ICSE Class 9 Answered
What are
the advantages of a bank account?
Asked by Topperlearning User | 05 Jun, 2015, 09:46: AM
Expert Answer
The advantages of a bank account are as follows:
- Interest income created: Small savers earn an interest on their savings, when they deposit money in the bank. Hence, depositing money in a bank generates income rather than holding idle money.
- Mobilisation of small savings: Bank accounts help in mobilising the small savings of a vast segment of people. Further, these amounts are transferred for productive investment.
- Safe transactions: Bank transactions such as issuing of cheques for purchase of goods are very easy to perform. These bank transactions remain as evidence in case a dispute arises between the borrower and the lender.
- Secured deposit and easy withdrawal: Bank accounts are a safe place to store money and to withdraw the amount required in time.
Answered by | 05 Jun, 2015, 11:46: AM