were banks a safer place to keep your money than the stock market during the great depression???

Not really. Banks failed when people withdrew their savings from them…there was nothing really backing the accounts. Banks are lending institutions, and when borrowers defaulted on their loans, banks were left with collateral that was useless to them because values fell. The whole mess was why the Federal Deposit Insurance Corp was developed. Bank accounts are insured up to a certain amount.

No. Banks loan out money so they don’t have every penny deposited on hand to give out if you ask for it. During the depression people needed cash so the went to withdraw the money all at once. This was called a run on the bank and caused mass hysteria when the bank could not give out all money asked for. Watch “its a wonderful life” and you could get an idea.