Lock your bank balance

[Hispo]

...
I know that it is possible to secure a deposit in the bank with any type of asset, but with the possibility of permanent disposal of it, meaning that its owner cannot ask the bank to lock it.
What I would like to ask is whether this product exists in the banking system of your country and why, in your opinion, are there central banks that do not allow it? Also, is this possible on online virtual banks?

My personal expectation is that this will be possible with some small local banks or state postal institutions. I also expect that this is not allowed in other laws because I have not heard of it much.

Well. There is little chance you or any of us will ever be able to see financial tools like that in traditional banks. Things have changed in these last twenty years in the global economy, banks do not longer see as many profits as they did bank in the early 2000s with the holding of savings of the population, the main strategy today is to capitalize out of the credit people ask to buy either things they do not need or things to survive in a daily basis.
This current economy relies much on people constantly consuming with their money and if banks gave more tools for people to be more responsible with their money, then it would be one less likely for them to need credit.
Besides, in the eyes on the holders of saving accounts, there would be no benefits from being locked out their savings. I would only consider to lock my money out my reach if their offered my extra interest for locking it all, when compared to having free access to one's capital.

Take for example what cryptocurrency exchanges do (like Binance) they have got two kinds of Earning/Saving accounts or products: flexible and locked. Locked savings always offer better annual interests than the flexible options.

Though, because of the culture of consumerism we are going through and the greed of big banks, you will never see those tools coming back, in my opinion. 

[m2017]

~snip

I believe something similar still exists in banks in my country. You make a deposit for a long period (a year or several years) during which you will not be able to withdraw money from the account, where the bonus is higher interest on the deposit. If you withdraw before the end of the deposit, all bonus interest will be lost. Perhaps this is not exactly what you are talking about, because it is not a complete freezing of the account for a certain period of time, but I can’t remember anything more similar.

I am not a supporter of using banking services and such deposits don't seem profitable to me at all, because you lose control over your assets (the impossibility of profitable investment that suddenly arises), and the accrued interest is simply ridiculous (lags behind inflation).

If you want a profitable concept with freezing money, beneficial for you and without the temporary opportunity to use this money, then maybe you should pay attention to investments? Like in the securities market or cryptocurrencies? The invested money is frozen until a profit is made. This will certainly be more profitable than storing money in bank deposits.

[WillyAp]

in the country I live in it was possible and you got interest on the amount. Not much though.
The bank worked with the  "frozen capital".

[Patrol69]

I already keep relatively little money in the bank. In addition to the amount of money that I can spend in a month, in case of some emergency, I keep some money in the bank and the rest of the money I do not use in my business or invest. It is a bit stupid for me to keep a lot of money in the bank because I am depositing money with the bank but the bank will not deposit that money of course they will lend that money in various ways and by lending my money they will earn profit. Why don't I use the money that the bank will lend to others for my business or investment, if I use my money for investment or business then the profit that will come is my profit. Basically, thinking about these things, I keep some amount of money in the bank only to meet my needs and with the rest of the money, I make some other plans.

[Fiatless]

I know that it is possible to secure a deposit in the bank with any type of asset, but with the possibility of permanent disposal of it, meaning that its owner cannot ask the bank to lock it.
What I would like to ask is whether this product exists in the banking system of your country and why, in your opinion, are there central banks that do not allow it? Also, is this possible on online virtual banks?

Product or services like this one might not be attractive anymore. The world is full of uncertainties that even when you plan there are always unforeseen occurrences. One might assume that anyone who subscribed to this package should have emergency funds that will serve as backup but sometimes these funds are not enough. So you expect someone with health problems to die because of a lack of finances while they have money locked up in a bank or post office. Savings are for the living and not the dead. We all know that it is important to save but there should be an avenue for people to access these funds in times of emergencies. This is why banks provide services like fixed deposits and other savings plans.

I don't think any bank offers such a service except it could be a personal or special agreement with the local bank. I don't know if the central bank of my country approves such service but I think it it might affect the monetary policy of the country especially if it is in foreign currencies like the dollar. I would never advise anyone to engage online virtual banks for these services. Most of these online banks are not under the supervision of the central banks and they can easily scam customers.

[o48o]

In my country, until the mid-2000s, the Postal institution enabled its savers to partially or completely freeze their balances for a specific period of time, provided that the freeze on the amount would not be lifted regardless of whatever reasons, even in if the person’s death. This product was not available in banks as I recall, but since the 2000s this product has been completely abandoned. When I think about the concept, I find it very useful and it can serve the financial institution and the saver as well, especially those who want to secure their savings so that they never think about using it. I think that there are many reasons that might encourage a person to do this according to his assessment of his needs in the medium and long term. The financial institution will also benefit from the liquidity that it will accumulate from the frozen balances, in addition to the possibility to impose fees for the service.

