Keeping Your Money In A Financial Institute

While most people use a bank, thrift or credit union to manage their money, some people use check cashing businesses instead. But there are more advantages to using a financial institution.

For one, financial institutions are less expensive to use. A checking account allows you to write checks rather than pay for money orders. Some financial institutions offer special low-fee checking accounts or no-fee checking accounts with a minimum balance.

Also, financial institutions provide a safe place to keep your money. Your money is protected from theft, loss and fires that can occur in your home. Plus you'll be safer. When you leave the doors of a check cashing company, you're carrying around a large amount of cash. When you leave a bank or credit union, you take only the amount of cash you need at that time, leaving the rest safely housed in your bank account.

When you use a financial institution, you also build savings. By not paying for the high fees that check cashing companies charge, you save money that you can deposit into an account and build over time. That savings earns interest so you make more money as you save.

More Reasons to Use a Financial Institution

Security: Most financial institutions are insured by the federal government. That means that if for some reason the financial institution closed, the insuring organization would return your money.

Convenience: You can get your money quickly and easily. You usually do not need to go to the financial institution's building to get to your money or to make a deposit. Instead, automated teller machines (ATMs) are available 24 hours a day, 7 days a week, in convenient locations, including grocery stores, shopping malls, movie theatres and in kiosks on neighborhood streets.

Financial Future: When you have a bank account and write checks, you can show that you pay your bills as required and on time. You can also use your account to save money and earn interest on the money you save. It may then be easier to get a mortgage or other type of loan, such as a car or student loan, because you can demonstrate to a lender that you've used your account responsibly. And, if you opt for features like overdraft protection on your account — a feature that automatically advances funds into your account to cover items that would cause a check to bounce — you'll receive a positive trade line for your credit report. Positive trade lines help you build good credit.

 

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