Why Do You Need Banks?

Banks, they are honestly the best places that were created by man. They help you store money if you have too much of it and are willing to lend you some money in case you have less of it. Of course at a charge but the only thing free in this world is air and I bet you they will find a way to charge money for that as well.

First of all before knowing about why you need banks, it is important that you understand what a bank is.

Banks are financial institutions that have been licensed by the government to store money for and give loans to people. They are mainly regulated by either the government or the central bank. There are two types of banks available; commercial banks and investment banks. Normal everyday people would mostly work with commercial banks; who would handle their accounts and give out personal loans and such.

So now that you know what a bank is, it is time you know why you need them.

First of all they store your money. This is honestly one of the biggest reasons why we all need banks. The money we earn ahs to be stored somewhere and your house is probably not the safest place for this money. When you keep a lot of money at home, you are practically only a hop, a jump and a skip away from laying out a red carpet and flowers straight to your money, for robbers to come and gleefully take all of it away. The worst thing about storing money at home is that you might not only lose the money, sometimes you could lose your life and the lives of the ones you love and cherish. So simply put, it is a bad idea.

So where can you store all of the money away? Well the answer to that is a four letter word we call ‘bank’. In banks they would have accounts for people who register with them and into this account you can deposit the money you earned. You are free to use it whenever you please and all the money will be protected and kept safe.

Another reason why you would need banks is that they give loans. Banks lend money to people they believe have proper reason to require it. The money will have to be paid back on a fixed plan as per the agreement and if you miss a payment, you will have to pay interest. However this should not be a problem if you make it a point to pay on time. Many banks even offer services such as payday loans in Singapore. These are given to people when they are unable to cover daily expenses or are in need of money for an emergency. The loan is given for a fixed period of time, mostly about thirty days and upon receiving your salary you will have to pay it back. Either way in case you have an emergency you would not have to worry about getting money.

It can be seen from the above that banks are necessary. They help people in so many ways. So if you want to start using their services go and talk to them and they will help you.