Advantages of having a bank account are :
(1) Safety of money: There is always a risk in keeping cash at home. It may be lost or stolen. The savings deposited in a bank account remain safe and and free from risk.
(2) Payment facility : Payments can be made easily and safely by means of cheques. There is no need to keep large amount of cash at home. Counting of notes is not necessary. Moreover, the cheques serve as evidence of payments in case of disputes. Therefore, making payments through cheques is always convenient and safe.
(3) Collection facility : The bank collects cheques, drafts, bills of exchange, etc., deposited by the account holder.
Businessmen having bank accounts can get their bills of exchange discounted easily.
(4) Habit of savings : Bank accounts promote the habit of thrift and saving in the public. People are prompted to save and deposit money in bank accounts due to benefits of safety and earning interest.
(5) Loans and Advances: Account holders can obtain loans, overdrafts and cash credits from banks.