Finance

5 Tips On How To Reduce Your Banking Charges

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What charge your passes to your account most time depends on how you operates your bank account. A meticulous bank customer sure knows what to look out for in a bank statement to be sure that no excess charges are passed without question. But if you are not the financially finicky type, you need to carefully choose the kind of bank account you operate to ensure a good percentage of your revenue does not end up in your bank’s income.

A customer need to have various types of bank accounts for varying financial needs, in order to make sure you’re getting the most out of your bank balances, and positioning your finance appropriately. For example, you will keep a current account either corporate or personal when you are in business and a personal savings account for your savings and perhaps others savings account for emergency funds and others.

Truly free bank accounts are not available anywhere, don’t mind all the media noice and adds, no bank will bear the cost of maintaining your account for you, you still get to pay one way or the other. Some free charges accounts have you leave balances perpetually in the accounts, while others tie you to turnover covenants. So it is left to you to ensure you choose a bank account that works for you and manage applicable fees carefully.

How to reduce your banking charges

Here are some of our advise on the best ways you can reduce the fees and charges you pay to your bank.

1. Have a Clear Understanding of Your Banking Needs.

Banks, over the years have designed varieties of banking products and services, it is no longer the era of straight Current or straight Savings account. There are Savings account today that have the characteristics of Current account and vice versa. You must look at all the options the bank proposes to make the right choice that fits into your needs.

To make the right choice, you need to know what is important to you. Do you need to get a Cheque book or withdrawal booklet when you will have no need for them? Do you need an ATM Card when you know you may never need to pick cash at the ATM? You need to evaluate your need and be sure you are signing up for what you need only, those other items cost some extra money.

2. Shop Around For The Best Bank For You

You need to do a research about the options available in different banks before making a choice of which bank to do business with. The fees, charges and other cost associated with every accounts must be well studied and taken in.

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You should be informed enough to know whether the account you operates currently fits into your current banking needs in terms of charges and convinience. If your search is conducted online, be sure the bank you have selected has a local and easily accessible branch in your location in case you need to visit.

3. Change Your Banks if Need Be

Banks wants more customers so that they can earn more revenue from the banking relationships. They are not doing you any favor for keeping you. So you should not be stocked with a bank if you have been able to find another better options for you and your business.

If you can find a bank that could help you save a few cash in reduced charges or make little more in increased income please move. Your personal or business interest should be uppermost.

4. Close Unused Accounts.

You probably have accounts in banks you have not used or have abandoned for a while, those account may be accumulating charges that may cost you some cash in future. So adopt the habit of closing old and unused account to avoid unnecessary cost to you and your business.

5. Be informed

And lastly, keep yourself informed about new banking rules. Bank charges may change especially from regulators. It may help you save some extra bucks from excess charge claims from your bank.

Read More >>>  Banks Maintenance Tips

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Alamu Tosin

The writer is Alamu Tosin. I have three strong passions in life — football, blogging and movies — in that order. I love spending time with friends talking about the important things in life and hate nothing more than ‘authority’ and hypocrisy. My personal believe in life is that once an individual sets his/her mind to achieve something, it is totally possible. And oh!, I am a strong Lannister, because I always pay my debt. For writing or fixing gigs, contact tosinalamu@gmail.com.

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