canstockphoto3162840What is the most effective, reliable and a secure means of managing your money? The answer to that million dollar question is by Opening a Bank Account. The bank is an effective means of cashing your check, managing your finances and  providing a variety of services that will help you build your savings. It is really amazing that many people think it is better to hide their money under the mattress than to put their money in the bank.

Here are 3 key reasons why you should open a bank account today.

 

Build Your Savings

You are required by most financial institutions to maintain a balance in your checking and savings account. This means that whenever you make deductions from your account, some banks will require you to save a minimum amount of money in order to continue using their services. This will lead to force saving on your part, which is a good thing.

Another benefit that’s provided by banks is the fact that you are free to continue adding money to your account as much as you would like. Your money will remain safer in the bank than hiding it under the mattress. For example, if your home is burglarized and the thief get his hands on your money, you will have to suffer the loss. You will be better off leaving it in the bank since most financial institutions are FDIC insured.

 

Build Interest on Your Savings

You are actually earning interest on your money while it’s sitting in your account. What are interest rates? These are payments that are made by the bank to your savings account for allowing your money to stay for a long period of time. Whenever you make a deposit, your bank uses a portion of it in its loan operations where it subsequently will earn interest on the loan. The income that’s receive will trickle down to your savings which is one of the ways that banks are able to make a profit.

The more money you save in your account through your deposits, you will end up receiving a higher return on your savings.

 

Build Your Nest Egg

Banks will allow you to open a high yield savings account. Certificate of Deposits (CDs) and other types of investments will require you to leave your money for a long period of time and the return on your investment will possibly be double the amount than what you would normally earn in a regular savings account.

You should take advantage of their services by speaking with a financial consultant about opening a retirement account. This will allow you to have enough money to live on when you retire from your job. Don’t put this off.

The sooner you build your nest egg, you will better prepared for emergencies and have a financially free lifestyle.

 

You have the option to open a bank account either in your local area or online. Make sure you do your homework by finding out which bank offers the highest interest rates. You also need to be aware of the amount you will need to pay for monthly fees, especially if you choose to open a  checking account. Also check out the amount that’s charged for overdraft fees in case you spend over the amount that you have available in your account.

 

Talk to an advisor at your bank about Opening a Bank Account. They offer a variety of services and your money will be in good hands. Start building your savings today and watch your money grow.

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