Importance Of Having A Bank Account

Written by: April Lunar
05/27/2019

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It is no secret today that saving account rates are historically low. Only online-only saving accounts offer higher interest rates compared to brick-and-mortar counterparts. The good thing is that most of the online saving accounts have recently increased their rates. If you still hide your money under the mattress, use check-cashing outlets or piggy bank, I tell you are missing out many benefits of managing your money with a bank account.

Bankrate and Consumerism Commentary websites track saving rates. If you are interested in saving some cash for an emergency or specific goal, I advise you to check out these online account options.

I remember when Personal Finance Management (PFM) began to find its way into the banking sector, both financial institutions and consumers were skeptical. Consumers were reluctant to trust this new service. Whereas financial institutions struggled to find the best approach to fit the tools to their products. They had a difficult time figuring out how to make the products attractive to the customer.

PFM tools have succeeded in helping customers follow, classify, remain informed, and manage their personal. The tools have played a major role in the evolution of traditional online banking. The non-banking PFM slowly has become a competitive threat to banking solutions.

Bank accounts offer convenience

For instance, if you have a checking account, a bank has products that help you to pay easily by check or online bill pay. The approach is cheaper than buying a money order. The best thing is that you remain with prove that you have made the payments. In addition, you can withdraw your money at Automated Teller Machine (ATM). With account’s debit card can easily withdraw money or make payments at stores. Anywhere credit cards are accepted, a debit card can be accepted.

Banks accounts are safe

If you deposit your money in a bank account, the money is protected from theft and fires. Also, your money is federally insured to guarantee you that you will get back your money in case your bank closes or credit union closes. As per law, the maximum of money that can be insured is $100,000.

Banks provide an easy way to save your money

If you deposit your money in a savings account, banks offer an interest rate. The interest rate keeps your money grow if you do not withdraw it. Interest rate keeps an account holder from withdrawing because he or she is baited by it. I know you don’t want to spend more on fees than gaining in interest. For those individuals would love to checking and saving an account with the same institution, your bank can have your money periodically transferred from checking to savings. Putting the money aside can successfully help you grow your savings.

Banks generally offer their customers free or low-cost services in the following services:

Cashing checks: At the institution where you have a bank account for free, banks allow account holders to deposit or cash your checks.

Transferring/wiring money:  Don’t to send money directly to your mother’ account? Don’t worry your bank can allow you to do it within seconds. Banks allow account holders to wire money to another person’s account at a certain fee but the fee is reasonable. The fee is usually a percentage of the amount you are transferring. The fee gets expensive depending on the amount you want to transfer. The good news is that if you intend to send money to a person from the same bank, your bank usually sends a flat rate

Bank accounts can help you to access credit: Your bank account is used as a credit to acquire a home, a car, student, or personal loan. In most cases, banks tend to favor existing customers particularly the existing customers who have demonstrated that they can manage their money well. Account holders who go for small loans, the banks lend you cash quickly but such loans are often expensive because they charge lending fees and high-interest rates.

Even though banks are most preferred compared to pinky banks, they have some fees which you should be aware of. For example, banks will charge you if you use your debit on ATM that is not theirs. Also, you have to have a minimum balance of a certain amount. The minimum amount depends on the types of the bank account you have.

 You can withdraw through a phone app: Banks have made a step in making sure that you can make payment via your phone. The transaction has proved to be secure and efficient when it comes to purchasing goods or paying for services. Through the app, an account holder can request his or bank statement and get it within minutes.

In addition, the app allows account holders to send money to their loved ones; organizations or pay salaries or wages especially are small amounts.

Before choosing an account first enquire witch the banks on terms and conditions of operating the bank. For example, if deposit your money in a fixed account you can’t withdraw the money for a certain period and if you lose all the benefits. Enquiring such information is very crucial because it prepares you on what to expect. Exploring your options first empowers you with valid and verifiable information which helps to make an informed decision.

Is having a bank account worth it? Yes. It is hard to save money without a bank account. Imagine keeping your money in the house! Thieves, fire, and other calamities can rob you your money within seconds. Believe it or not, there are individuals who have chosen not to bank their money. The reason they give cannot measure up with the benefits of having a bank account. Unless you are a criminal I cannot give you a valid reason on why should not have a bank account.

No matter how small you earn, always strike to put something in your saving account. Baby steps can lead you somewhere financially unlike a person who uses small salary as an on why he or she is not saving.

 


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Importance Of Having A Bank Account

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