A bank account offers many
benefits for you and your money. Here are five reasons you should move
your money from a piggy bank to a bank account.
It's safe. 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.
The maximum amount of money that can be insured is $250,000.
It's convenient. 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.
It's cheaper. 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
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.