Banking can get extremely complicated. There are numerous banks out there, and even after you select a particular bank to do business with, the options, rate and fees, fine print, and disclosures can make it overwhelming for even the most experienced of people. That’s why we’ve listed these tricks and tips to help you bank a whole lot smarter.
Re-Evaluate Your Bank
If you’ve been with the same bank for many years, it’s a good idea to take a look at the benefits the bank is providing you and the fees that you pay. For instance, if you are paying a monthly fee for your checking account, you may want to move to a bank that doesn’t charge fees to maintain a checking account.
Check What Rates Are Being Offered by Other Banks
You may really like the service offered by your bank, but don’t assume that your bank is always giving you the best possible rate. So, from to time, check the rates offered by other banks as well.
Don’t Let a High Rate Persuade You to Open an Account at A Bank
Many banks offer high rates for a few months after you open your account – this is called a promotional rate. So, don’t be persuaded into opening an account with a particular bank solely because a high rate is being offered. Instead, make sure to check the fine print and go through the other terms and conditions.
Let Your Bank Know if You Want to Close an Account
Don’t assume that your bank will close your account if you maintain a zero balance for a few months. If you need to close an account, contact the bank at the earliest to know what the process is. Also, if you’ve automated any bill payments, ensure that you move these to the new account before closing your existing account.
Open an Account with An Online Bank
Even if you have an account at a traditional, brick-and-mortar bank, consider opening an account with an online bank as well. Online banks offer much better rates in comparison to traditional banks, helping you maximize your APY.
Don’t Forget About Unused Credit Cards
There’s nothing wrong with not using a particular credit card. But, ensure that you aren’t paying a high annual fee for a card you never use. If you are paying a fee for it, it may be wiser to close your account. Keep in mind that closing an old account will affect your credit score, so you’ll need to weigh out the pros and cons of doing this.