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What are the upsides and downsides of a full reserve bank?
What are the upsides and downsides of a full reserve bank?
Updated over a week ago

Upsides of Full Reserve Banking

Safety First

Think of full reserve banking like a super-secure piggy bank. It keeps all your money safe and sound, so you can get it back whenever you want. This makes it super unlikely for the bank to run out of money if a lot of people want to withdraw their cash at the same time.

Peace of Mind

Since your money isn't being lent out, you don't have to worry about the bank losing it in bad loans or investments. This can be really comforting, especially in uncertain times.

Simple and Straightforward

With full reserve banking, what you see is what you get. Your money is there, it stays there, and it's ready for you when you need it.

Downsides of Full Reserve Banking


You might not earn much (or any) interest on the money in your full reserve account. Since the bank isn't using your money to make loans or investments, it's not making money from your deposit, which means less profit to share with you.

ORO Bank offers other products such as time / term deposits, allowing you to control how much of your funds are invested in interest bearing products (coming soon).

Possible Fees

To make up for not lending out money, full reserve banks might charge you fees for using their services. This is how they can afford to keep the lights on and offer that high level of security.

You can enjoy ORO Bank’s services without any fees. There are no account opening fees, no maintenance fees, and no overdraft fees.

Limited Services

While they can still offer loans through separate accounts (e.g. time/term-deposits), the range of services might be more limited compared to traditional banks. This could mean fewer options for you when it comes to investing your money or getting a loan.

Learn more about Full Reserve Banking at

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