MONEY AND FINANCES

PART I: BANKS

Hi everybody. Before I begin I’d like to explain shortly why I’ve chosen this topic not other. As you surely know money is funds that we use almost every day. This is a kind of source necessary to fulfill our needs. Money itself is not interesting except for amounts that we possess and amounts that we’re trying to gain. People use to say ‘money doesn’t give happiness’ – I don’t think so! The 2 main activities related with each other are spending and earning. Earning of money is an activity that I’m interested in very much and I’d like you to share with me all experience that you have in it. Ok let’s start.

A Bank
Institution that earns money generally on loans, credits, bonds, mortgages etc. (Banker said…) Banks doesn’t have unlimited assets so on the other side they also have to get money from somebody. Mostly these “somebodies” are customers and companies. I.e. someone makes a deposit with interest rate 5% and puts 10.000 zl then someone takes a loan with interest rate 15% and gets 10.000 zl so the bank profit is 10% from 10.000zl. This was only very simple example how bank works nevertheless banks have other more serious financial sources like real estates or stock exchange market which is unsteady, unsafe but brings better and faster results (of course not always vide Lehman Brothers).

I’m more than sure that all of you have a bank account which is now not a standard but almost required instrument in daily life. Banks usually offer usually standard account with a low interest rate and without extra payment you can get a debit account or saving account just by submitting your application even through web page. Personally I was using branch of PKO BP internet bank called ‘Inteligo’ but last time I’ve made detailed analyze of charges and interests rates for saving accounts of few banks and I have to say that my winner is MBank – check their offer it’s really good. MBank offers 4 saving accounts with interests rate 4.2 %. It means that you can play with money (withdraw and transfer back) 4 times in a month without any extra cost – this is a really big advantage. They also offer revolving credit with interests rate 11.45% - i don’t know better offer on market.

Bank is just some kind of pocket that holds our money safe and gives extra if we have of them a lot. But let’s also focus on threats and risks related with this institution. I was searching the web to find some good articles about it instead I found these great movie clips from youtube that really changed my point of view on our monetary system. It’s like ‘never ending story’ movie but worth to be seen (just don’t read subtitles!):











Summarizing banks rule the world. It is a good friend for people who want to keep and save money systematically but not a good solution for someone who takes a loan just to repay other obligations i.e. credits in other banks.

Questions:
■ In which bank you have an account?
■ Are you satisfied from your bank or maybe you’d like to change something?
■ Do you save money systematically?
■ Have you ever been in a credit trap?

■ Extra: Have you watched the movie? Sure?

Sources:
■ www.mbank.pl
■ www.youtube.com