Many of us think that putting money in the bank is a safe and smart way to save. Yes, this is true if we are smart in our dealings with banks. Banks are not charitable institutions, they are for-profit companies that charge various types of fees and do everything possible to take away some of your money.
The savings you can make if you bank wisely can add up after a while, and you can put your money where you want it.
Here are some Tips On How To Save Money Effectively In Banks:
1. Consider opportunity costs
Think about the factors that are weighing down your money in the bank. Does the bank charge you fees to keep and use your own money? How high are they? Is there a minimum balance required to maintain an account? You may be interested in other alternatives that are out there waiting for you to invest. You should always consider the opportunities you are missing out on because you are putting your money in the bank. You might also be interested in taking a look at other banks’ terms. Chances are, the bank that best fits your needs is out there waiting for you.
2. Balancing books
Always remember to balance your chequebooks at the end of each month. Writing bad checks can cost you a lot. The average fee for writing checks with insufficient funds is $20. If you are not aware of the problem, you can easily write several bad checks within a given period of time, which is very costly indeed.
3. Tame the ATMs
It is best to avoid using ATMs from other banks. This way, you will save on ATM fees. However, it won’t hurt if you know the ATMs of other banks that don’t charge fees.
With the advent of globalization, everything is becoming electronic. This is true in the banking world as well, and technology is quickly becoming a benchmark for the competition. E-banking can save you money on transportation costs and, more importantly, it saves you time. The time you spend waiting at the bank can be used for other productive activities.
Putting your money in the bank is really a smart way to save money, but only if you are smart enough to prevent the bank from taking your assets. When saving money, you should not only consider the benefits such as annual returns, but also the associated costs.