An everyday issue that tends to be an issue for many people is the proper handling of bank accounts. To manage your chequing or savings account intelligently, you do not need to be a finance expert. You only need to pay attention to some basic principles.
Here are five tips for managing your bank accounts effectively. To apply these tips well, you can buy a notebook to write down this data or use an Excel sheet.
1. Know your bank accounts
The first thing to do is find out how many accounts you have, which banks they belong to, what type they are (credit, debit, chequing, savings, investment, etc.), and how much money you have in them. Then, you should review the contract of each of the accounts. After reviewing this contract, you will understand your rights and responsibilities to manage the accounts rightly.
2. Check the average balance
Many accounts require a minimum average balance each month to avoid bank fees. For example, the HSBC Premier Chequing Account will charge a $50 monthly maintenance fee unless you maintain a combined balance of $75,000 across your personal and investment accounts, direct deposit $5,000 or more each month, or get a $500,000+ HSBC mortgage loan. Knowing the minimum amount required to maintain your account is essential to avoid account management fees. It will also help you avoid the unpleasant surprise of being charged a fee that you could have easily avoided if you knew the required average balance.
3. Review account statements month by month
It is essential to be aware of the operations and write down and keep the receipts of what you spend or pay. To compare your monthly statement with your accounts, it’s best to list them separately. If you do this, you will know exactly what you are paying for, and there will be no surprises.
4. Use Internet banking
Today, banks offer a large number of services online. You can access your account information, transfer funds, view your account statement, and make various payments online. Taking advantage of these services will save you time and are more secure. However, you have to be very careful when checking your account online. Public places are not a good place to make transactions because you risk compromising the account’s security. It is advisable to carry out operations of this type from your personal computer or mobile device.
5. Be cautious
Security is one of the fundamental points for managing your bank accounts. You must take good care of your passwords (do not share them). You must not lose sight of your card when carrying out any operation (you run the risk of cloning). Avoid passing debit cards more than once through the electronic terminal since double charges may occur for this type of card due to a delay in the authorization.
In conclusion
Once you know your accounts well and know what they offer you and what they ask for in return, you can have a clearer picture of whether they are convenient or not. In addition, you will know how well you use your resources and understand your financial status.