Seven Ways to Save Money Banking

The objective of opening a bank account is either to hold or save money. Most people would rather put their cash somewhere reliable instead of shoving it under the mattress or under the floor. Unfortunately, banks are becoming more costly as the economy worsens. A consumer must now pay close attention to several things before leaving money in an account. In addition, once you open an account, you must use it wisely to avoid being slammed with miscellaneous fees. Here is some advice on how to practice cheap banking.


1.   Search for Low Initial Deposit

 
There used to be a time when a customer could open up an account with as little as $25. There are still some banks around that have a low initial deposit requirement, but the amount is becoming smaller by the day. Many banking institutions have raised their initial deposit requirement to $100. If you do not have that amount of money available, that could be a big deal. Scour the internet for banks that take smaller deposits.

2.   No Minimum Balance

 
Some banks charge the customer a fee if he or she does not keep a certain amount of cash in the account. The amounts are outlined before you sign up. Make sure you read the description thoroughly and choose a bank that does not have a minimum balance requirement.

3.   No Monthly Maintenance Fees

 
Choose a bank account with a very low monthly maintenance fee. If it is at all possible, try to find one that does not charge this. If the free choice is not available, the next best fee is around $3 per month. Some banks offer to eliminate the monthly fee if the customer signs up for direct deposit. If your employer offers direct deposit, you can use is to eliminate the extra bank charges.

4.   Avoid Overdrafts

 
The one thing that will cost you the most in all your years of banking is overdraft charges. Overdraft charges are expenses you accrue when you try to purchase something with insufficient funds in the account. Each time you make this mistake, your friendly neighborhood bank will charge you approximately $35. To avoid these charges, keep a log of all of your transactions. The good old-fashioned ledger still serves its purpose. Use it and make it your best friend.

5.   Use the ATM Less Frequently

 
Everyone loves to grab money from the ATM. However, banks are charging more for ATM transactions. Depending on the institution, you may have to pay $1.50 or more every time you retrieve funds from a machine. On top of that, sometimes the ATM company will charge you as well. In worst cases, you might end up spending $6 just to pull out $20. Make your ATM trips less frequent by taking more money out. Do not visit a machine unless you need at least $100. Use your debit card instead.

6.   Pay Bills Electronically

 
Instead of using paper checks that you will have to re-order, sign up for your bank’s bill pay option. That way your utility company can easily withdraw their payments right from your account electronically. It will save you money spent on paper checks, and you might receive a discount from the utility company as well.

7.   Sign up for Interest Bearing Accounts

 
Choosing only interest bearing accounts is a good way to make money. If you are the type to leave your funds in the account for a while, your money can grow. Every year you will have extra funds in your account. In time, you could make a considerable profit.

Jessica Lambert likes to write about personal finance, saving money & how to find her free credit score online.

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