Is your bank account the best match for your current lifestyle and needs? If your answer is not an emphatic “yes!”, or if you aren’t sure, it may be time to conduct an honest assessment.
Ryan Prozesky, spokesperson for FNB, notes, “A bank account should be considered a partner, and choosing the right partner for your lifestyle will go a long way towards saving you frustration, money and time.”
Prozesky provides some tips for assessing your bank account, and using it to your best advantage.
- Inspect the monthly fees. When considering monthly fees, don’t look at price alone, Prozesky cautions. Consider the product inclusions and value offered, and whether these meet your needs.
- Consider your transactional needs. Select an account that complements your lifestyle. If you have basic banking requirements, opt for an account with a low monthly fee and a pay-as-you-use structure.
If you use your account more frequently, a product that allows you to perform multiple transactions, without incurring additional fees, will be better suited. - Separate your savings. Ideally, you should have a separate bank account for your savings.
Most banks will allow you to open a savings account with a deposit of as little as R500.
Savings accounts are among the most affordable accounts as there are no fees, charges or commissions when depositing. Your deposit is safe and it will attract a higher rate of interest than it would in a general transactional account. - Make the most of rewards. Take the time to learn about any rewards and benefits offered with your bank account. Used to best effect, rewards can earn you more than you pay in fees.
- Bank electronically. The best way to avoid high transaction fees is to deposit your funds electronically. Similarly, Prozesky says, “A good alternative to using cash is to swipe your debit card. Not only is swiping a safer option than carrying cash, but it often doesn’t attract any transaction fees.”
- Make the most of digital banking facilities. Balance checks, prepaid transactions, account payments and a host of other transactions can be done via electronic banking. Apps and online banking are economical and convenient, and a safer choice than using an ATM.