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The following is a guest post. Enjoy!
In the past, it was far more difficult to open a bank account than it is today, and the benefits would have been significantly lower. Nowadays, it is almost impossible to think about managing your money without a bank account. Listed below are three of their biggest benefits:
1. Effective money management
In today’s world, the largest transactions are made by electronic transfer, which means that even the most basic things, such as receiving your wages, will happen without any direct involvement from you. All you have to do is provide the necessary details of your bank account and the funds are automatically transferred on the agreed date – so you never even see it change hands.
Managing your money is therefore far easier, as you only need to take out cash needed for day to day expenses, leaving a lump sum in the account to accrue interest.
2. Safer access to your cash
Only a few decades ago, it was uncommon for people to have a credit card, but today most of us have a range of plastic cards in our pockets. Using credit cards needs to be approached with caution as they can lead to debt, but using the debit card which comes with your bank account is completely safe, as you can only use funds that you already have at your disposal.
Most people now carry very little cash and use their cards for purchases. Recent developments with near-field technology, such as contactless payment, are making it even easier to pay for goods and therefore even more important to have a bank account.
3. Save money
Having a bank account actually helps you save money too. Most companies, from energy providers to mobile phone firms, either give a discount if you pay by direct debit from your bank account, or add further costs if you choose to use another method of payment.
Having your money in an account makes it easy to transfer a set amount each month into a savings account, pension or other type of investment, so the money saving potential is endless. Using your bank account sensibly will also help you build a good credit rating, which can be extremely important when it comes to larger financial matters, such as getting a mortgage in the future.
How about you all? Would you consider having a bank account to be a “necessity” of modern life?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- Truthfully, I don’t know what my financial life would be like without my bank account.
- I use my free checking account with Bank of America as the “hub” for all of my transactions, ranging from credit card payments to receiving my salary to disbursing money to savings and investing accounts. I really couldn’t imagine what I would do without a bank account that I could make electronic transfers with!
- Aside from that, another major benefit that my bank account provides me is the access to guaranteed cashier’s checks when I need one for buying a house or moving.
***Photo courtesy of http://pixabay.com/get/0e74fac29191fba6666e/1364495837/money-29154_1920.png