Ever wondered if you really need a bank account especially when banks are constantly charging you fees? This post provides an insight on why you need a bank account and what benefits bank can provide that will outweigh the costs associated with maintaining a bank account.
With banks’ continued practice of charging its customers with fees and penalties, you probably have wondered if it still a good idea to keep your money in the banks. For many people, Bank accounts give them more headaches than security. I can’t blame them because of the fees and penalties that banks charge their customers. On the other hand, I can’t also blame the banks for charging their customers because it’s part of doing business with the banks.
You may think that parking your money in the banks seems like trouble than a solution to you. Having said that, a lot of people still believe that it is still better to put your funds in the banks than keep them under your mattress.
Of course, as a customer with needs that may or may not be different from other people, you should always ask why if it is still a good idea to put your money in the banks. Do you want to put your money because you don’t want to run the risk of losing your money in your house? Or do you not like the idea of carrying cash with you everywhere and wherever you go?
Why You Still Need A Bank Account
Personally, I would say that putting your money in the bank is still a great idea. Here are the reasons that support my statement.
Your money is safe with the banks. The Federal Deposit Insurance Corporation (FDIC) insures the depositor’s money up to $250,000. Deposits held in various ownership categories are insured separately, if held at the same bank. This protection cannot be said if you just keep your money under your mattress, to say the least.
If you have relatives who you want to bring to the United States from overseas, bank statements are a must. These statements can be or are used as supporting documents for immigration applications you filed in behalf of your relatives from overseas. To be exact, these statements are used as financial proof for immigration. Without such information, it may be difficult for you to petition your relatives to get to the US.
According to the American Payroll Association Survey, about 96% of the U.S. employees get their paycheck through direct deposits. According to Paycor, depending on state laws, companies can require employees to receive payments through direct deposit.
Direct deposits can be required by companies as a condition for employment but they cannot require them to open accounts with specific banks. If you don’t have and don’t want to open a Bank Account, then, your potential employer may not extend you a job offer.
Don’t you just hate carrying a ton of cash in your wallet? If that’s the case, then, you may still need to maintain a bank account. Instead of carrying cash, you can have your checks and debit cards with you everywhere you go. You can use them to pay for your purchases, thus, reducing your need to carry cash.
In addition, with checking accounts, you are able to deposit and withdraw money whenever you desire. If you happen to have mobile banking and app, you are also able to deposit your checks just by taking their pictures and sending them via the mobile app. If you need to see your transaction history, you can easily pull up the information online, by phone, or via the mobile app.
Imagine you need to pay your bill. If you don’t have a bank account, you will need to get a money order, get a postage stamp, and then, mail the payment. Aside from the costs associated with such activity, you are also consuming time and effort in the process. Wouldn’t it be nice to just go online and pay the bill right away? Personally, I think it would really be nice.
5. Financial capability
If you ever have a plan of buying a house, starting a business, and others, you may have a difficulty getting approved for any loans or mortgages if you don’t have a bank account. Banks look at the capacity of the customers to pay for debts and they look closely at the customers’ financial capability. To do this, they look into the bank account(s) of the customers. If you are the customer seeking loans from the banks, the banks will verify your assets by looking at your bank statements aside from other supporting documents.
6. Cost effectiveness
Some banks offer free bank accounts. Having these accounts can be more cost effective than cashing your paycheck or any checks through cash-checking service. Some check-cashing stores charge a fee for checks cashed through them. Stores typically charge between 2.5 and 5% of the total amount of the check. So, if you have a $100 check and the stores charge 5%, then, you’ll only get $95. If you have multiple checks to cash, you will be better off by opening an account with banks even if they charge $5.
Some banks charge a small fee for money orders and some don’t charge anything at all. If you need to get a money order, you may pay more if you go to the postal office to get your money order or go somewhere else to do just that.
These are just some examples of the fees that you will have to pay if you don’t have bank accounts.
Have you ever been in situations where you dealt with a bill payer who stated you haven’t paid when in fact you did? If you have a bank account and paid using a check or your debit card, then, it’s easier for you to provide the payer the supporting document. But what if you didn’t have any backup or you have lost your backup information? You may be looking at paying the bill again. Worse, you may have to pay additional fees that the bill payer will charge.
If you have an interest-bearing bank account, the bank will pay your account some interest even when it is minimal. I know that I’d rather receive small interest than not have anything at all. I’d rather put my money in the bank and earn a little bit of interest than keep my money in the house.
Whenever you feel like you don’t need to open or continue to have a bank account, always take time to understand the advantages of having a bank account over not having one.
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