Why you need a basic bank account

Bank Accounts

There are a ton of reasons why you should have a bank account, and there are many more advantages then there are disadvantages. This is why more and more people trust their money to banks every year.

Listed below are advantages of why you should have a bank account.

Safety

Putting your money into a bank account is a lot safer than keeping your money stashed in a cookie jar at home. Not only will your money be kept safe from thieves but it will also be insured by the federal government. This is for your protection as well as the banks; even if the bank is robbed or closed down your money will still be there for you.

Convenience

Having a checking account will open many doors for you. You will be able to pay for all of your transactions with a check or debit card and the money will be taken right out of your account. Not only will this make your shopping experiences easier but you will also be able to start making purchases online through your checking account.

Save Money

Having money put into a savings account will help you save money in the long term. Not only will it help you save money but you will also earn a small amount of interest.  So not only will you be saving money, but you will also be able to earn money as well. Just make sure that you look around and try to find a bank with the highest interest rates. However, if you are looking to save for your future then you would be better to opt for an IRA in something like gold, or other precious metals. You can find out more about gold IRAs at www.iragoldinvestments.org, as they offer some expert precious metals investment guides.

It’s cheap

You don’t have to worry about spending a lot of money when it comes to opening an account. Most banks these days offer free checking and savings accounts. The only thing that you need is money to deposit into your account the first time.

Forming Credit

Having a banking account will help you when it comes to building your credit history (see www.thebadcreditsite.co.uk for more information about banking with bad credit). This will help you when it comes time to try and get a loan for a house or car. It will also make it easier for you to get a loan as well. The reason for this is because most banks will help you get approved for a loan if you have a good standing within the bank.

Conclusion

So now that you know all the advantages of having a bank account you will know have an easier time picking out the right account for you.

10 Things You Need to Know About Banks

Okay so most of us know what banks are and how they work. You know that they you can put your money into an account and it will be safe and secure. You will be able to save your money and get a small percentage of interest each year as well. You can also get loans, and sign up for automatic bill pay and online banking. There may be a few things that you haven’t heard of or knew about a bank. After you have read this article you will learn about 10 things that you never knew before.

Comparing Banks

There are three different types of banks they are national, regional, and community. You can break these banks down into different categories such as:

• Credit Unions
• Mutual fund banks
• Commercial banks

The list can keep going but those are the main banks that an average person would use.

Commercial Banks

These are the most popular banks and the banks that you see everywhere. You will notice that commercial banks (see UsefulBanking for more) have many branches located all over country and they offer the most wide range services.

Savings Banks

Now these banks are typically called savings and loans. For the most part you can only get loans and have a saving account. Now with these banks you do have some benefits like lower interest rates if you qualify for a loan. You will also be able to get higher interest rates if you open a savings account.

Credit Unions

Credit unions are a community based bank. You will see that they have the lowest rates than any other bank and that’s because they are non profit bank. This means that they don’t make a profit when they do business with you.

Online Banks

Online banks are a growing trend. As long you get your paychecks direct deposited, this is probably the way to go if you have a busy life. The one thing that you need to be careful of is the fact that there are not a lot of ATM’s that online banks offer. So you can really rack up some ATM fees.

Checking Account

A checking account is by far the most convenient way to access your money and still be able to keep it safe. You will get access to your money with a debit card as well as checks. You can pay for many of your purchases with your debit card and if for some reason you can’t use that you can always write a check.

What are the Advantages of Opening A Bank Account

Instead of hiding your money around the house, a better option would be to put it in a bank account. There are many different banks and credit unions out there, each one of these will take your money and hold it for you. You can then deposit or withdrawal money any time you want.

Is It Safe?

One of the biggest things about banks is their safety. If you hide money at your home you can run the risk of it getting it stolen or it might get lost in a disaster like a flood. The money you place into a bank account is insured by the federal government. So even if the bank were to go bankrupt your money would still be safe.

Making Profits

There are some banks that will turn some of your money into a profit. Depending on what type of bank account you open you will be able to collect interest in the money that you deposit. You won’t collect a lot of interest, but it’s nice to be able to collect money in your bank account.

Paying Your Bills

A lot of banks go in with companies so that you can pay your bills online. This is a really nice benefit when it comes to having a bank account. This way you don’t have to worry about writing checks, the money will come directly out of your bank account each month. Not only can you pay your bills online, but with most banks you can have the option to get your pay check directly deposited into your account each week, or every other week depending on how you get paid. This will save you time each week because you don’t have to go to the bank to get your check cashed.

Easy Access

Instead of carrying all your money around with you and taking the chance of getting robbed you can use your debit card. Using a debit card allows you to pay for your purchases easily and quickly. You can also make withdrawals from your account with your debit card using an ATM. If you want to make larger withdrawals or you want to buy a big ticket item you can always write a check, which allows the store or person to cash the check and get the money directly from your account.

Conclusion

There are a lot of benefits when it comes to having a bank account. Just do your research and go with the bank that suits you and your needs.