Banking accounts: Necessary for saving money, or not necessary?

Alot of banks have alot of different choices for different interest rates - but most of the higher interest rates might have different rules - for example, a regular bank account might have a 3% annual interest rate - which isnt much at the end of the year, but those rules allow you to be able to take your money out any day of the week, whenever you need it. Other choices a bank might have might say that you get a 10% interest rate if you keep it in there all year as long as you dont touch it, or maybe as long as you have a minimum of a certain amount in there at all times, etc. A bank wants you to keep your money in there for as long as possible. That way, they can use that money to give other people loans and then give you back your money later on. Go into a couple of places and talk to someone about savings. They arent salesmen, so they really will try and suggest a few things and explain them to you in words that arent confusing or try to rip you off or anything like that. And some banks might have better deals than others. But, as far as a bank versus your jar at home - just remember - if a bank happens to get robbed, they are insured so your money will still be there for you when you want it. More than likely, your jar wont stay in one place forever, so how can you be sure that it will always be safe? Even a very small interest rate will yeild at least a little bit. Plus, if you ever need it - no matter where you are, you will have access to it, unlike your jar.

It depends. What's the inflation rate in your country? If it's close to zero, then it's OK to tuck your money away in your own home because it won't lose value over time, but if you have inflation you might consider investing it (not necessarily with bank) so that it at least keeps value.

On the other hand, you have to consider the bank fees and the rate of return the bank offers (I'm assuming you're talking about a savings account). If you have a negative net return (when you deduce the fees from the return you realize you're losing money) and at the end of the day keeping the money in the bank would deplete it more than inflation, then it's better to keep it in your room.

Bank account collect some but not much interest earnings. When you have a chunk saved up you can tansfer to some CD or other long tern account that's harder to casually withdraw from.

establishing a savings account is smarter. many employers now prefer direct deposit rather than mailing payroll checks every two weeks. you most likely will not stay with your new employer for years and years, or you may add on a 2nd job.