Six Important Benefits Of Maintaining A Bank Account

2019/02/25

Almost every individual holds a bank account. Requirements for opening a bank account may vary from bank to bank. However, it is advisable to hold at least one bank account with a recognized bank.

Over the years, bank account has become the preferred medium for receipt and disbursement of money. A bank account can be used to make transactions throughout the world.

Six Important Benefits Of Maintaining A Bank Account Are As Follows:

a) Interest Income With A Bank Account:

Banks provide interest on funds maintained in savings bank account. As the amount of balance in an account increases, the amount of interest also increases. This interest income would not have been available in the absence of a bank account.

Hence, by maintaining a bank account, an individual is able to generate more income without making any special effort. Interest is normally credited by the bank on a periodical basis as per the bank’s policy.

b) Debit Card Facility With A Bank Account:

Banks issue debit cards to their account holders. With a debit card, an individual can perform various banking transactions without any need to go to his/her bank. Further, debit card can also be used for making various payments in connection with purchases made at a retail outlet or in case of any online transaction.

c) Security With A Bank Account:

A bank account offers more security to the account holder by reducing the need to maintain large amounts of cash at his/her home.  Further, access to funds is available only to the account holder which minimizes the possibility of theft and any other kind of fraudulent transaction. The account holder can keep himself/herself updated on all the transactions by using online facility or by using the debit card facility.

d) Check Facility With A Bank Account:

For many types of payments we require a check to be issued in favor of the beneficiary. A check facility can be availed only if an individual has a bank account. A check offers more security in comparison to cash as a check can be drawn in favor of a particular beneficiary thereby reducing the possibility of misuse by anyone.

Further, carrying a check is much easier and secure than carrying cash. Facilities like stop payment can help the account holder to avoid payments for transactions in case of any dispute with the vendor or the beneficiary.

e) Online Facility With A Bank Account:

Every account holder can avail of online banking facility.This facility can be used to make online purchase or online transfer to other bank accounts. Online facility reduces the need to issue and deposit a check in the beneficiary’s account.

Online transactions are much faster and take less time in processing.Further all transactions can be easily tracked with the help of online facility.

f) Loan Facility With A Bank Account:

It becomes easier to obtain a loan in case an individual has a bank account. Many banks and financial institutions require bank statements in order to verify the credibility of the loan applicant and to process the loan application. On the basis of account balance, different banks and financial institutions may offer lower rates of interest.

Photo Credit: mybanktracker.com

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