Personal banking refers to the services offered by a financial institution to individuals to meet their primary financial needs. This may include a personal checking account, a savings account, or services such as personal loans or credit cards.
There are many benefits to having a personal banking account with a local financial institution. Some of these advantages include:
- Convenience. Paying your bills online is faster and cheaper than buying a money order. With a debit card or ATM card, you can withdraw money or make purchases anywhere credit cards are accepted.
- Safety. In a bank account, your money is no longer at risk from things like theft or fires. Plus, you can insure up to $100,000, so that if your bank closes, you still have access to your money.
- Easy savings. Your savings can earn even more money for you just by sitting in a bank account. Most banks offer an interest rate on savings accounts, which means your money will grow over time.
- Lower feeds. One great benefit of opening an account at a bank is the reduced fees and free services offered to members. These may include bill paying services, check cashing services, and cash withdrawals.
- Access to credit. Looking to buy a car, a home, or even take out a personal loan? Banks tend to favor their members, which means having a bank account will give you more access to loans at rates that are better than small loan lenders.
Because every individual has different banking and financial needs, they may require different services from a personal banking account. However, in general, personal banking gives individuals more control over their money, more organized spending and saving, and a safeguard against any unexpected costs. In addition, personal banking services allow individuals to make their money work for them and earn even more through features such as savings accounts with interest, rewards checking accounts, and money market accounts.
Before choosing a financial institution through which to open a personal account or utilize personal banking services, it is important to thoroughly research your options to ensure your needs will be met.