Finance & Money
5 ways to improve your money mindset
Finance & Money
March 25, 2019 By Budget Insurance
Your personal bank account is the centre of all your personal finances. This is where your primary income and expenses come and go through each month. If you want to get the most out of your bank account without paying unnecessary amounts on fees and admin costs, you need to have the right account that suits your daily banking needs.
Here are a few tips on getting the most out of your bank account.
Choose your bank account wisely
Don’t choose a bank account based on its monthly admin costs; instead, to avoid unnecessary charges, base the decision on your general day-to-day banking needs. For example, on a “pay as you use” kind of account, you may be charged every time you make a transaction, which includes every time you withdraw money or swipe your card, or even make a deposit.
“Pay as you use” would be best suited to someone who doesn’t have a high number of monthly transactions and doesn’t use their account multiple times a day.
If your account is busy and you are often swiping, withdrawing and transferring, you should look at one of the bundle offerings that your bank offers as these are better for people with a higher number of monthly transactions. When opening the account, choose one with the most appropriate number of free transactions based on your needs.
Avoid using another bank’s ATM
Withdrawing money at an ATM can cost you in fees (check with your bank), but if you withdraw from another bank’s ATM you will definitely be charged. It may be inconvenient to dash around looking for the ATM you need, so plan ahead when leaving the house and make sure your route includes stopping by the most convenient, safest one near you. According to IOL Finance, the cheapest place to withdraw cash is at till points.
Look for a savings account or savings pocket
A low-cost account is a good idea if you are trying to achieve your savings goals. Some accounts have a separate savings account or savings pocket, which is convenient. Check whether the external savings account charges you to put money in and take money out. Also consider that a savings pocket might not give you the same high-interest rate as a dedicated savings account, so the higher fees with the savings account may help you save.
Quick tips:
The information contained in this article is for information purposes only and does not constitute professional advice.
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