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One of the most overlooked areas where people could save money is the way they do banking. Think about it... How much of your income is spent on bank charges? If you transfer money to a spouse or family member often, couldn't you cut down on costs by joining their bank?
The general perception is that moving banks is a complicated, time-consuming and expensive exercise. But it could be a lot easier with this four step guide:
Do your research:
When people buy a TV or a car, they invest a lot of time comparing the different prices and making sure they are getting value for money. Yet, when it comes to banking, this process is often neglected.
Try visiting the websites of different banks to get information about personal funding, interest rates and unique benefits. Even better, pop into a branch and speak to a consultant or call the client care centre.
"Comparing the cost of typical transactions such as monthly administration fees, cash withdrawals and stop and debit orders can save you money," says banking executive Carl Fisher. You may find that one bank does not charge for a transaction you use often – score!
Ask questions!
There is no way that you will know which product to use if you do not specify your needs. If you see an unspecified payment on your statement, call up your bank and ask them about it!
“A common pitfall of choosing a new bank is complex product offerings, hidden penalty fees and transaction limitations – make sure these are all explained to you upfront to avoid any surprises at the end of the month,” says Fischer.
Also take convenience into consideration. “Find out whether the bank has branches close to your home or office, what time they open, and if you are out on the road, whether you are able to access your money elsewhere."
Opening your account
Once you have researched your options, switching banks or opening another account at another bank is simple. To apply for an account you will need your identity document and a proof of residence.
When your application is accepted, your current bank will need your authorisation to provide your new bank with details of debit orders and any other transfers. This is where you'll have to get in touch with the organisations and inform them of your new banking details.
"It is easy to switch if you have the contact details and relevant information at hand when contacting a debit order initiator," says Fischer. "Find out if your new bank offers this service and also ensure your old bank is funded to prevent unpaid debit orders if the details are not changed in time."
When choosing a new bank, make sure that it's reputable and regulated by the banking ombudsman. Remember, at the end of the day you need to find the best option for YOU.
Would you consider switching banks if it saved you money? Or do you still think it's too much work for the pay-off?
The general perception is that moving banks is a complicated, time-consuming and expensive exercise. But it could be a lot easier with this four step guide:
Do your research:
When people buy a TV or a car, they invest a lot of time comparing the different prices and making sure they are getting value for money. Yet, when it comes to banking, this process is often neglected.
Try visiting the websites of different banks to get information about personal funding, interest rates and unique benefits. Even better, pop into a branch and speak to a consultant or call the client care centre.
"Comparing the cost of typical transactions such as monthly administration fees, cash withdrawals and stop and debit orders can save you money," says banking executive Carl Fisher. You may find that one bank does not charge for a transaction you use often – score!
Ask questions!
There is no way that you will know which product to use if you do not specify your needs. If you see an unspecified payment on your statement, call up your bank and ask them about it!
“A common pitfall of choosing a new bank is complex product offerings, hidden penalty fees and transaction limitations – make sure these are all explained to you upfront to avoid any surprises at the end of the month,” says Fischer.
Also take convenience into consideration. “Find out whether the bank has branches close to your home or office, what time they open, and if you are out on the road, whether you are able to access your money elsewhere."
Opening your account
Once you have researched your options, switching banks or opening another account at another bank is simple. To apply for an account you will need your identity document and a proof of residence.
When your application is accepted, your current bank will need your authorisation to provide your new bank with details of debit orders and any other transfers. This is where you'll have to get in touch with the organisations and inform them of your new banking details.
"It is easy to switch if you have the contact details and relevant information at hand when contacting a debit order initiator," says Fischer. "Find out if your new bank offers this service and also ensure your old bank is funded to prevent unpaid debit orders if the details are not changed in time."
When choosing a new bank, make sure that it's reputable and regulated by the banking ombudsman. Remember, at the end of the day you need to find the best option for YOU.
Would you consider switching banks if it saved you money? Or do you still think it's too much work for the pay-off?
