Having a bank account is always worthwhile. The question for low-income individuals is whether it is worth the financial risk. Many people who live on low and/or fixed incomes find that it is.

Having a personal bank account (which usually consists of a checking account and associated savings account)is the way people do business today. Many banks offer free checking accounts with no minimum-balance requirement. Some of these free accounts are aimed at people who will do their banking through electronic means only (which include the bank's ATM). Free checking is often offered to students, and many banks offer free checking to individuals over 55 years of age. With most bank accounts also comes the convenience of the ATM/debit card, which can be used to make purchases, including online purchases. (Many low-income people do have computers. Those who don't may use one at the local library. Whether someone wants to find bargain prices online or earn a few extra dollars online, a bank account is required in order to set up an account like a PayPal account, which allows money to be transferred online without giving personal bank account information.)

Being able to set up direct deposit can be extremely convenient. Today, many companies, such as car insurance companies and cell phone providers, are willing to offer no-deposit coverage/service when they are authorized to deduct automatic payments from a checking account.

Carrying substantial amounts of cash is never a wise idea, and even low-income people have been known to carry two or three hundred dollars with them because they don't have a bank account.

There are also low-limit credit cards for people with no credit or bad credit. Many of these require payments be automatically taken from a checking account. Even when that isn't required, however, it can be a handy way to make sure a credit card bill is paid regularly.

While the low-income individual's balance may be modest, having a bank account allows that individual to conduct his personal business in the same manner as most people do. Being able to pay bills with a check, cash checks we receive, and say "yes" on applications that ask if you have a checking and savings account, are all things that having a bank account offers. The individual who has held an account with the same bank for a long period of time may have other advantages, as well. For example, in the event circumstances make getting (and paying back) a small, personal,

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