A bank is a much-required institution that not only offers credit to you, but also gives you a return on your savings. Since historical days, banks have existed in one or the other form. Let us see why we all need these banking institutions.
For wealth security and increment
It is not at all safe to put all your money at home or in your personal locker or treasure. Away from thefts and burglaries, a bank is a safer place to deposit your money and valuables. In fact, banks offer you a rate of interest for your savings and you receive additional earnings. This is one of the ways to increase your static wealth over a long term. Your deposited money is lent to other needy people who borrow money for a set interest to banks. You are paid out of this same money.
For convenience of lending and borrowing
Due to the social mobility provided by banks, people can build up on their existing wealth. Had there been no banks, you would not have known a place from where you could borrow money or a person to whom you could lend your money. Thus, banks mediate this process effectively. There would be higher poverty if banks did not play their role. It is because of these banks that we can take loans to purchase our desired items at any time.
For general convenience
You can access your money from any place in the worlds if it is deposited in a bank. All your bills can also be paid easily using your bank checks. With your checking account, you may quickly send money through mails. Additionally, you may conduct an online transfer of money, which is offered by many banks for free. Thus, banks are a vital means of keeping an economy mobile.
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