Debt Tips   

Banking

Shop around for the best services

As banks consolidate, competition is decreasing and fees are increasing. Think about the services you need first, and then you should call each bank in your area to see to offers what. You wan to go with the bank that offers the most services at the cheapest rates. So, if you are a person who uses ATMs a lot, you need a bank that will have many branches around town – or at least a bank that has the lowest ATM out of network fees involved. If you need online banking – be sure the bank provides free online services. Find a bank with a stripped down low cost for free checking account. Remember, not all banks are the same, so be sure to compare. Not all banking customers are the same either, so be sure your bank offers you what you need specifically. Is the bank you are interested in a commercial bank, if so, be certain they will not forget you as there non commercial customer. Some banks specialize in commercial accounts, so if you are not a commercial account holder, be certain the bank will provide you the same low cost offerings. For the most part, you will do better with a smaller local bank.

Use a credit union

Forget the bank and go for a credit union. Typically, credit unions provide lower rates on loans. Credit unions also provide higher rates on savings and other interest paid accounts. They offer lower fees than commercial banks as well. These days, most credit unions in your area will accept you as a member. Many times, you just have to open a savings account to become a member. Meaning, to join the educator credit union in your town, you may not have to be a teacher or employed by a school. So, be sure to call around to your local credit unions to see what the requirements are.

Stick with in-network ATMs

Be sure that you are only using your bank’s ATMs so you are not racking up unnecessary fees. If this means you have to plan your cash withdrawals better, than do it. If you are using ATMs all the time but your bank does not provide enough ATM locations, you need to switch banks or plan better.

Read your statements

Many people who are looking at ways to become debt free pay close attention to their statements. If are not at least balancing your checkbook, you may be missing out on many extra fees and or ways to track your finances better.

Pay attention to bank mail

Many times, when people get their monthly statement in the mail they go right for the statement section and they throw away any pamphlets or other info that may be tucked in the same envelope. Many times, these extra pamphlets contain valuable info regarding fee changes and other info you need to know. Pay attention. Your bank may be changing fees and you threw the paperwork away not knowing about it.

Free checking accounts

Just about all banks offer free checking accounts. Most have some sort of hidden fees so be aware of this. The accounts that are really free of fees usually do not provide interest, but online banks typically do. Online banks offer free checking accounts and many have interest paid on them. These are not brick and mortar banks, but they are reputable. Do your homework when searching though. As far as the brick and mortar banks go, you can even get free online banking, be sure to check to see if your bank does.

Direct deposit

Direct deposit is free (at most banks) and it is very convenient. Check your employer’s payroll or human resources department for paperwork regarding direct deposit. Direct deposit puts your paychecks right into your banking account. This saves you having to make those last minute trips to the bank on Friday’s (or when ever your payday is) and will save you a lot of time. You save in many areas when you utilize this feature for your payroll checks. In fact, your money hits your banking account faster than it would if you waited to get your paper check from payroll and then traveled to your bank to deposit it.

Know the lingo

When you have an established relationship with your bank and you then acquire bank credit cards, be sure you understand the terms in complete detail. Credit cards can have tricky stipulations. Many people focus on the interest rates. This is fine, but be sure to look deeper too when you get these credit cards. Be certain that you understand the grace period. This is the amount of time you have after using the card before the interest rate clock starts ticking. Typically, 21 days is the term time. But you need to find out for sure what your credit card terms are. Then you can really find out how good the card is for you – beyond its interest rate.

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