ARTICLES > 15 Ways to Save Money at Your Bank.
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15 Ways to Save Money at Your Bank.
► Here’s 15 hints on how to save money at your bank:1. Shop around. Most people stick with the same bank all their life, but not all banks are the same. Certainly when it comes to interest rates and fees. Shop around and make sure the rate you receive is the best you can get both for money you borrow and for money you have deposited.2. Make sure you know how your bank charges for fees. How much do you pay for the use of Eft-pos or cheque transactions? How much to speak over the counter to a teller? Find out and consider how you can save money. For instance, if you are paying for each Eft-pos transaction, save by withdrawing an amount of cash at the beginning of each week (but remember, you’ll need discipline in spending it!). 3. Get the right account. Discover what accounts your bank has and ask a manager which account is best for you. Think about how you like to bank (for example, full service or just electronic deposits and withdrawals) and make sure they provide an account that matches your needs. 4. Use phone or internet banking. It’s cheaper, most banks charge an extra fee for over the counter transactions. 5. Almost every account will have fees attached to it. Close any accounts you are not using or do not need. One bank publication suggested that up to 60% of accounts were not used! Recently I closed two accounts I hardly ever used and saved myself $10 a month. 6. Students, retirees, and those who have a mortgage with particular bank should not pay fees on their day-to-day transaction account. Check with the bank to make sure you are receiving this advantage. (Many banks have no-fee or low-fee accounts that you can link with your mortgage account). 7. In a similar vein; if you have a large amount of money invested in a bank, ask what deal they will do to reward you. 8. Following on from the previous point; avoid going into the bank. Banks now charge for most teller transactions at a far higher rate than phone or internet banking. 9. Consider an account without a cheque-book if you don't think you'll use one – that can be a saving in fees. Alternatively, if you have a lot of transactions each month, consider an account that charges a flat fee and rather than individual transaction fees. 10. Don’t overdraw your accounts. Even if you have an overdraft facility overdrawing your accounts will cost you in interest and bank fees. This is crucial – recently I overdrew one of our accounts by $2; it cost me a $20 fee. NOTE: at the time of writing banks were suggesting this may soon change - we'll report back in next month's newsletter. 11. Do not pay interest on your credit card. Pay it off immediately. This is the number one mistake of most people – credit card debt is a black hole that sucks money into it!! You can even ask your bank to pay off your card by direct debit each month, that way it happens automatically and you never have to think about it. Or you can get a debit card which you load money onto prior to spending – and when it’s spent, it’s spent. 12. Avoid dishonour fees. Make sure you have sufficient funds in your account to cover any upcoming payments so that you avoid overdrawn, dishonour or failed payment fees. If you regularly go into overdraft, set up an overdraft facility. It'll be cheaper than paying daily dishonour fees. 13. Only use your own bank’s ATM machine. Using a machine from another bank to withdraw money will usually incur a fee. Sure that fee is small, but those small amounts add up. 14. Consolidate your debts. It doesn’t work every time, but in most cases you can save on transaction fees and interest costs simply by rolling all your debts into one. 15. Check your statement. Banks do sometimes make mistakes so make sure you check your monthly statement to make sure the correct fees are charged and correct interest is being paid.
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Back in my primary school days Wednesday was banking day. My parents had opened a bank account for me and once a week I would take twenty cents to school and it would be put into my account. The expectation was not only that I would learn good banking habits, but that I would develop a high degree of loyalty towards that particular bank which would, in turn, be loyal to me.