I know that it is possible to secure a deposit in the bank with any type of asset, but with the possibility of permanent disposal of it, meaning that its owner cannot ask the bank to lock it.
What I would like to ask is whether this product exists in the banking system of your country and why, in your opinion, are there central banks that do not allow it? Also, is this possible on online virtual banks?

My personal expectation is that this will be possible with some small local banks or state postal institutions. I also expect that this is not allowed in other laws because I have not heard of it much.

I am not certain if that's legally possible in ways you are desribing, unless you move your rights to a legal guardian, and even that could be in trouble if there's no legit reason not to give you your money.
Financial institutions have legal duty to give you access to your funds if you change your mind. Thing about consent is that you usually can withdraw that at any time. Even most products that you buy, customer has a right to change their mind for a time period and cancel the trade.

That said, i am not an expert in this and there might be workarounds that i don't know of, as there are all sorts of weird tax avoidance tricks that rich people use and i am sure that many of them rely on not moving money from their account.

And in EU we can set bank accounts for our kids that only they can only access when they are certain age, but that's because parents are their legal guardians and their word have more weight then their underaged kids.

I think there are some ways that you can lock your funds in usdt or eth or some other crypto to smart contract with a lock that opens only after certain time has passed, but i wouldn't recommend that ever. You never know what's going to happen and access to that money could save your life.

[Dr.Bitcoin_Strange]

Okay, below is just a screenshot I took right now from a microfinance bank pp I am using. The microfinance bank has three saving plans, as you can see in the picture. The fixed saving and locked saving are almost the same thing, but for the locked savings, you have to keep the specific amounts locked for a stipulated period of time that you want the savings to last. The interest rate is very small, just 16% per annum. Although you can break the safe if you want, you will lose all accumulated profit if you break the safe when the savings period is not yet due. I don't totally like that pattern of saving because, despite the fact that it's a lock savings, the annual percentage profit is too cheap. The only benefit of it is to prevent oneself from spending the money they were not supposed to or to save the money towards a goal they are planning to achieve in the future. In my country, some other banks have such savings plans too, while for some, you can not brake the safe until the time is due.

[jrrsparkles]

If I am not wrong some banks are offering such services, locking certain amount for certain period of time or just pay monthly payment and it will give maturity value of certain amount which is higher than a common savings account. But who does want such schemes? Do you like your funds to be locked somewhere and you can't access it even if you want?

I find people don't like such idea that's why it's not available and for someone who look for similar can invest on bonds and gold which is actually better than getting returns in Fiat.

[GeorgeJohn]

This is not bad but you better not lock the only amount of money that you have. If you have a goal and you’re saving towards it, I hope you know to have emergency funds too, so if something unplanned happens, you will not worry on how to access the locked funds but use the emergency fund. If you don’t plan this way, you could get stuck someday with no one to rescue you. You’d have your funds locked but can’t access it to help yourself.

when is that nobody invest with the real money or the money that he can touch at any point in time so the money someone can serve is a money that will called a spare money which you don't have anything that you can do with it and when problem come across you you will not touch the money to solve your problem so that is what you called investment money and also a spare money so many people mistakenly use their money they will use for settlement of their needs to involve into investment that is why mostly they find it very difficult to unlock their savings make use of the money they have been saving for a long-term.

[sekalitas]

In my country, until the mid-2000s, the Postal institution enabled its savers to partially or completely freeze their balances for a specific period of time, provided that the freeze on the amount would not be lifted regardless of whatever reasons, even in if the person’s death. This product was not available in banks as I recall, but since the 2000s this product has been completely abandoned. When I think about the concept, I find it very useful and it can serve the financial institution and the saver as well, especially those who want to secure their savings so that they never think about using it. I think that there are many reasons that might encourage a person to do this according to his assessment of his needs in the medium and long term. The financial institution will also benefit from the liquidity that it will accumulate from the frozen balances, in addition to the possibility to impose fees for the service.

I know that it is possible to secure a deposit in the bank with any type of asset, but with the possibility of permanent disposal of it, meaning that its owner cannot ask the bank to lock it.
What I would like to ask is whether this product exists in the banking system of your country and why, in your opinion, are there central banks that do not allow it? Also, is this possible on online virtual banks?

