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5….uhhh 6 Reasons Why You Need A Banking Account

Convenience

Having a checking account where you can deposit checks, being able to use a debit card to make purchases and withdraw money from ATMs all help reduce the need to carry cash. As the world becomes more and more reliant on new technology, carrying cash will seem old-fashioned and being “electronic” will be the standard. And there are advantages to being able to bank online: You can pay bills and keep track of your spending. You can have checks automatically deposited into your account. You can avoid paying for money orders. Plus, you have access to your bank 24/7.

It’s Cheaper

If your using check cashers, pay day loans, etc. then you are exposing yourself, to what can amount to, exorbant fees and a cycle of debt. Why pay to be able to spend your hard-earned money when you can deposit and cash your check through a bank for free?

Safer than Your Mattress

Sure, many banks fell victim to the current economic crisis. But, if you’re bank was insured by the FDIC (which most are) and you had less than $200,000 in your accent, you were OK. When you horde cash money in your house or some other storage, you risk losing it to an accident, theft, or some unexpected circumstance. But, even if you store your money in a 30-inch thick safe with fingerprint detection it does nothing against protecting you from the ever omnipresent inflation. Which brings me to my last reason…

Protection from Rising Costs

How much does a loaf of wheat bread cost in the store today? How much did that same loaf of bread cost…10 years ago? Inflation shows that rising costs can and will affect everything, from your turkey sandwich to gas. If your money is stored under your bed, unfortunately, $1,000 in 1960 would still be worth $1,000 in 2009.

Put it this way. In 1967 you could buy a new Camaro for $3,000. A new Camaro now would cost you at least $25,000. Imagine if you had been saving in cash to buy a new Camaro. When you finally reached your $3,000 you would’ve only saved 12% of the new price of that car. If you don’t store your money in an interest-bearing account you miss out on the opportunity to make your money grow with inflation. Honestly, the interest you earn is not all that spectacular. But, at least you can have your money grow faster then prices do.

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