Your money will be safe from theft and fires. In addition, your money will be federally insured. So, even if your bank or credit union closes, you will get your money back. At the time of this writing, the maximum amount of money that can be insured is $250,000.
Checking accounts offer many benefits. Paying by check is much easier and cheaper than buying a money order (and you’ll have proof that you paid your bills). If you get an Automated Teller Machine (ATM) or debit card for the account, you can withdraw money easily or make payments at stores. A debit card is usually accepted for purchases anywhere credit cards are accepted.
It’s an easy way to save money.
Many banks offer a small interest rate when you put your money in a savings account. The interest will help your money grow over time. Depending on the type of account you open, be sure to shop around and check what fees are involved. You don’t want to wind up paying more in fees than you are gaining in interest.
Banks and credit unions generally offer their account holders free or low-cost services, such as free check cashing or low-cost money wiring. Learn more on how to avoid fees from non-banking institutions
It can help you access credit.
Your chances of obtaining a home, automobile, student or personal loan are likely to improve because banks tend to favor their existing customers. Of course, you need to manage your money well and have a good credit report first (a topic we will address in an upcoming Curtis Money Blog post).
There is a certain Buddhistic calm that comes from having….money in the bank.
― Tom Robbins