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Banking 101

Why Banking is important

BANKING 101

Why should I open a bank account?

People who regularly use check cashing companies instead of a banks or credit unions can spend approximately $800 a year just to cash checks and pay bills. By comparison, most banks offer accounts that are free of monthly service charges and include a free bill pay option if you agree to have direct deposit. If you do have to pay a fee it is usually minimal and you have the peace of mind of knowing your money is safe and insured.

Most people do not know that without a bank account, you and your family are particularly vulnerable in times of crisis and you may be unable to access your money during an emergency, like an earthquake or a fire. Without a bank account, you have no safe place to keep your money and if it is at home and you cannot get to it you will be at the mercy of others.

Funds deposited in a financial institution are protected by the full faith and credit of the U.S. government. And no matter where you are, access to your account can be as close as the nearest ATM so it is convenient

So are you convinced now that you should open an account? Here is what you will need: In order to open an account, you must provide some information to the bank. They do not open bank accounts without certain details about you. This is to protect them against risk and comply with a variety of regulations. You’ll need to provide simple details like your name and birthday, as well as identification numbers (in the U.S. this is most likely your Social Security Number). You may also need to provide a government ID or Driver’s License number.

If you’re doing this on-line, you’ll just type the information into a text box. If you are opening an account on-line, you’ll probably have to print, sign, and mail a document to the bank before the account is opened. Some banks may use electronic disclosure and consent that is legally binding, but many still won’t open bank accounts unless you complete this step. Until they receive the documents, your account is not active

You’ll have to agree to abide by certain rules and accept responsibility for certain actions. When you open bank accounts, you form a relationship based on your money. Therefore you should know what you’re getting into. If you open bank accounts on-line, you complete this step by clicking an “I Agree” (or similar) button, and performing the next step. After a few days or a couple of weeks the bank will process your paperwork. Then, they will mail you anything you need for the account such as checkbooks and debit cards.

What exactly is an Internet bank account? For our purposes, it means an account that's only offered on-line. While you may be able to bank with the same institution the old-fashioned way (in person), Internet bank accounts are usually only offered to on-line users.

Aside from the ability to bank in your bathrobe, what are the major advantages of Internet bank accounts? The answer is simple: Annual Percentage Yield (APY). By conducting your transactions on-line, you save the bank money which it ideally passes on to you in the form of higher savings. Opening bank accounts is really quite easy as long as you know what to expect. Just be ready to complete the required steps. While Internet bank accounts can help you earn more interest, you have to make sure you get the right one.

Compare the most common features of Internet bank accounts and decide which ones are most useful to you. Compare Internet banking with in person banking and decide which one is better for you. Now go ahead, visit a few banks near your home and gather information on what they have to offer you for your money. Surf the Internet for on line banking and see what they is all about and invest 25-100 of your hard earned dollars in opening a secure bank account. Good luck and happy banking.

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