The advantages of maintaining a bank account are:
- It eliminates the need to keep large amounts of currency in hand.
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- The surplus money deposited into the bank earns interest.
- In case of dispute, cheques can serve as an evidence of payment.
- payment to creditors by cheque, particularly if delivered by post, is more convenient and secured than by cash and is also cost-saving.
- A business having account at the bank may easily avail loads and overdraft, safe custody of valuables, expert advice on business problems.
- A business having account at the bank avails other bank services on behalf of its customers, bank sells and purchases shares, debentures, government securities, collects cheques, bills of exchange, dividends, interest etc. This types of service is of great help to the business firms.