Good Morning DINKS. Today we are discussing different ways to use our bank account wisely. We often discuss different ways on how to make our debt more efficient by using our credit cards wisely, and today DINKS is going to give you some helpful tips on how to use your bank accounts wisely as well.
This topic came up recently because I was making a large purchase and I was deciding which of my bank accounts to use. I was also deciding if I should use the money in my bank account instead of charging the purchase on my credit card.
I currently use two banks and have different bank accounts for several reasons. The main reason why I have a relationship with two different banks is because it helps me easily manage my financial goals and monthly bills.
5 Easy Ways to Use Your Bank Account Wisely:
- Keep Bills Separate. Different bank accounts allow us to manage our bills separately which makes managing our money very easy. If we have more than one income we can have our primary and secondary incomes deposited into different bank accounts. The money in each bank account can be used towards a different goal and for a different purpose. I have both a US Dollar as well as a Canadian Dollar bank account. My US Dollar account is used to save for travel expenses and my Canadian Dollar bank account is used for daily living expenses.
- Always Maintain a Minimum Balance. Having several bank accounts can be very costly if we are required to pay monthly service, administration or maintenance fees. We should try to find bank accounts that offer to waive our monthly fees if we maintain a minimum balance. I recently opened a TD Bank Convenience Checking Account; this account waives the $15 monthly fee if I maintain a minimum balance of at least $100 per day.
- Don’t use other Bank ATMS. I have said this time and time again; I will never pay fees or service charges. I think that ATM service charges are a waste of money and a total rip-off. If we find our wallets lacking cash we should always try to get cash back on our purchases at the grocery store or at the pharmacy. This ensures that we will have cash on us at all times and it also ensures that we will never have to pay to get cash at another banks ATM.
- Earn perks whenever possible. Many bank accounts offer perks for every time that we swipe our Debit Card. We can earn points or cash back on all of our debit purchases. Check with your Bank and find out which accounts offer free perks.
- Never Close a Bank Account. We don’t want to have more bank accounts open than need. However, if we have a bank account that has a zero balance we should still keep it open just in case we need it in the future. I have a US Dollar bank account at one of my financial institutions that currently has a zero balance because the interest rate is higher on the account with my other bank. However, I am keeping the bank account open because when a bank decides to put a hold on our deposits it is based on how long the account has been open, not how long we have been a client.
Photo by Editor B