What are the usefulness of banks?

[Jamoflondon]

As we all know what banks are basically created for but it still does not mean that they can be used for other means as well. I can say that here are some of the advantages of having a bank account.

1. To save money
2. To save properties or documents
3. To get loans

1. To save money: This is common to the extent that if you ask a kid what banks are made for, the kid will surely tell you that it is meant for saving money. So any educated or exposed person will surely know about this even if you are from the rural area.

2. To save properties or documents: This is something called deposit box and I think that almost every bank has it. If you want to save your properties like expensive jewelries, gold, and also important documents even flash drive that you think that it contains very vital informations can also be kept there.

3. To get loans: Incase you do not know before, you should know this now that banks do give people loans, but the type you will be offered are usually secured loan which means that you will have a collateral, this always something that will be worth the amount of loan you borrowed in financial value.

 

[btaliat]

Banking has many opportunities for the customers, to the banking sector and even to the country itself. For the individual, it prevents frugality as the users will be saving excess instead of lavish spending. Aside this, it will protect their property from being stolen or even being misplaced. They can seek financial advice from the banks. They can be shareholders as well. For the banking sector, it provides employment for the workers which in turn making them more responsible. And it correctes country deficit in terms of inflation.

 

[Kingsley]

We can not over emphasize the importance of the banking system in any country. besides the primary purpose of safe keeping of money and other valuables it also plays other crucial roles in any economy of the world that it is found, because they regulate all the business activities that takes place in a country, they also serve the purpose of ensuring that inflation and other economic factors are been put to proper check and control to ensure economic stability in a country. they ensure smooth business transactions as they are also found in the auxiliary to trade with include warehousing, advertising, communication and the likes.

 

[Mataracy]

It is very important to save in the bank so that one will have rest of mind that the document and the money is save. It is a place where one can save valuable things.
Insecurity in the country or nation warrant it for the people not to be saving at home because at any time the thief can enter some ones housing and steal their belongings.
People can not be going about with cash because one can be rub by rubbers . so it will be very advisable to save in the bank in order to save one from all these.

 

[Skysaint]

Banks are indeed very useful although I have in so many posts advice against keeping money in banks, but that was because I believe it could be prone to devaluation with time. So I did advice on making investments with your money rather than saving it in your bank without any valid reason.
But it is certain that the different types of banks are very useful to keep our money safe, keep our assets and probably take loans for different reasons. Considering the rate of insecurity in the country and carelessness on the part of an individual, it would be rather foolish to keep ones money at home or anywhere else offline apart from the bank.

 

[Sherman198]

Banks are useful to the society in all means.... Without banks, the society might be experiencing lots of troubles and calamities from the society it's self.

Imagine, you set up a business that yields and brings wonderful passive returns for you, and you keep storing the money you gain from your business at home. In that situation, that money might stolen, or a fire disaster might happen that will burnt all your money. I concur, banks save the society from experiencing these kinds of disasters from happening to us.

However, we can not say that our money is fully safe with the bank, because banks get robbed too, sometimes. Though, it's really unusual for a standard Bank to get robbed. And again, banks too may experience fire disaster, which is really unusual as well but all these can happen to any bank, which shows that our money or property are not totally safe with banks but it's better safe in the bank than our homes. Banks have securities but how many of us have standard securities at home.lol! Banks are indeed a blessing, even though they charge unreasonably some times!

 

[Fashow]

The important of a good banking system in a country can't over emphasis. Just that some countries banking system have been corrupted. Many banks in Africa charge many hidden charges on customers money. Gone are the days that the customers received interest on their money with banks in those countries. Therefore, citizens of such countries are not being encourage to deal with their local banks.

 

[Sotherefore]

The main function of the bank to me is just to save my money that I am interested to use immediately , and not to save my money there for long-term purposes because I just consider it as a waste of time .

Bank generally has been in existence for a very long time and people are making use of it as their saving company...well that is just the best way to save your money since it is backed up by the government , there is no possibilities of bankers running away with people's money

As technology goes by a lot of investment erupted both in the online space and offline space and people who making use of the online investment has reduce the concentration of investors in the banks,

Now people are no more interested to save their money in the bank since some people have a better investment that can be able to generate them a good return profit on investment compared to what banks can offer.

Most of my investment goes into cryptocurrency because it is mainly for long-term purposes and it is more profitable to save money in that way than to let it be in the bank that won't give you any return on investment.

 

[eldavis]

Banks was mainly created to save money, it's primary function is to help it's customers save money, it has also become a place where one can save documents and as well get loans from as you have said, it is also a place one can send money from one place to another with ease, even to other countries.

 

[Mellorando]

Banks especially commercial banks play an important role in the financial system and the economy. ... They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities. These financial services help to make the overall economy more efficient. A bank is a financial institution which is involved in borrowing and lending money. Banks take customer deposits in return for paying customers an annual interest payment. The bank then uses the majority of these deposits to lend to other customers for a variety of loans. The difference between the two interest rates is effectively the profit margin for banks. Banks play an important role in the economy for offering a service for people wishing to save. Banks also play an important role in offering finance to businesses who wish to invest and expand. These loans and business investment are important for enabling economic growth.

Main purpose of banks:

1 Keep money safe for customers
2 Offer customers interest on deposits,
helping to protect against money losing
value against inflation.
3 Lending money to firms, customers and
homebuyers.
4 Offering financial advice and related
financial services, such as insurance

 

[Caramelle]

Banks' common functions include accumulating the savings of individuals and businesses and investing them in financial instruments such as highly liquid short-term securities and loans. Nowadays, banks have expanded their roles and operations to include underwriting, insurance, and investments. Technology also enabled them to offer domestic and international money transfers. Thus, we can now use banks to transfer money from one country to another. Lately, in addition to traditional products, banks have been promoting cash cards or prepaid VISA cards that can be used to purchase goods or services online like a credit card.

While most banks offer home loans, some banks specialize in providing non-collateral business credit lines to fund the working capital needs of businesses. These are loan facilities that allow companies to borrow up to their authorized credit limit.​