Do I Really Need A Bank Account?

If you are like most millennials then you're probably fed up with overdraft charges, atm fees and inconvenient hours. Sometimes keeping money in a bank seems like it's way more trouble than it's worth. Nevertheless, most people assume that the bank account is essential; but why? It's likely the only thing preventing you from taking your money out is the fear of looking like you're paranoid or not knowing what to do with it. Well there are some good reasons to hold your money in a bank but there are also some places that you can put your money that will keep it relatively safe and and you more income than the paltry savings account.

The main reason people put money into banks is because it is protected there by the FDIC. The federal deposit insurance corporation insures your money up to $100,000 making it so that if something does happen to your bank your fans are relatively safe to a certain extent. Unlike holding money in your home where it say a fire or flood having should may lose all of your holdings to the disaster. It's one of the original reasons banks were created but it is not how banks make their money.

Having a bank account also allows you to earn interest on the money that you have put into a savings account. Unfortunately this interest is so small that the returning it is negligible and you could say it is a scam. I say this because the banks are paying u this interest based on the fact that they are using your money to finance risky loans to other members of the bank who they deem suitable to lend to. This is one of the primary ways that banks create revenue and why they are able to pay you interest on your deposits.

Most of the time if you have a bank account you will have access to online banking which means that keeping track of your finances is made little bit easier especially when it comes to txt time. Bank accounts also really help when it comes to getting paid because you can set up direct deposit and I have to worry about waiting for our cash and checks. Another convenience that is offered through having a bank is the debit or check card that you are giving in order to spend your money at retailers or online.

The best part about having a bank account may be that it allows you to have access to other investments that require bank account as part of their sign up. I am referring to being able to use services like Robinhood and Stash which without a bank account you will not be able to add or withdraw any funds you’ve earned. As cryptocurrency begins to grow in popularity you may find yourself using these more and more instead of your bank. But for now, having a bank account is a prudent decision especially if you are trying to build wealth and hold it safely.

PS: If youre lookin for a convenient bank check out simple, they are an awesome millenial friendly bank.