Most of the money in banks, either the one down the street or online exists only as an entry in a database. The money does not exists physically anywhere. Yes, they do keep a few percent in currency for customers that want it, but it just comes back to them when you spend it.
Banks have to keep a certain percentage of money on hand, but most banks make money by lending it to other people. So, part of your money might have been lent out to someone buying a car, or a house.
{ 3 comments… read them below or add one }
Most of the money in banks, either the one down the street or online exists only as an entry in a database. The money does not exists physically anywhere. Yes, they do keep a few percent in currency for customers that want it, but it just comes back to them when you spend it.
In a bank or financial institution. Even physical down the street banks have online banking. It is just a vehicle to access your account.
Banks have to keep a certain percentage of money on hand, but most banks make money by lending it to other people. So, part of your money might have been lent out to someone buying a car, or a house.