My personal expectation is that this will be possible with some small local banks or state postal institutions. I also expect that this is not allowed in other laws because I have not heard of it much.

In my country, we have Fixed Deposit Accounts (Deposito) that offer higher interest rates but lock funds for set periods (usually 1-12 months) with penalties for early withdrawals. For less restrictive options, online banks like Jago offer "tabungan terkunci" (locked savings) with more flexibility, such as lock periods as short as 14 days.

I believe the concept of completely freezing funds long-term is not widely used for several reasons. Firstly, it reduces banks' ability to lend to businesses and individuals, potentially hindering economic growth. Secondly, frozen deposits could worsen a crisis during economic uncertainty if banks struggle to meet customers' withdrawal needs during a potential run

[moneystery]

as far as i know, in my country there are several banks that provide deposit locking for their customers.  later customers can join this program and then they can lock their savings with a minimum lock of 1 year.  later customers will get interest on the savings they lock, usually the interest will follow the state interest rate.  if customers need the money, they can unlock it and then withdraw their money, but if they do that they will not get interest on the savings.

[kryptqnick]

I don't like the idea of freezing my own money. If one has a problem (like an addiction), then one should give someone else access to managing one's funds. If one's trying to save money, it's often possible to just dedicate a separate card for it (or put it into something like government bonds). You can also put the money in a deposit account, which kind of freezes it as well, and you get at least a bit of interest rate out of it, too.
I'm sure the financial institution will benefit from keeping the money of the clients, but I don't understand the appeal of it to clients themselves.

[avikz]

What I would like to ask is whether this product exists in the banking system of your country and why, in your opinion, are there central banks that do not allow it? Also, is this possible on online virtual banks?

No! Sach product does not exist in the banking system of my country. I can see a clear problem in this product. You have mentioned that the money is locked even if the owner dies. Which means the money will remain unclaimed within the banking system. That's a clear problem in this product and probably that is the reason why it has been discontinued.

We can control the amount of money spent from our bank accounts or using plastic cards. But a complete lock is not available.

[shinratensei_]

If I am not wrong some banks are offering such services, locking certain amount for certain period of time or just pay monthly payment and it will give maturity value of certain amount which is higher than a common savings account. But who does want such schemes? Do you like your funds to be locked somewhere and you can't access it even if you want?

I find people don't like such idea that's why it's not available and for someone who look for similar can invest on bonds and gold which is actually better than getting returns in Fiat.

there are some people out there that lock their money in deposits just because they have no idea what should they do with their unused money or they simply try to get more privileges from the bank, such as credit card with raised limits and so on I think it only target that kind of specific people or at least people with money that just don't really like investing by themselves but want to have managed investment and they are fine with the low interests.

personally i'm never ever attracted to this kind of investment seems like a waste of time honestly, the interests just aren't worth it for the time its getting locked could easily get that much return within a night just from crypto alone so its no point for me but I can see that sometime if someone's wealth is too much they might want to diversify and its completely fine but honestly even that maybe better off investing in gold or any other precious metal.

[Adbitco]

I don't think such a thing long exit in our banking system of nowadays, I can remember that when a person is operating in certain account he can write to bank to either limit himself from having access to that account until some certain period of time or duration, maybe the moment he feels can control the account then he would have to write back to bank or even phone his manager to give back access to him to enable him have access to his money. This could likely be an account that is being open and created in the name of unborn baby, as the time goes or it happened the sole signatory of the account is no long there presently operate and give access to unborn when such person might have come of age, then the mother or relative can with a certification of death to prove that he or she can have access back to the account.

[harapan]

For real I have seen such features in an online banking app here in my country, although it helps to save funds that will be spent in nearest days but not as a life time savings because it's absolutely a bad idea to keep good amount of money in the bank where it will depreciate in value as time goes on.

There are times that one might need this money's and then It becomes stressful to begin to find how to get the money when you have them locked some where, if we want to store a money then I suggest you use crypto (bitcoin) to keep then perhaps it will be very.

Whenever you keep money in the bank,it depreciates and reduces in value,but whatever the case may be,it is aslo good to save,save as much as you can.If the banking systems or bank institution are unfavorable and inaccessible to you then there could be other ways to save and invest the money,don't just sit there and get disappointed with the banking systems.

Actually,personally,I'm not in support of the fact of locking account balance or bank balance.instead of locking account balance why not you reconsider putting the money in the bank in the firs guyt place.You'll have unforseen needs and events.So locking your money In the banks not only restricts you from using,it puts you in a position of lack,financial Stagnation.

