4 Tips on how to save effectively in Banks

Tips on how to save effectively in Banks

Many of us think that putting our money in the bank is a safe and prudent savings. Yes, this is true, if we are wise in dealing with banks. Banks are not charities, these are for-profit entities that carry different types of fees and do all sorts of schemes to take a little of your money. The savings you can get in being wise in making bank transactions can add up after awhile and let you use your money anywhere.

Here are some tips on how to save money in the bank:

1. Mind the opportunity cost

Think about the factors that are affecting your money in the bank. There are fees that the bank is asking you to pay to maintain and use your own money? How much? They are the ones that require a minimum balance to perform an account? You may be interested in other alternatives that are available out there, waiting for their investments. You should always factor in the opportunities that are deprived of because you're putting your money in the bank. You may also be interested in taking a look in terms of other banks. Probably the bank that can best meet your needs is out there waiting for you.

2. Book Balance

Keep in mind to have your checkbook balance at the end of each month. Issuing bounced checks can cost you a lot. The average rate of issuing bad checks is $ 20. If you are not aware of the problem, you can easily issue several bounced checks in a given period of time and even that's too expensive.

3. Taming the ATM

Best practices in the use of ATM machines is to avoid using ATMs of other banks. That way you will save on ATM fees. However, it would not hurt if you also knew that the ATMs of other banks that charge no fees.

4. E-banking

With the advent of globalization, everything is becoming electronic. This is also true in the banking world and technology is rapidly becoming a reference point of competition. E-banking can save some money on transportation costs and, more importantly, it will save you time. The time you spend waiting on the bench can be used for other productive activities.

Truly, putting your money in the bank is a wise way to save money, but only if you are wise enough to prevent the bank from chipping away your wealth. In economics, it is not only the benefits such as annual income you should consider, you should always think about the costs involved.

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