Ok, it’s been days since I left where it is. Today, I’m going to talk much more about banking and saving fundamental toward better financial aspects. First thing first!!
Lets talk about what we must know about banking and saving:
- Money in a bank account are always safe from any other kind of institution. Minimum risk – trust me.
- We have to paid for the convenience of a bank account
- All the time – inflation can eat what you earn from the bank
- Not every interest rate are calculate as equal, only the APYs are calculated the same way
- But still we can get better rate if we know how – CDs maybe.
- Learn the biting facts of ATM fees – they can take out your budget
- Know how to make the best deal using the power of banking
Well, that is the basic which people must know cause I’ll move more deep within the circle of banking and saving with all the info below:
1. Picking up the right account.
Banks offer several different types of checking and savings accounts: Some pay interest, some don’t. Some offer perks, some don’t. Some are specifically for senior citizens or students, while others are geared to those with low incomes. They all share one thing in common, though. They each have restrictions, fees, and opportunities to waive fees if you meet certain requirements.
Always consider things when shopping for a bank. How much that you plan to put into the account. The bigger cash you put in the bigger chances you will get “free’ checking with interest. With such minimum bank balance will qualifies you form some aspects such as zero interest or monthly charge.
Your checks wrote down frequencies can also be taken into account while bank like to put high heel charge when you exceed ‘their’ limit.
Ah, one more thing – never forget to analysis that how many relating bank of affiliate in conjunction with your “bank” – which very useful when in need to use ATM, especially when your “local” ATM are absent.
2. Take an interest over interest.
Putting up your money in an interest-bearing account might seem for a no-brain. Rather than that a no-interest checking account might also be more cost-effective.
Interest-bearing account don’t bear that much – Sometimes banks offer to waive fees if you maintain a higher balance in your account. As tempting as this may seem, make sure the expense of maintaining the account doesn’t exceed the interest paid. There can be an opportunity cost to tying up all that cash in a low-yielding account.
It way better to consider CDs, which Instead of parking the majority of your cash in a savings account, you could open a certificate of deposit (CD). If you’ve opened one at your bank, ask if your CD, checking and savings accounts can be “linked” – that way, you’ll have an easier time meeting minimum balance requirements in your checking account. When you open a CD, you agree not to withdraw your money for a period of time ranging from three months to five years or more. The shorter the term of the CD, the lower the rate you’ll get.
If interest rates fall, you’re in luck because the bank must give you the rate it quoted when you bought the CD. If rates climb, however, you’re stuck with the rate you agreed to even though it’s lower than one you could get if you bought a new CD.
When opening a CD, be sure you understand whether the rate is fixed or variable, and how often the interest compounds. A CD interest rate can yield different sums of money depending on whether a rate is compounded daily, weekly, monthly, quarterly, or yearly.
3. Beating fees – checking can cost $200-plus per year, but forget that if we know how.
Few people would pay a bank $15 or $20 a month for an account that pays no interest if they knew how to avoid it, and if avoiding it didn’t take too much work.
Buy cheap checks if you write a large number of checks, it may pay to shop around. Either buying with higher price we might also buy it direct from the printer.
Get overdraft protection which is usually free to set up.The average bounced check fee ranges from $20 to $30. If ever you write a check that exceeds your account balance, overdraft protection automatically covers the extra money needed. But be sure your bank isn’t hitting you with a daily fee in addition to the non-sufficient funds fee if you bounce a check. Also, make sure you get 30 days to repay the overdraft. A number of banks hide charges and restrictions for people who use their overdraft protection service.
Ask for discounts. Periodically check with your bank to see if there are better deals for your money. Over time, your financial situation changes and you may qualify for a higher-interest, lower-cost account.
If you have a debit card, ask for cash which is another way to dodge ATM surcharges is to ask for extra cash when you make a purchase with your bank’s debit card. Just ask your grocer for an extra $50 in cash, and you’ll pay no fees in most cases. (Most banks don’t charge a fee, but make sure your bank is not in the minority, because you may be charged anywhere from 15 cents to $1.50 per debit transaction. If this is the case with your bank, be more cautious with the card’s use – or get a new bank that doesn’t charge for debits.)
Invest in the bank. Some small- and mid-size banks offer free checking and free checks to shareholders. Contact a few local banks and ask if they offer special deals to shareholders. If they do, invest in a single share and open an account. Use a discount broker to buy that share.
Some banks offer no-fee checking accounts if you agree to do all your banking at its ATMs. If you must visit a teller, make sure it’s for a transaction that you couldn’t perform at an ATM, otherwise you’ll be charged a fee. Banks also may offer low-fee checking if you confine yourself to 10 or fewer transactions a month, including ATM withdrawals, checks, and debit card purchases.
4. Online banking
This best to reduce the time spent balancing a chequebook, transferring money and paying bills. Many U.S. households already perform banking transactions online and the penetration rate is rising.
Online banking can come in many forms. It can be nothing more than a recurring bill paid to a company by your traditional bank, to a high-yield account at an online bank that has no physical presence.
The best bank Web sites go beyond bill payment and balance updates to let you check your credit card accounts, look at both your banking and brokerage accounts, make trades, and get free stock quotes.
Banks with online services have gone to great lengths to increase the security of their transactions in recent years, adding new layers of encryption.
Internet banks don’t usually have their own ATMs, so you will pay surcharges every time you use another institution’s, although you may be offered some reimbursement for these fees by your bank. Also, be aware of the occasional Internet bank whose accounts are not insured by the FDIC.
There are lot of thing that can be find out there. What I states above are just a tiny bit of information that I known and read this whole time. Have good time reading and this is it from me today. Daaaa