The European deposit protection is fixed at €100000 pr. customer instead of a percentage. They are not allowed to use customer savings for their own investment or loan outs. It’s handled completely separately…
Regardless of guarantee, the bank earns a lot more on loans than deposits, so their advisors will always try to push their loan products even when you have money in the bank. They want the customer to be in debt to them. That’s how banks earn money and always have.
The idea that a bank is some kind of piggy bank where they use customer deposits for investment is a bedside story. They loan money to loan out and then take a cut. It’s loans all the way.
Banks have no interest in plain deposit accounts except for being a point of contact to the customer so they can sell loans.
They do make money on those accounts as they only have to keep 10% of it to hand and can loan out the other 90
The European deposit protection is fixed at €100000 pr. customer instead of a percentage. They are not allowed to use customer savings for their own investment or loan outs. It’s handled completely separately…
Regardless of guarantee, the bank earns a lot more on loans than deposits, so their advisors will always try to push their loan products even when you have money in the bank. They want the customer to be in debt to them. That’s how banks earn money and always have.
The idea that a bank is some kind of piggy bank where they use customer deposits for investment is a bedside story. They loan money to loan out and then take a cut. It’s loans all the way. Banks have no interest in plain deposit accounts except for being a point of contact to the customer so they can sell loans.