Question

Explain any four advantages of a bank account.

Answer 1

Banking Services nowadays have become essential for all types of people, whether individuals or businessmen. The main advantages of a bank account are:

1. It helps to develop the habit of savings among the people.
2. Payments through cheques are always easier, safer and cheaper.
3. The businessmen can get their bills of exchange discounted easily, if they have an account with the bank.
4. A customer can also avail overdraft facilities from the bank in times of financial crisis.
5. A customer can make payment of premium to the insurance company, if he has a bank account.
6. Most importantly, transactions through a bank account can be produced as an evidence in case of dispute.