[Oneandpure]

In my country called with deposit and lock your money around several years later earn interest under 10% depend on how long your money lock in the bank, actually I don't thin its worth with how much inflation facing year by year and deposit money or lock in the bank more than three until five years later. Put your money in stock or use for building business more profitable and easily raise up more than 100% without waiting for until three to five years later based on interest offer from Bank.
In my opinion, than you lock your money in the bank better put hold on in stable cryptocurrency assets such as USDT and staking in Binance or bybit with bigger offer giving from APY around 10% each year and potential earn new coins trough launchpool or farming project.

[letteredhub]

In my country, until the mid-2000s, the Postal institution enabled its savers to partially or completely freeze their balances for a specific period of time, provided that the freeze on the amount would not be lifted regardless of whatever reasons, even in if the person’s death. This product was not available in banks as I recall, but since the 2000s this product has been completely abandoned. When I think about the concept, I find it very useful and it can serve the financial institution and the saver as well, especially those who want to secure their savings so that they never think about using it. I think that there are many reasons that might encourage a person to do this according to his assessment of his needs in the medium and long term. The financial institution will also benefit from the liquidity that it will accumulate from the frozen balances, in addition to the possibility to impose fees for the service.

I know that it is possible to secure a deposit in the bank with any type of asset, but with the possibility of permanent disposal of it, meaning that its owner cannot ask the bank to lock it.
What I would like to ask is whether this product exists in the banking system of your country and why, in your opinion, are there central banks that do not allow it? Also, is this possible on online virtual banks?

My personal expectation is that this will be possible with some small local banks or state postal institutions. I also expect that this is not allowed in other laws because I have not heard of it much.

Never heard of this option with traditional banks and except that's the name given to it in your part of the worth, because from your explanation it's similar to what we called fixed-deposit over here in my country which I believe a few persons would know about.

In fixed deposit you can't make withdrawal not until the agreed fixed period with the bank has expired, many people I know who make use of traditional banking for savings do make use of the fixed deposit against a planned project they will want to use the money for after a certain period of time. What I don't know is whether in the death of the depositor if his next week of kin could tender a death certificate to assume possession of the money before the agreed fixed time elapses.

[Pi-network314159]

In my country, until the mid-2000s, the Postal institution enabled its savers to partially or completely freeze their balances for a specific period of time, provided that the freeze on the amount would not be lifted regardless of whatever reasons, even in if the person’s death. This product was not available in banks as I recall, but since the 2000s this product has been completely abandoned. When I think about the concept, I find it very useful and it can serve the financial institution and the saver as well, especially those who want to secure their savings so that they never think about using it. I think that there are many reasons that might encourage a person to do this according to his assessment of his needs in the medium and long term. The financial institution will also benefit from the liquidity that it will accumulate from the frozen balances, in addition to the possibility to impose fees for the service.

This procedure may work for them during the 2000s but wouldn't be needful now. expecially now that cryptocurrency Bitcoin is in existence. Locking down fund in the bank is just a total waste of time. Bank will use your fund to loan some organisations or use it to do other business that will increase there fund and make more profit and leave your fund to suffer for inflation after some years with no interest. It is better I use my money to invest in Bitcoin and leave it there than locking it in the bank.

[Jating]

In my country, until the mid-2000s, the Postal institution enabled its savers to partially or completely freeze their balances for a specific period of time, provided that the freeze on the amount would not be lifted regardless of whatever reasons, even in if the person’s death. This product was not available in banks as I recall, but since the 2000s this product has been completely abandoned. When I think about the concept, I find it very useful and it can serve the financial institution and the saver as well, especially those who want to secure their savings so that they never think about using it. I think that there are many reasons that might encourage a person to do this according to his assessment of his needs in the medium and long term. The financial institution will also benefit from the liquidity that it will accumulate from the frozen balances, in addition to the possibility to impose fees for the service.

This procedure may work for them during the 2000s but wouldn't be needful now. expecially now that cryptocurrency Bitcoin is in existence. Locking down fund in the bank is just a total waste of time. Bank will use your fund to loan some organisations or use it to do other business that will increase there fund and make more profit and leave your fund to suffer for inflation after some years with no interest. It is better I use my money to invest in Bitcoin and leave it there than locking it in the bank.

It's time deposit right? Yeah, even in my country it was prevalent in the 2000's or as we thought so. I think it was a good program that people think back then and then the banks put up a good promotion that you will earn money will sitting it in their bank.

But later, we found out that it will not worth something because of the small percentage that they are giving to it's customers, and then because of inflation, your money will have no value once the terms expire.