A common mistake made by people who have an open-ended bank account is thinking they can use the money to buy a car, a house or other real-world items.
But this isn’t necessarily the case, says the Central Bank of Argentina (CBIA), which issued a warning on Thursday that people should be careful about what they are spending their money on.
“If you invest a lot in real estate, you can easily lose your money, because you are spending it on real-estate instead of real-life needs,” said CBIA President Jose Antonio Armas.
“In the case of consumer debt, you are only investing in debt that you can repay.
If you want to buy something, you don’t have to worry about saving up money for the future.”
The CBIA says it has issued warnings in the past for this kind of behaviour, but this time it’s more specific about the types of assets you can spend the money on, and why.
The warning states that the CBIA can issue a warning if the amount you have in your account is “above an authorised amount of US$2,500” for “non-financial personal or corporate debts” or “less than US$1,000” for a non-financial corporate debt.
The bank also warns that it’s a “criminal offence” if you “spend the money in a way that puts your financial health in danger”.
It adds that this warning applies to anyone with an open bank account, regardless of whether or not you are a citizen of Argentina or a foreigner.
The CBICA has also issued warnings for using an open account for credit cards, mortgage or bank account purchases, and for buying “personal items, such as clothing, shoes, jewellery, watches, jewelled accessories, mobile phones, computers and mobile phones chargers, credit cards and debit cards, as well as mobile phones and mobile telephones.”
It says you should avoid investing in these types of things if you have an unsecured loan.
“You need to make sure that the credit card or bank card is not going to a credit card company or credit union,” said Armas in a statement.
It is always a good idea to keep the account in a safe and secure environment.”