What does depositing funds in a bank do for your clients? Because the deposit is insured, the bank can pay a return. This is a sort of government-guaranteed return for depositors, and it makes business very flexible. A client can go in and get the funds practically whenever they want – they’re available nearly immediately. It’s also easy for clients to make payments, take withdrawals, and make more deposits. This is a very useful way for a customer to get a return, to have it insured, and guaranteed. No other institutions can offer that. What that does for the bank is give the bank a really great source of funds to make loans. Yes, this power of deposits being insured and guaranteed comes with regulatory costs – banks are stiffly regulated. Nonetheless, this is a very valuable component for the bank.
Banking services continue to advance as technology continues to change the way people bank and purchase. Brent Farley is the managing member of Farley Law, PLLC
Farley Law, PLLC helps business owners identify business and legal strategies they can use to protect business and personal assets, increase and keep more income, and increase peace of mind regarding the way their business operates. Have a question or a comment? Send us a note at business@farleylawpllc.com, or set up an introductory call using our bookings service.