You may be fed up with overdraft charges, ATM fees and inconvenient bank hours. Sometimes keeping money in the bank seems like more trouble than it’s worth. Nevertheless, most people assume bank accounts are essential. Let’s see if having a bank account is all it’s cracked up to be.

Some people may be saying, why should you hand over your hard-earned money to a bank? Your money is protected by the Nigeria Deposit insurance corporation. NDIC is an independent agency of the Federal Government of Nigeria.

The objective of the deposit insurance system is to protect depositors and guarantee prompt and efficient settlement of insured funds in the event of failure of insured participating institutions. Where each depositor is insured up to N500,000 for deposit money banks and N200,000 for Microfinance banks/primary mortgage banks.

Savings accounts and some checking accounts offer additional benefits, you can earn interest on the money you deposit while your mattress can’t make such promises.

Some people find managing finances easier with a bank account. Looking at your bank statement makes creating a budget easier. Bank accounts also make getting paid simpler. You can arrange for your employer to direct deposit your paycheque automatically into your bank account though some employer do open a new bank account for their newly appointed employee.

As technology advances, the advantages of having a bank account grow. Banks do issue a small book called cheque containing pre-printed paper instruments issued to checking account holders and used to pay for goods or services. A cheque-book contains sequentially numbered cheques that account holders can use as a bill of exchange. The cheques are usually pre-printed with the account holder’s name, address and other identifying information.

In addition, each cheque will also include the bank’s routing number, the account number and the cheque number. Banks also offer online banking service, which allowed you to handle most of your banking needs in the comfort of your home or office; such as Account balance inquiry, Details of transactions, Transfer of money between accounts, Full statements of account, Access credit facilities and profitability indices, Payment of bills and you can also make request for bank rates, right on your personal computer or phone.

If you put money in the bank you don’t have to worry about your money being lost or stolen. Be sure to select a bank that is federally insured, this way if the bank goes out of business, you can still get your money. It’s easy to keep track of how much money you have. You will receive statements showing how much money you deposited and withdrew.

The general distrust of banks which discourage many families to wash their hands of banks and keep their cash. It’s not always easy, so living without a bank account is quite dangerous. To bank or not to bank? This doesn’t have to be the question.

It isn’t an all-or-nothing situation. You can choose to keep just some of your funds in a bank account. Meanwhile, you can either stuff the rest under your mattress or do what many financial advisors recommend, invest in things like bonds or stocks.

TIAMIYU ADIO ISMAIL

BusinessDay

Too much money = bank.

Maintain money =wardrobe.