People from all walks of life can benefit from banking services such as savings accounts and loans. Not only is a bank a secure way to save money for future needs, but transactional accounts can also provide a safe way to receive paychecks and government assistance, and bank lending programs fuel businesses of all sizes.
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Banks do not store your money in physical cash, and most will have several backups for the data used to track and verify transactions, account information and balances. It is safer to store your savings in a bank account than under your mattress for the simple reason that it is much harder for digital currency to be destroyed in a fire. The institution will even have insurance plans for secure savings accounts to help recover losses if something does go wrong with their data storage. Industry professionals like Kevin Cohee will be quick to tell you that a secure savings account can also benefit you with earned interest. The money you deposit and save in a bank is used to fund lending programs with that institution. The bank will earn interest on mortgages, credit lines and loans from those programs and will share that interest in the form of a percentage of your account balance.
Safe Check Cashing
One of the most significant benefits of banking access for individuals is a safe and easy way to receive payments from employment, government assistance and tax filings. Unlike check-cashing services, banks will not charge you a fee for cashing a check or having it deposited directly into your account. For lower-income individuals, having a way to quickly and easily cash a paycheck for free adds up to significant savings over alternative cashing methods.
Entrepreneurs need funding for several phases of a business, especially for startup and growth stages. There are several methods to fund your company, including investors and government grant or loan programs, which are easier to find and secure with access to a company bank account. Business accounts can also help you establish a working relationship with a bank, making it easier to borrow funds from the institution in the future.
Expanding banking and financial services access to more individuals and businesses is one of the best ways to provide financial security. The security banks offer customers can provide peace of mind and greater access to funds. Having access to savings and checking accounts can benefit the individual by providing interest on saved funds and reducing the number of check-cashing fees he or she faces.