There is a difference between keeping loose coins in a can and keeping them in a bank. Here are the advantages of opening your own savings bank account:
Teaches the legit act of saving
Unlike the shoe box in your closet, banks have implementing rules and regulations. For example, there is a minimum maintaining balance and going below that amount calls for penalties. It will discipline you from withdrawing too much money too often.
Being an adult
Opening a bank account is like an application process, which requires valid IDs and other documents. When I opened a savings deposit account in a rural bank here in Davao city, I only had limited documents (school ID, NSO birth certificate). So I had to get a Barangay certification in lieu with a legal ID. To have that certification, I met with our purok leader for the first time in forever.
I learned about the processes of opening an account. Also, there is also a sense of empowerment each time you save money. It’s like a happy feeling that, hey I’m a legit adult na bes.
Perks and other benefits
Did you ever want to buy something online and you have to nag your mom about her debit card? Most savings deposit products offer debit cards that can be used in online merchants. You can also use this debit account to receive money for online jobs and e-commerce. Although the interest rates here in the Philippines is small and almost negligible, it is still worth mentioning.
You’re helping the economy
“Barya lang po sa umaga” -Every PUJ ever
Stashing coins and bills deprives other people from using them in the market. Depositing your money in banks not only keeps your money safe, it also allows other people to use the physical money when you don’t have the need to use it.
It may be a personal decision
I practically do both methods. I save loose coins, and when they fill up the can, I schedule a bank visit.
I will link the next blog, a step by step process in opening a bank account for college students. Which bank would you choose?