Just like any other business, a financial service provider sells products to earn money so that it can run its operations and provide services. To understand how financial service providers operate, know that when you deposit money with them, it gets pooled into a shared fund along with everyone else's.
What are the benefits?
Keeping your money in cash puts it at greater risk for theft or loss. The government or private insurance companies likely protect the money you deposit with a provider. That means you’re able to keep your funds safe without having to worry about them being at risk.
Money in your account can be accessed from anywhere, whether it’s online, via a mobile phone or through an ATM. You can arrange for your employer to directly deposit your wages automatically into your account, so it’s easier and faster for you to get paid.
Reviewing your statement — a record of the balance in your account and the amounts that have been paid into it and withdrawn from it — makes it easier to manage your finances and stick to a budget. With statements, you’ll know exactly where your money is going, whether it is towards bills or a night out with friends.