Eight Ways to Reduce the Cost of Your Banking
Banks are a necessary part of any modern financial system.
However, that doesn't mean you should pay more in fees or charges than you have to.
Listed below are eight money saving tips to help you get the most out of your banking, and minimise and fees or charges.
Tip 1: Sign up for banking alerts: Many banks provide SMS alerts before bills and payments are to be made.
Sign up for this service.
This way you will be less likely to forget about bills and pay late payment fees.
It will also warn you when your Gucci shopping wife is on the rampage.
Get that bottle of vodka ready! Tip 2: Take advantage of FSA: Flexible spending accounts let you set aside money on a pre-tax basis for medical expenses.
Generally they are offered by employers under health benefits.
It can definitely be worth it.
Tip 3: Avoid loan products with early payout fees: If you have to get a loan, avoid one that has an early pay out fee.
These fees can be quite substantial and punish you for paying off a loan early.
Tip 4: Keep an eye on bank deals: Banks often keep their best deals for new customers.
Every 12 months keep an eye out for a Bank that may have a better deal.
If you bring five or six accounts over, you may be rewarded even more.
Tip 5: Transaction fees when refinancing your mortgage:: when refinancing your mortgage, keep an eye on what banks offer no transaction fees if you bring your mortgage over to them.
Transaction fees can be quite significant.
Tip 6: Balance your Cheque book every month: Writing cheques that bounce will cost you between $20 and $35.
Make sure you always have the money before writing a cheque.
But if you do have one bounce depending on your credit history the banks can be surprisingly forgiving and refund you the money.
Worth a try.
Although not where we live as expats...
if a cheque bounces it is a criminal offence and you have to go to court and possibly jail (definitely a good incentive to balance the books!) Tip 7: Keep minimum funds in your cheque account: Cheque accounts don't earn large amounts of interest, therefore it makes sense to transfer access money in these accounts to your savings accounts where they earn a higher rate of Interest.
Just make sure that you have enough in the account to cover all of the checks that you write.
As recommended above, $1000 is good.
Tip 8: Use a no fee cheque account: Why should you pay for writing your cheques.
Find a bank that offers a no fee checking account.
There are quite a few banks out there that offer these accounts.
Something, you have to have a minimum balance.
If this is the case weight up the difference between paying fees and the Interest you would earn in a normal account.
Go with the one that saves you or makes you the most money.
However, that doesn't mean you should pay more in fees or charges than you have to.
Listed below are eight money saving tips to help you get the most out of your banking, and minimise and fees or charges.
Tip 1: Sign up for banking alerts: Many banks provide SMS alerts before bills and payments are to be made.
Sign up for this service.
This way you will be less likely to forget about bills and pay late payment fees.
It will also warn you when your Gucci shopping wife is on the rampage.
Get that bottle of vodka ready! Tip 2: Take advantage of FSA: Flexible spending accounts let you set aside money on a pre-tax basis for medical expenses.
Generally they are offered by employers under health benefits.
It can definitely be worth it.
Tip 3: Avoid loan products with early payout fees: If you have to get a loan, avoid one that has an early pay out fee.
These fees can be quite substantial and punish you for paying off a loan early.
Tip 4: Keep an eye on bank deals: Banks often keep their best deals for new customers.
Every 12 months keep an eye out for a Bank that may have a better deal.
If you bring five or six accounts over, you may be rewarded even more.
Tip 5: Transaction fees when refinancing your mortgage:: when refinancing your mortgage, keep an eye on what banks offer no transaction fees if you bring your mortgage over to them.
Transaction fees can be quite significant.
Tip 6: Balance your Cheque book every month: Writing cheques that bounce will cost you between $20 and $35.
Make sure you always have the money before writing a cheque.
But if you do have one bounce depending on your credit history the banks can be surprisingly forgiving and refund you the money.
Worth a try.
Although not where we live as expats...
if a cheque bounces it is a criminal offence and you have to go to court and possibly jail (definitely a good incentive to balance the books!) Tip 7: Keep minimum funds in your cheque account: Cheque accounts don't earn large amounts of interest, therefore it makes sense to transfer access money in these accounts to your savings accounts where they earn a higher rate of Interest.
Just make sure that you have enough in the account to cover all of the checks that you write.
As recommended above, $1000 is good.
Tip 8: Use a no fee cheque account: Why should you pay for writing your cheques.
Find a bank that offers a no fee checking account.
There are quite a few banks out there that offer these accounts.
Something, you have to have a minimum balance.
If this is the case weight up the difference between paying fees and the Interest you would earn in a normal account.
Go with the one that saves you or makes you the most money.
Source...