Open a Bank Account

One of the biggest surprises around is how many people don't have bank accounts. I'm not sure exactly why people don't use banks. Perhaps some people don't trust them. Other people perhaps owe the government money, and fear that the money will be taken from their bank accounts.

However, the penalties for NOT having a bank account are huge. Going to one of those check-cashing stores to cash checks gets expensive with fees that they charge. Then, paying to get money orders everytime you need to send off a check gets expensive as well. I have seen estimates that people without bank accounts end up spending $500+ per year in check-cashing and money order fees.

Opening a checking account offers many advantages. Some of those include:

1) Reduced fees

2) Security. Cashing a check and carrying around a lot of cash is risky. You can deposit your paycheck, and just draw out the amount of cash that you need.

3) Convenience. You can arrange to have direct deposit of paychecks. If you miss work on a payday due to sickness, your paycheck makes it into your bank account anyway. The ability to write checks when it is convenient for you, rather than having to make it to the store to get a money order is a huge help. Also, most banks will give you a debit card which you can use to make purchases, etc.


Coming soon ... How to pick a bank.