Having a bank account is a primary tool for managing personal finances in a safe and effective way. For those people who are employed it is likely that you will receive a paycheck. Owning a bank account often means having a safe place to store your money. A bank account also provides you with easy access to your money either with a check or debit card. Maintaining a check account has both advantages and disadvantages that must be overlooked prior to choosing a bank and its checking account options.
By having a bank account or bank accounts, you save fees charged by storefronts that provide check cashing services and the ability to access funds by writing checks instead of having to carry cash with you which is especially dangerous nowadays in South Africa.
By owning a bank account your chances of being able to obtain a loan are much higher. If you are in need of a personal loan, vehicle loan, student loan or home loan your chances are higher of being approved if you are already a customer of the bank. Furthermore having a account can improve your chances of obtaining finances elsewhere. Before any financing is granted the lender will question your ability to pay The more money you have in your bank account, the more likely it is that you will be approved for financing.
For tax purposes, checks provide a paper trail of written proof that you have paid someone or have been paid. Every time you write a check that ultimately clears your account there will be records of it.
Having your salary automatically deposited into your bank account allows you to obtain your money faster and it saves a lot of time and energy associated with depositing cheques yourself. The majority of banks offer check cards for use with ATMs, and for making purchases anywhere Visa or MasterCard are accepted by using checking account funds without writing a check.