Should I Get a Bank Account

Should I Get a Bank Account?

 

 

 

 

Banking is not a fun topic but it’s a growing governmental concern.  According to the Federal Deposit Insurance Corporation, the amount of households who are still unbanked in the U.S. is around 7%.  This may seem low; however, this translates to approximately 9 million households.  This in turn translates to lots of money for these households that is lost in fees to currency exchanges and other institutions that have higher fees than the traditional checking account.  There’s a lot of reasons people don’t have bank accounts.  Some choose not to do so because they don’t trust the big banks.  Others are just not educated on the benefits and haven’t been motivated enough to get a bank account.  Some can’t due to previous infractions with banking systems.  Let’s take a moment to break down some of these arguments.

“Banks aren’t Safe!”

The news certainly makes it hard to trust the banks.  Either it’s a CEO getting into trouble, or the banks themselves are in trouble.  However, the reality is that there is nowhere safer to put your money than a large bank.  Why?  Because your money is FDIC insured.  This means that any money put into deposit is automatically insured, free of charge!  Speaking of fees, some fear the incessant hidden fees that a bank may charge.  It’s a common fear to believe that your money isn’t safe from the bank itself.  Of course, being a savvy shopper combats this .  Most banks will waive fees as long as a minimum is met.  And because of the high rate of competition, it’s not a problem to get a banker to waive a few months in exchange for direct deposit or other convenient applications.

“I Just Never Thought About it and it’s Probably too hard to start one.”

If you never opened a bank account because you thought it was too hard, then have no fear. Thanks to the internet, it’s as easy as ordering a pizza.  Except rather than collecting calories, this “pizza” collects you interest!  On-line banking is convenient and often a good option for people who just don’t want to make the trip to the bank.  It’s also a very good option for those that have been denied by the traditional banking agencies.  Sure, there may be fees involved with on-line banking; however, consider the options.  Cashing a check using currency exchange charge 1% for any checks over $50.  Take for example, you make $500 weekly.  That means you are paying $5 weekly in fees just to get your money.  That means you’re give up ½ a check a year in fees!  Think of where that money could have gone to!  With free and easy direct deposit options available, you can’t afford NOT to have a bank account. 

“I Want a Bank Account but Banks won’t let me in.”

Mistakes happen.  A bounced check or an overdrawn and abandoned account may make it difficult to retain a bank account later in the future.  The best thing to do is to address these issue when they arise but if that is no longer possible, what can you do?  As mentioned above, on-line accounts are an option but also look to your network of friend and family.  Is there anyone who has inroads with a credit union.  Because credit unions work more on personal relationships, it may be willing to give a vouched applicant a second chance.  Consider joint accounts and pre-paid cards as another inroads to getting back to banking. 

Call the Shimotake Law Firm today at (312) 934-5886 to talk about your Financial Strategy Today!

With the right tools and the right strategy, banking can be manageable and dare we say…FUN? Bank accounts shouldn’t be a burden, they are here to make your life easier.  By using a bank account to auto-pay bills and help manage your money, you can have the foundation for financial security.  To talk about this and other tips, call The Shimotake Law Firm at (312) 934-5886 for your free financial evaluation.