home loan finance blog
Have you ever had your parents tell you “Save your money” and “Invest your money?” Fact is, they are telling you something that is truthfully a good way to get a return on your money. On top of that, its safer then carrying cash in your pocket.
I wrote a blog not too long ago (earlier today) that explained the top 5 reasons on why saving with a bank was such a worthy investment. Here is the 5 reasons from that blog:
Reason 5: Free ATM Card and/or Checks
This is a reason many probably wont understand, but think about it though. Its always great to have access to your money whenever you want it or absolutely need it. Plus, carrying a debit card is safer then carrying cash around in your pockets.
Reason 4: No Responsibility Unauthorized Charges AND Overdraft Protection
When I say this statement, I am assuming the financial institution you are electing to get an account from offers this. Before getting one, ask them about their policy of unauthorized charges and their overdraft protection (if any.)
Reason 3: Help Keep Track Of Your Financial Records
With a checking or savings account, it is considered much easier to track your financial records. The banks usually provide a free monthly bank statement to show you what was deposited, what was withdrawn, etc. This can help you in maintaining your bills and financial records.
Reason 2: NCUA Insured
With your money in the bank, you also have the protection of the NCUA. The fact of this is that your money is insured by the NCUA for up to $100,000 in your bank account. So if the bank were to be robbed, youd be reimbursed for up to $100,000 of your account balance.
Reason 1: Earn a Return and Build Credit
Thats right, 2 things have number 1 locked down. The first is that with a Savings or Checking account, you can earn a return on your money. Some banks offer a low APY, while some offer a high APY. For instance, the online bank known as ING Direct offers a 4.00% APY for up to $50,000 and 5.25% for $50,000 and upwards to the next tier. Allow me to explain, assume you have $1,500 in the ING Direct savings account, that is an extra $60 a year (or approx. $5 extra a month.) Aside from getting a return, you can build you credit score as well. Its a well known fact that having your bank account in good standing and being opened for a while can build your credit score. Might as well start early meaning today.
So as you can see, savings can be a good thing when putting your money into a bank. If you would like, you can read the entire article on the blog here. I hope you enjoy it.