In this post we are going to discuss about Advantages of opening an account with the bank_
📌Advantages of opening an account with the bank_
📌 Importance of current and savings account.
📌 Benefits of having a current account
📌 Benefits of having a savings account
📌 State the benefits of having a current and savings account
📌 Advantages and disadvantages of current account
📌 Advantages and disadvantages of savings account.
Lets Begin…….. 📝📝📝📝📝📝
Following are the advantages of opening an account with bank _
1. Safety of money : The money with the bank is kept in a safe and secure custody. Keeping cash one’s own self always comes with a risk. It may be lost or stolen.
2. Cultivate habit of savings: Savings habits are cultivated in the public by banks. On the one hand, bank savings are safe, and on the other, they earn interest for their depositors, who are encouraged to save and deposit money in their bank accounts.
3. Avail loans facilities : Customers can obtain loans and overdrafts facilities from banks. Customers receive financial assistance as a result of this.
4. Collection of Cheques: The bank collects the amount of Cheques, drafts, bills of exchange etc. deposited in the bank on behalf of the consumers.
5. Facility in making payments: Making a payment using a bank account is always simple. Cheques make it a lot easier to make payments. In the event of a disputes, the cheques serve as proof of payment.
6. Safe custody of valuables Articles: valuables articles, deeds, securities, and other valuables can also be deposited in the bank for safekeeping. Banks provide safe vaults for storing these assets.
7. Providing credit information: Banks provide information on the customer’s credit worthiness. Letters of credit, which are particularly valuable in international trade, are also issued by banks for their customers.
List of advantages of opening an account with bank :
- The following are some of the benefits of creating a bank account:
- Having a bank account allows you to keep your money safe.
- Having a bank account makes it easier to make payments.
- Having a bank account aids in money collection.
- Advances and loans are available to bank account holders.
- Having a bank account facilitates financial transactions.
Current account importance :-
Current account: Open account is another name for current account. In this account, money can be deposited and withdrawn from a current account at any time during business hours without notifying the bank.Businessmen prefer to keep their money with the bank instead of keeping it in their cash box where it can be lost or stolen, as they can deposit or withdraw money from an existing account whenever they want.Current account holders can get an overdraft facility from the bank. The purpose of a current account is to offer businessmen with deposit and withdrawal facilities, relieving them of the responsibility of handling cash and the danger that comes with it.The customer has complete control over this account. Customers can withdraw funds from their accounts by cheque at any time during the bank’s business hours on any working day. There are no limitations on the amount of withdrawals that can be made. Banks usually do not pay interest on current deposit accounts.
Benefits of having a current account.
- Ensures that business transactions are completed quickly.
- Withdrawals are not restricted.
- Deposits in the home branch are not restricted.
- Allows companies to make direct payments via checks, demand drafts, or pay orders.
- Overdraft facility is available.
- Banking services are offered via the internet and on mobile devices.
Saving account importance:
Saving Deposit Account: This account is intended for those in the middle and lower income groups. This sort of account allows the customer to deposit his small savings. Any person with a certain minimum deposit can open a savings bank deposit account. The key feature of this account is that deposits can be made as many times as you like in a week.
However, withdrawals are limited to once or twice every week. To prevent the tendency of making frequent withdrawals, banks set several limits on withdrawals. Most banks allow 50 withdrawals in a six-month period. When compared to fixed deposit accounts, the rate of interest paid on saving deposits account is quite low.Interest is paid on the minimum balance to the credit of an account from the tenth to the last day of each month. Savings bank account holders receive a passbook. When a depositor wants to withdraw money, he usually has to present his passbook together with a withdrawal request.Banks are now allowing saving bank customers who maintain a minimum balance in their accounts to use the cheque function. The holder of a savings account is expected to keep a minimum amount in the account at all times. The bank will deduct a nominal amount if the balance falls below the minimum balance amount.
Advantages of having a savings account:
- It is possible to earn interest.
- You can increase your savings without having to pay monthly fees.
- You have quick access to your money.
- You can automate your savings by setting up automatic deposits.