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.
