As early as 5 years old, my parents opened a bank account in a rural bank in our town. During Christmas, when our godparents, uncle, and aunt will give us money as our “aguinaldo”, a part of the money we accumulate we will deposit it to our savings and the remaining, my siblings will potluck for our share in our food that we will serve during Media Noche, or New Year’s Eve.
I remember how excited I am that I’ve been able to have a bank account on my own. Writing in the deposit slip with my money I have saved from my allowance, and from my very generous godparents, it was a very fulfilling experience for me. At an early age, my parents taught us the importance of saving money.
Opening a Bank Account
Having a bank account is not only for people with a fortune to stash away. Even a child can have a bank account, but with the condition of having a guardian to manage it. Anyone can open one.
Nowadays opening a bank account gets simplified, you just need at least two (2) valid IDs and a picture, and you just have to fill-up the form to open an account.
Now that every transaction is online, you can also open your bank account in the comfort of your home. You just need to fill up a form online, upload an ID, take a selfie, and voila you can have your account open. You just need a week or more for the delivery of the card if you request it.
Why You Need to Open a Bank Account
If you do not have a bank account as of now, here are some of the reasons that you may consider opening one.
One is for safety. Keeping your money in your cabinet or under your mattress may keep you secured but once there is a fire or a robbery happens in your house, your money is not protected.
Another is for convenience. Now that most of our payment is cashless, having a bank account has some advantages in it. With just one click from your bank app, payment or bank transfer has been done. You don’t need to go out, all transactions happen in the comfort of your home.
Having a bank account can earn you a credit score. It helps you build your financial credibility. It means faster loan approval due to overall performance. And it can show on your transaction, how often you deposit, your withdrawal, and your current balance.
When you have a bank account, you can start to save and have an emergency fund. You can start to save for your son or daughter’s future in preparation for their college. You can have your long-term plan on saving for your dream car or house.
Lastly, you can also invest when you have a bank account. Most of the bank now offers an auto-debit so you can start your investing journey. Aside from earning your money from savings, there is a chance to earn higher income when you invest it.
Having a bank account helps you to manage your finances. A statement of account from the bank helps you track how and where you are spending your money. It helps you achieve your future goals just by saving and investing. The interest you earn from having a bank account is also a plus factor in considering opening one.