Why are Bank Accounts So Important??
They are Safe!
Why should you hand over your hard-earned money to a bank? Because your money is protected there! Without a bank account, you could lose your money during an emergency, like a bad storm or fire. Also, without a safe place to keep your money, you may become a victim of robbery or theft. Money deposited in a bank is protected by the full faith and credit of the United States Government. The Federal Deposit Insurance Corporation (FDIC) insures your money up to $100,000. FDIC makes sure that even if your bank's CEO goes crazy and loses all the bank's money, the government will step in and give you your money back up to $100,000. Savings accounts and some checking accounts offer another perk -- you can earn interest on the money you deposit. Your mattress or top secret hiding place can't make such promises.
It Saves You Money!
Using check-cashers may seem more convenient than having a checking account, but those services cost you a lot more money in the end. Check-cashing stores can charge you up to five percent or more of the check amount simply to cash the check. A recent study by the Massachusetts Division of Banks showed that, on average, people will pay four to forty times more in fees to check cashers in order to cash payroll checks and write money orders than they would pay using a basic bank checking account. If you make less than $40,000, this can add up to more than $1,000 a year!
With a checking account, you can deposit your checks and access your money for little or no cost. You can save money by paying bills with checks, on the Internet or by direct debit, and avoid paying for money orders. Bank accounts also make getting paid simpler. You can arrange for your employer to direct deposit your paycheck automatically into your bank account. You can use your debit card to make purchases at stores or to withdraw money from ATMs, reducing the need to carry cash. You can also keep track of your spending on the Internet, by phone or at the ATM. And if you are extremely paranoid, you can check your account online every hour if you want to!
It Helps You Plan for the Future!
Some people find managing finances easier with a bank account. Looking at your bank statement makes creating a budget easier. Without a bank account, it is much more difficult to save your money to reach long-term goals, such as buying a home, starting a business or investing. Studies show that people with bank accounts are more likely to save and move up the economic ladder to financial security.
PNC Bank is committed to working with CHAMPS students in establishing secure and dependable bank accounts.
Contact the Campus Coaches to help you set up a secure account!