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Do I Need a Bank Account?

Jul 19, 2021

In short, yes, you need a bank account. According to statistics, approximately 7 million households in the United States do not have a bank account. If you are an individual that has yet to get your account, now is the time. Not only will this help protect your money, it will help save you time and reduce the hassle of having to cash checks in person and paying check-cashing fees, having to pay bills in person, and find a safe location to manually store your cash.

Young Girl Bank Account
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What Are the Benefits of Having a Bank Account?

There are many advantages to having your own bank account. The following outlines these benefits:

  1. First and foremost, a bank account helps keep your money safe. If you store your money in your home, you are not only putting yourself at risk for experiencing theft, but other situations may occur that could destroy your money. Examples include flooding, fire, and similar events. When you put your money in a bank account, it is protected through FDIC insurance. Regardless of situations, events, and even disasters – your money will remain in the bank and remain safe.
  2. Most bank accounts are insured by the FDIC. When opening your account, it is important that you only opt for those covered by the FDIC. If you do, the money that you place in your account will automatically be safe – even if the bank itself fails.
  3. If you have a bank account and an unauthorized charge or transaction occurs, there are federal laws in place that will help in your protection. All you have to do is report the unauthorized activities in a timely fashion.
  4. If you have a bank account, you can have your check automatically deposited in the account – and not incur any check-cashing fees. Additionally, you will gain access to your money more quickly.
  5. By having a bank account, you can make purchases and pay bills easily online – without even living your home. Most accounts will provide you with a debit card to use for these purposes. You may also opt to have checks that you may use for purchases and to pay by mail.
  6. By obtaining a bank account, you will develop a relationship with the financial institution where you have your account. In turn, this means that you can gain access to other types of financial products. These are designed to banking customers to help them achieve their financial goals. Examples of these services include credit cards, mortgage products, home improvement loans, auto loans, personal loans, and more!
  7. When you have a bank account, you will find that you can keep track of all of your spending through your monthly statement that you receive. This tracks the money that you deposit, withdraw, the checks that you write, and all of your debit card transactions. By tracking your spending, you will have the capability of setting up a budget, identifying areas where you can save money, and keep an eye on your monthly balances.
  8. When you establish a bank account, you can set up many useful alerts through mobile banking services. These can alert you if you account reaches a certain amount, can assist in avoiding fees associated with overdrafts, and even alert you of activities that appear to be suspicious. Once you contact the bank of your choice to initiate the opening of the account, you should inquire about the alerts and other services that you will gain access to.
  9. When you have a bank account, you will be able to transfer money to others with ease. This helps prevent you from giving cash, writing checks, and swiping your debit card and/or credit card. Not only is this a huge benefit, but it always you proof of the transaction.
  10. Having a bank account provides you with financial banking. For example, if you want to take out a loan of some type, most lenders prefer that you have a bank account in place to receive the money and to set up payments for the pay back of the loan. It actually helps in building your financial reputation.

Opening a Bank Account

Now that you know the many benefits associated with opening a bank account, it is time to get your account started. It is advised that you choose a checkless account that comes with a debit card for transactions. In addition to having ease of access to your money, having an account with a debit card will help in paying your bills, making online purchases, and transferring money to others quickly.

You should look for accounts that are either free or have very low fees. It is also important to choose no overdraft and nonsufficient fund fees. When shopping for your bank account, you will find that most of these also offer free withdrawals and usage of the ATM at the branch for absolutely free. There are many programs and types of accounts that you may explore and utilize when you open a checking account.

Getting a bank account and maintaining that bank account will aid in promoting your financial-based well-being. We here at Somerville Bank offer many different types of accounts that you may benefit from. We specialize in providing products and services that are low-in-cost for our clients. We have specialized in this industry for over 11 decades. You will get the loyalty of a local establishment with all the perks offered by nationwide financial institutions.

Our products and services include various types of lending products, deposit accounts, mobile banking, and more! If you are a shareholder, we also offer outstanding returns on all investments. We recently underwent a revamp on our online banking services that will help in optimizing your overall experience with us. If you are new to the banking industry, we can assist you in navigating this new and exciting world. For more information on the accounts and services that we offer, visit one of our many locations today: https://somervillebank.net/locations/