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How your Bank Can Save you Money

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If you think your bank is costing you too much money, then now is the time to look at ways your bank can help you save money rather than spend it. Although there will always be bank charges and fees, there are ways to save money using banks and make the most of their services. Here are some tips about how to cut down on bank costs and save yourself money.

Savings

One way to save yourself money through your bank is to open a savings account. If you have a fair amount of money in your current account, then transferring it to a savings account with a high interest rate is a good idea. Having a savings account does more than just save you money; it earns you money. The interest generated from a savings account means that you are making money from the money that you store. However, you should remember that many banks charge a fee unless if you go below a minimum amount in the account, so keep track of this in order to save yourself money.

ATM charges

Another way that you can save money when banking is to use free ATM machines. Some ATM’s charge you a fee to take money out, either for the convenience of because the ATM does not belong to your bank. If at all possible you should stick to ATM’s that don’t charge you money. If you do this regularly then you could save yourself £100 a year or more.

Overdrafts

Perhaps the most expensive fees that you can get charged by your bank are for using an unauthorised overdraft. Even if you never go into the red, it is advisable to agree an overdraft amount with your bank. This will save you a lot of money in case you do ever go into the red, and it costs you nothing if you don’t use it.

Online banking

Online banking can save you money by helping you to pay bills on time and avoiding late payment fees. It can also help you to manage your money better and so budget more effectively thus reducing your spending. However, some banks will charge you for the privilege of using online banking. You should definitely look for a bank or account that does not charge you for using online banking, as there is no need to pay for basic online banking these days. Although the fees might be minimal, any money saved is good.

Borrowing money

Perhaps the area you can save the most money on is when you borrow money. Make sure that you get the best deal possible on any credit cards or loans you take out, and remove any unnecessary features that are costing you money.

Change banks if you have to

If your bank is still costing you more money than you would like, then don’t be afraid to look elsewhere. There is no reason why you should be loyal to a bank if they don’t serve your needs, and other banks may offer you better rates because you are a new customer. Even if you are currently happy you should look at the competition every few months to make you that sure terms are the best you can get.

9 Responses to “How your Bank Can Save you Money”

1. mamalug Says:
   November 26th, 2008 at 7:37 pm

   Is it better to own your own home or to rent and save money in the bank with high interest return?

2. Mary B Says:
   November 27th, 2008 at 12:39 am

   If you find a bank that is paying high-interest…let us know!
   References :
   see profile…I am here to help…I never sell anything online.

3. Just_One_Man's_Opinion Says:
   November 27th, 2008 at 12:41 am

   Depends on LOTS and lots of factors; e.g., how much rent versus how much for a mortgage payment. In other words, you've skewed the question by saying that you can "save" money renting, which may or may not be true! Maybe an apartment rents for $600 per month. WHAT IF you're mortgage payment was only $500 per month? You'd be money ahead buying, right? UNLESS … the house was in horrible disrepair and you spent on average $300 a month in maintenance. THEN you'd be money ahead renting, right? UNLESS … the housing market was soooooo hot that houses in your neighborhood appreciated at 3 percent per month (or 36 percent per year). THEN you'd be money ahead buying, right?

   I hope that you get the point that there are MANY factors that make renting a better option for some and buying a better option for others. Weigh those factors and make a decision that makes sense for YOU, in YOUR AREA, given your own personal aversion to risk, the housing market, your hopes, dreams, and priorities, etc.
   References :

4. Lowjack T Says:
   November 27th, 2008 at 12:43 am

   Interest rates are really low now, so you aren't likely to get a high interest return.

   On the other hand, home prices are falling. Wait until the winter when buyers are really scarce and pounce then. You'll get even lower prices then.

   Then sit on the house for 5-10 years if you plan on selling it. If you already have a house, then keep it as a rental property and hire a property management company to take care of that for you. If this is your first home, then prepare to live in it for a while.
   References :

5. Sezbo Says:
   November 27th, 2008 at 12:45 am

   It is much better to own your own house. By owning your own house, you build wealth in the form of property value. Renting forces you to make payments on something that you can never own. So at the end of the day, with sometimes little difference in payments, someone who bought a house would have much more than a renter, who paid that whole time to own nothing. The final stats are something like this: Homeowners are worth, on average, 40 times more monetarily than renters.
   References :

6. Brian M Says:
   November 27th, 2008 at 12:47 am

   You want a simple answer: Easier to own the house. The End.
   References :

7. cowboydoc Says:
   November 27th, 2008 at 12:49 am

   There's more then one school of thought here. You see some areas of Real Estate are on the rise, jumping dramatically. If you live in one of these places you may be able to make a very high come back on your investment but, you must carefully investigate the options here.

   A bank can only give you a set amount but, there's a guarantee on it, while the Real Estate will fluctuate back and forth and must be watched carefully. If your a gambler, Real Estate, if your a careful person, the bank.
   References :

8. Frank R Says:
   November 27th, 2008 at 12:51 am

   In most cases it is better to own than to rent. No bank will pay high enough interest to make renting a better deal. However, if you will only be living in an area for a short period of time, or, if house prices are falling, then renting might be the better option for the short term.
   References :

9. glenn Says:
   November 27th, 2008 at 12:53 am

   There is a great book called the "automatic millionaire".

   It says that most of us have no will power and in order to build wealth we have to set up systems to build our wealth automatically so that we don't have to think about it on a daily basis.

   It says buying your own home is the very basic first thing to do, then you build from there.

   Think about it- just living there for several years you will build wealth almost by mistake. If you rent most people will spend the other money and not invest.
   References :

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