Don’t Make These Costly Mistakes While Banking

Don’t Make These Costly Mistakes While Banking

Knowledge is power, ignorance is a crime especially in the field of finance. It is important for individuals and business to know everything about banking because a single mistake can turn into a costly affair. Don’t make the below mistakes.

  1. As a conscientious individual, it is your responsibility that you never end up paying a maintenance fee for your checking account. It is within your capabilities to ensure that you maintain the minimum balance in your account. You can choose to have your salary deposited into this account or a better option is to choose a bank whose minimal requirements are meetable.
  2. If you are not alert you will have to pay overdraft fees when your account has insufficient funds; overdraft fees are always high. Irrespective of whether the bank approves a transaction or rejects it if you have insufficient funds in your account for a particular transaction you will end up paying a hefty To prevent this from happening to opt out of the overdraft protection. When this happens, if your debit card is not accepted due to insufficient funds you will not be penalized and dumped with a fee. But you cannot opt for overdraft protection in all transactions. The best option is to link your savings and checking accounts and ensure that the checking account has the maximum cash. Even for internal transfer of funds, banks will charge you fees.
  3. Even though using a credit card is an easy option, do not use it as overdraft protection. Not even when the immensely friendly and all-knowing bank representative tries to convince you to link your checking account to the credit card. While it will not be as costly as paying an overdraft fee it is still not cheap by any standards. In this case, you will end up paying several fees instead of one overdraft fee. You will pay:
    • Overdraft protection fee
    • Cash advance fee for the credit card because this transaction will be treated as a cash advance
    • You will also end up paying interest on the cash advance.

A better solution is to use the credit card directly for your purchases.

  1. Savings account must always have minimum balance because the interest rates are really low at 0.01%. But this is not true for all banks, some internet banks offer better interest rate.

Everything is in your hands. With prudence and sense of responsibility, you can avoid all the additional charges banks sneak into your fees all the time. Take the example of Crypto VIP Club, I invested in this trading system only after making sure that it is not a scam like several other systems online. See this to believe that all trading systems are not scams.