4 benefits of saving money in the bank

Do you save your money at home? Have you ever wondered if you should open a bank account or join a credit union? There are many advantages to saving money in an account.

Key takeaways:
From keeping track of your finances to having easy access to your funds, saving money in the bank offers many advantages.
You can save your money in a variety of accounts, such as traditional savings accounts, high-yield savings accounts, and certificates of deposit.

Keep Track of Your Finances

It can be hard to remember whether you paid a bill, how much you spent on groceries, or how much money you have left. Banks and credit unions keep track of all your deposits and expenses, so having a record of your finances can be as easy as checking the banking app on your phone.

Checking accounts often come with debit cards. When you use your debit card, your bank or credit union logs each transaction and shows where it was made.

Safety of Your Money

The money you save in U.S. banks is insured by the federal government—up to $250,000. Even if a bank is robbed or destroyed in a disaster, your money is protected and backed by the government.

Earn Interest

Whether you save with a local credit union or a national bank, some accounts will pay you a small percentage to keep your money with them. Compare interest rates to see where your savings can grow the most over time.

Easy Access

Many banks and credit unions offer ATM access across the country. So, no matter where you are or what time it is, you can access your savings when you need them.

Did you know?
During the loan application process, Oportun accepts bank statements as proof of income if you don’t receive paystubs from your employer.

What Type of Savings Account Should I Have?

Saving for your future is always a smart choice—and where you store that money matters. Keeping it at home might feel convenient, but it’s not protected from disasters like floods, fires, or theft. A bank or credit union offers more security and helps you build your family’s financial future.

Here are some common types of savings accounts:

• Checking account: Designed for frequent transactions like deposits, withdrawals, and bill payments. While it usually earns lower interest, it provides quick access to your money through debit cards, checks, and online banking.
• Traditional savings account: A basic savings option that earns modest interest. Great for short-term goals and emergency funds.
• High-yield savings account: Offers higher interest rates than traditional savings accounts. Often available through online banks.
• Money market account: Typically earns more interest and may allow limited check writing. These accounts often require a higher minimum balance.
• Certificate of deposit (CD): Locks your money for a set period—ranging from a few months to several years—and pays a fixed interest rate. Early withdrawals usually result in penalties.

Oportun: Affordable Lending Options Designed With You in Mind

Now that you know the benefits of saving money in the bank, find out how Oportun may help if you’re looking for affordable credit options. Visit our homepage to learn about:

• Personal loans
• Secured personal loans
• And more!