Tips That Will Help You Bank Smarter

Banking can be complicated. There are so many banks around, and once you select one, the fine print and disclosures can confuse even the savviest of people. And, then, there are things like fees and rates to check, which makes things even more challenging.

That’s why we’ve compiled a few tips to help you bank a lot smarter – so you can save time and money. 

Review the fees: Look up the different fees you are paying and think if you could avoid this or at least get it reduced. If your bank has a requirement to maintain a high minimum balance, browse online and look for checking accounts that offer a high return on balances with a lower minimum balance requirement. Such banks may even offer you a certain number of fee-free ATM withdrawals every month, and they usually have a vast network of ATMs near your home or your place of work.

A high rate of return can be deceptive: Most banks offer a promotional interest rate that is much higher than what’s currently offered by other banks. A promotional or introductory rate may be very attractive but usually lasts only for a few months. It is therefore important to choose a bank that offers a consistently higher rate.

Plan your interaction with the bank: When you can and need to, plan your visit to the bank after getting an appointment to meet with the concerned executive. This will save you a lot of time and may also get you better service when you are at the bank. 

Inform your bank if you intend to close your account: If you fail to do so, the bank may charge you overdraft and maintenance fees. An automatic bill payment (if you have opted for this facility) can result in an overdraft when the maintenance fee kicks in. 

Opt for a CD when possible: Savings and money-market accounts can give you a return of about 1.8% APY. However, a CD (cash deposit) will give you at least 2% APY. So, if you have money that you don’t need to withdraw soon, a CD would be a better option. 

Inform your bank about your travel plans: Make sure to let the bank know before you head on a vacation, otherwise, your credit, debit, and ATM transactions may be declined.