Why Keep Money in a Bank?

1. Safety: Money you deposit in a bank account is safe from loss, theft, or destruction. Even the best hiding places for money can be found by a thief or be susceptible to a flood or fire.

2. Insurance: Deposits covered by FDIC or NCUA insurance are protected by a fund backed by the full faith and credit of the U.S. government. So if your bank closes and can’t return your money, the FDIC or NCUA will pay the insured portion of your deposits.

3. Convenience: Money in a bank account can be accessed in a variety of ways. You can make deposits by visiting a local branch or setting up electronic direct deposit. Some institutions have remote deposit services where you deposit a paper check by taking a picture of it with a mobile device or scanner and uploading it online. You can use online bill pay to send funds in the form of a paper check or electronic transfer.

4. Low cost: Different banks offer accounts with a variety of benefits, such as interest paid, debit cards, online banking, account alerts, bill pay, and overdraft protection. Many bank services are free, which makes using a bank to get cash or pay bills less expensive than alternatives, such as a check cashing service. Some check cashers charge a fee that’s a percentage of the check value, plus an additional flat fee. For instance, cashing a $1,000 check at a check cashing service could cost 1.5%, or $15.

5. Business relationship: Building a relationship with a bank may give you the opportunity to qualify for premium banking services, loans, and credit cards that can improve your financial future.