards are the fastest way to fall into a debt spiral. Remember that the interest on borrowing from a credit card is much higher than the interest on other loans, and there is a problem with many credit card holders, as they spend without an account and some postpone the payment of the amounts due, think about it, if You can't pay off your credit card debt on time now, so what makes you think you can pay it off in a few months when the debt builds up and becomes much larger? Hence, you owe the bank amounts that accumulate interest over time, so you should not be surprised by the urgency of the bank's customer service staff to give you credit cards.
But if the credit card is used in a responsible manner and the spending is thoughtful, the credit card becomes a kind of physical security against emergency circumstances, and it reduces the risk of carrying cash, and can also be used in booking travel tickets, paying in hotels, restaurants, and buying from stores.
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