Why Is a Bank Account Important in the US?

Why Is a Bank Account Important in the US? – If you are moving to the US, you must open a bank account. Nowadays, you can open US bank account online and enjoy several perks. Primarily, bank accounts are either savings accounts or checking accounts.

A checking account enables customers to access their money with high flexibility. A savings account is for earning interest on the account balance. While a checking account is beneficial for everyday use, most people have a savings account alongside it.

Are you someone who prefers storing cash physically? While you can store your money at home, there are some concrete reasons why a bank account in the US is important. Scroll down till the end to become aware of the reasons.

High Convenience

A major benefit of a bank account is the convenience that comes with it. When you own a bank account, you will be able to withdraw cash as per your needs from the ATM. You can also pay for products and services with cards linked to your bank account.

Enhanced Security

Storing physical cash at your home is unfortunately not a safe option. It increases the risk of theft and burglary. Moreover, your money might be destroyed in natural or man-made disasters like floods and fires.

Some people bury money underground for security reasons. However, it’s not an ideal option because moisture and air are likely to decompose it. If you want to keep your money safe, banks have no alternative.

Depositing money to your bank account ensures that it stays in secured vaults. You can make payments directly from your account without having to withdraw cash. You can also transfer money to friends and relatives from your bank account.

Earn Interest

The interest rate is another crucial reason to have a bank account. Every year the prices of goods and services increase, and the economic phenomenon is called inflation. You have to spend more money on purchasing goods and services.

The value of money falls down due to this reason. A savings account protects you from inflation by offering interest. The interest rate serves as a source of income and also encourages people to save more.

Pay Expenses

A bank account can be used to directly pay fixed monthly expenses. For instance, you can pay all your utility bills using a bank account. Some people set up bank accounts to make regular payments like insurance premiums.

Lenders can directly extract money from your bank accounts and remove the need for withdrawing cash. It saves the time and effort of account holders. Moreover, you also don’t have to bear the cost of sending a money order or mailing a cheque.

Access Credit

Having a bank account is great if you need to access credit. You might need a high credit score when you are applying for a loan. Lenders will favor customers who have a high credit score.

It shows that you are able to manage your finances well. Moreover, your existing relationship with a bank will increase the chances of loan approval.

Ending Note

Bank accounts are cheap and usually offer low-cost or free services to account holders. Bank transactions are transparent, and you can keep track of it through your passbook. Open a bank account in the US now and enjoy all the perks associated with it.

Zolve offers an operational U.S. bank account and a high-limit credit card that can be applied for while still in your home country. With advantages like no application fee, easy approvals, and a completely online setup, the future looks bright if you use Zolve.