Tips On How To Save Effectively In Banks

[Trillionphil]

Many of us think that putting our money in the bank is a secure and wise way of saving. Yes, this is true if we are wise in dealing with banks. Banks are not charitable institutions, these are profit-driven entities which charge different kinds of fees and do all sorts of schemes to take away some of your money. The savings that you can get in being wise in making bank transactions can add up after some time and let you use your money where you want to.

Here are some tips on how to effectively save money in the bank:

Mind the Opportunity Cost

Think about the factors that are affecting your money in the bank. Are there fees that the bank is asking you to pay for keeping and using your own money? How much? Are they requiring a minimum balance for holding an account? You might be interested in other alternatives that are available out there, waiting for your investment. You should always factor in the opportunities that you are deprived of because you are putting your money in the bank. You might also be interested in taking a look into the terms of other banks. Probably the bank that can best suit your needs is out there waiting for you.

Book Balancing

Always bear in mind to have your checkbooks balanced at the end of every month. Issuing bounced checks can cost you a lot. The average fee for issuing checks with insufficient funds is $20. If you are not aware of the problem, you can easily issue several bounced checks in a certain period of time and this is very costly indeed.

Tame the ATM Machines

The best practice in using ATM machines is to avoid using ATM machines of other banks. This way, you will save on ATM fees. However, it wouldn't hurt if you also knew the ATM machines of other banks which do not charge fees.

E-banking

With the advent of globalization, everything is becoming electronic. This is also true in the banking world and technology is quickly becoming a benchmark of competition. E-banking can save you some money from transportation costs and more importantly, it will save you time. The time you spend waiting at the bank can be used for some other productive activities.

Truly, putting your money in the bank is a wise way of saving money, but only if you are wise enough to prevent the bank from chipping away your wealth. In saving, it is not only the benefits such as annual returns which you should consider, you should always think about the costs involved in the process.​

 

[Augusta]

You are so right on this, even when we saved our money in the bank we need to look out for loophole that might reduce our money while in there. The issue of the ATM usage is very correct, I like to mostly use my bank ATM machine to avoid cost from other ATM banks. And it is good to always a lump sum to avoid unnecessary sending of sms from the bank when you withdraw money, which one still need to pay for all the time sms is send out. Again it is good to use a bank nearer to your locality to avoid transportation charges too. These will help to avoid reduction of your bank balance

 

[Alexandoy]

I agree that it is best to use only the ATM machine of your bank because there is a service charge when you use the ATM of other banks (that are interconnected in the banking ATM network). But I have to admit that sometimes I get to withdraw cash from another ATM machine when I am in a hurry like I have to pay someone immediately so I would withdraw cash from the nearest cash machine that I would see. Come to think of it that if you withdraw every day from the cash machines of other banks you will incur about $10 in expenses for the service charge. That's a big amount of money.