Why is it important to have a bank account?

Question

i just closed mine because i was $200 dollars over due and i wasn't aware of it. But should i open a new one or just cash my checks?

Answer 1

You get an overdraft - so free money!!!

Answer 2

Well, you could carry all your money around or keep it hiden somewhere. I wouldn't recommend that. Without a bank account you can't have direct deposit, pay bills online, use checks or check cards,etc......You can survive by only using cash but it's very inconvenient and unsafe these days. If budgeting, it would be ok to carry a budgeted amount of cash and stop spending when you run out. If you hate banks you could use your credit union. It's like a company bank, with many of the same conveniences, and they often have better deals. It's usually easier to get loans from your credit union as well.

I must ask why you didn't know that you were 200 overdrawn? No matter what process you use, if you don't balance your accounts you will run into the same problems.

Answer 3

You don't-but it is a good idea to have a financial account of some kind. Join a credit union if banks aren't for you but do something and then keep track of what you deposit versus what you spend!

People without bank accounts are discriminated against-try to rent a car and you pay $500 cash to secure it vs a $300 hold on your credit card

Want to buy a car-without any money in the bank and no credit history $2-3 gs down

want to rent an apartment-they may turn you down

Most important-make arrangements to pay the $200 because the bank will attempt to collect their money from you. No one else has said that-now if they try to garnish your wages and you tried to make a payment agreement tell the judge and they will catch hell. Offer to make monthly payments-ask for a fax number to send a written and signed agreement to. Don't tell the person on the phone the amount that you want-they will say it cant be done but keep proof of the fax being transmitted and keep a record of their name and number

Answer 4

Definelty open a new account when you get the oppertunity to do so! Having a bank account (more specifically a checking and savings account) helps you establish credit and shows companies you are responsible and future oriented regarding your finances. Now we all have problems with our banks but you have to find the right bank for you. One that caters to YOUR needs! I suggest that you use your transaction booklet that comes with your check book or when you first open your account too. Always save your receipts and pick a time every night or every few days to document the transactions you've made. Do this enough times to set up a routine! I hate relying on the bank to tell me how much money I have in my account! Sometimes you make a transaction but it doesn't post for days or even weeks and the bank may say you have more money available than you really do. You just got to stay on top of your finances! Good Luck!

Answer 5

It is important to have a bank account because if one day you want to purchase a car, a house or even try to request credit, one of the questions that companies ask is if you have a bank account meaning a checking/saving account and if so, how long have you had the accounts. So in my opinion. YES, it is very important to have a bank account. If you have trouble managing the account, because you are afraid you may overdraft and what not, leave the debit card at home or have someone you TRUST manage your account for you.

Answer 6

It is almost necessary to have an account, open a new one and just keep track of the balance. There are lots of banks with lower bank fees depending on the services. The fees might even be lower than taking checks to a check cashing place.

Answer 7

That depends upon if you can get your checks cashed easily and efficiently. Many banks, for example, refuse to cash checks for non-account holders.

Also, it may be difficult to pay bills without a checking account. I am guessing, and it is only a guess, that you are still living with parents, or you would have plenty of reasons to have a bank account: rent; utilities; car payments; credit card payments; stuff like that.

Answer 8

The banking system will penalize you if you don't have a bank account somewhere. They will cash your checks but will cost u a lot of your cash to do so. Also, it establishes your credibility.

Just make sure you don't have the overdraft protection which is basically a loan. But also watch to make sure you don't spend more than yu have.

Answer 9

Because that's where you save your money. You can also do some investment on it. Very convienient. Also, you can access your bank account online and do online bill payment. Trust me, you are gonna need a bank account. A great way to save up your money, and getting some interest in return.

Answer 10

i thought the same way, and didn't get one for a few months after i started my job. but having an account is good because you can put your money in it. when i didn't have the account i spent it all, then i started and now i don't waste as much. i spend more when the money is in my hand.

Answer 11

Even the ants save for a rainy day!