Among the reasons why you should have a bank account, access to banking services must top the list. Unless you are a hermit living alone atop a hill, the need to receive payments for services and pay others for products involves banking. Those who lack banking access seriously limit their ability to interact financially with the modern world.
Receiving Funds…
Few employers pay their employees with cash. Not only do most employers pay by check, electronic transfer of money by direct deposit is now the preferred method for many government agencies such as Social Security. In order for funds to be received by direct deposit, a bank account is necessary. The day will likely come when paper checks will no longer be an option for some types of funds, so a banking relationship may become mandatory.
Check Cashing…
When checks are issued, they must be banked somewhere to effect the transfer of funds. Banks are reluctant to cash checks for non-customers, and may charge fees for the service. These fees commonly run up to 5% of the face value of the check. Using someone else to cash a check as a third party may not be an option. Many banks discourage this practice. Also, it is a hassle for anyone to go through the multiple endorsement procedures without charging for the time and documentation.
Record Keeping…
Having a bank account provides a reviewable trail of financial activities for banking customers. Most individuals do not keep good records, but banks must. Payment of bills through one’s bank account and record of payments received are easily reviewed on your bank statement. It is a good idea to have everything at hand within a bank account should finances need to be checked for any reason.
Time Saving…
The amount of time saved by using a bank for paying common bills is hard to calculate, but would be significant for anyone. Hand-carrying cash for the payment of bills due is not an option for some bills. Having to purchase money orders instead would require a lot of time and inconvenience.
Credibility…
Those who lend money, offer employment, and interact with us on a regular basis may be leery of anyone who does not have a banking relationship. It is an oddity for someone to be isolated from the banking world in this day and time. A history of responsible banking with any banking institution is positive testimony of your being a responsible citizen. Those who lack this type of business reference may be limiting their possible financial good standing.
Since free checking accounts are available at most banks, the reluctance to pay for the service is not a justifiable reason to not have a checking account. It does require the use of your Social Security number which should not be a problem unless you are attempting to remain anonymous. That is the final reason that some view those without banking affiliations with a questioning eye. It does give cause for suspicions, and serves as one final good reason to have a banking account. Assuming, of course, that you are not hiding from creditors or something else.