ICSE Class 9 Answered

The advantages of a bank account are as follows:

1. 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.
2. 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.
3. 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.
4. Secured deposit and easy withdrawal: Bank accounts are a safe place to store money and to withdraw the amount required in time.