1. Bank account facilitates a safe custody of money
The bank is the custodian of cash. As and when the account holders needs the money can withdraw the same depending upon the type of account.
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2. Bank account helps in making payments
The bank account holder can make payment to third parties through the savings and current account. The payment may be regarding electricity bills, insurance premium, etc. The bank also makes direct payment on the standing instructions of the customer.
3. Bank account helps in collection of money
The bank can directly collect money of the customer in respect of dividend, salary pension or from debtors. The collected money is then deposited in customer's bank account.
4. Bank account holders get advances and loans
The current account holder can obtain an overdraft facility from his bank. The recurring and fixed deposit account holders can get a loan upto 75% of the amount to their credit. The savings account holders can also obtain loans to purchase computers and such other equipments.
5. Bank account helps in smooth transactions
The bank account make it possible for the businessmen to conduct their business operations smoothly not only in the domestic trade but also in the foreign markets.
6. Bank account holders get a safe deposit locker
The bank provides safe deposit locker facility to its account holders to keep their valuables like gold jewellery, share certificates, property documents, etc.
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