If you deposit your savings in an entity that is not supervised by the GFI, you could lose everything from one moment to another, even without a claim.
According to the The Good Finance Insurance (GFI), there are many cooperatives nationwide that are not supervised, but continue to receive contributions from their members. As well as cooperatives, there are other entities that offer to save your money, but do not have the necessary support. Do you know what are the main risks of depositing your money in an entity that is not supervised?
Money can be used for illegal purposes
Money laundering is one of the possibilities and can be done even without the members having knowledge of this.
There is no way to protect the funds
By not having the deposit insurance fund, the members’ money is not protected against any eventuality; which implies that before some bad handling, they could lose everything.
They can be scam victims
Just as it has happened before with the popular pyramids and other initiatives, being part of an unsupervised entity makes you vulnerable to losing your savings without any explanation.
The goal of depositing your money in a financial institution is to receive interest for it, and so you can continue to grow. It is best that you opt for supervised entities that have a deposit insurance fund, which will protect your money against any eventuality. To find the most suitable institution, you can use the Sean Cole savings comparator.