What are the advantages and disadvantages of investing money with the bank?

Question

What are the advantages and disadvantages of investing money with the bank?

Answer 1

If you put money into a bank's savings account or certificate of deposit, the first $100,000 is insured by the government. So if the bank fails, the government will reimburse you the money.

Plus, there can be something comforting in this online world about going into an actual brick and mortar building where real people greet and smile at you.

Also, banks generally invest fairly conservatively, so there's less risk of loss.

(This point could be argued, though, considering the real estate bubble connected with the savings and loan scandals of years ago, the huge write offs on loans to the developing world, and -- most lately -- the subprine mortgage mess.)