2007-09-14 17:55:58 · 6 answers · asked by sherya 1 in Business & Finance ➔ Personal Finance
They help to put your money in a relatively save place. Instead of keeping it in your pillow you can save your extra money in a bank and perhaps get enough interest to cover inflation. They let you write checks, so that when you want a new bmw you dont have to count and take $40000 to the dealer instead you can give then one peice of paper demanding your back pay the dealer the money.
They also provide credit in case you didnt have the 40k in your account for your bmw. The money you deposited along with the money other people deposit is provided back to you for a fee.
The fee they pay you to put your money is always less than the fee they charge to lend you money, that's how they make money.
2007-09-14 18:04:45 · answer #1 · answered by answer-answer-answer 3 · 0⤊ 0⤋
Without banks, and checking and saving account there wouldn't be any money for loans. So if there was no money for loans where would the common person go to get a mortgage (most people don't have $250k under their pillows). Also, where would we be without checks, atm cards, debit cards, online banking ect. People complain about the returns on their checking and savings account...but it is just like in the stock market, if you want a large return on your money then you need to take risk. Having a savings account at a bank is not risky, therefor there isn't a lot of return on your money. People complain about NSF fees but with ATM/Debit Cards, online banking, telephone banking ect banks need to make some money to pay for these things. And with all the things listed above people really shouldn't need to be bouncing checks because they should be able to keep good accounting of their spending. I know that I can go on my online banking and see transactions that I made less than an hour ago, so I know that I need to put money in my account if I don't want to overdraw my account.
Banks help the common person more than the common person knows. If you have a relationship with your local bank for years and you suddenly need a loan they are more likely to give it to you than a bank that doesn't know you from Adam.
2007-09-15 01:19:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Do you need to buy a car? A house? Credit cards? Get dental work done? Harley? How about a boat or jet skis? Start a business maybe?
Go to the bank, they will be happy to be of service.
2007-09-15 01:14:43 · answer #3 · answered by livigninchrist! 2 · 0⤊ 0⤋
If you are hiding your money under your pillow then what will you do if your house catches on fire? Banks are federally insured usually $100,000 per account to safeguard and protect your funds.
2007-09-15 06:06:41 · answer #4 · answered by vegas_vixen24 2 · 0⤊ 0⤋
They keep the river from overflowing.
2007-09-15 01:01:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
glad to help you if you are employed and have no debts. but if you have poor credits don't see me at all.
2007-09-15 01:03:46 · answer #6 · answered by Goodhead 3 · 0⤊ 0⤋