How Internet Banking can Save you Money
In todays financial climate, we are all looking for ways to save ourselves money. Personally, I like to find ways on how to avoid paying for things that to me have no value. One of these such expenses are bank charges.
Years ago, I received a letter from the bank with a first class stamp on it, telling me I was a few pence overdrawn and that I was subsequently being charged.
The exasperation of it! Why did they not help me out by putting the cost of the stamp into my account, bring it into credit and then advise me that should it happen again, I would be charged.
With the finances being so tight at that time, it took me weeks and further charges before my head was again above water.
Historic Financial Disasters
From that point on, my history became one disaster after another, I never remembered when the charges were coming out and so incurred more charges. Charges on Charges, you could make a song about it.
I decided that something had to be done about it, I went to the bank and found out my options. It was suggested that I set up a text messaging service, also, an internet banking account. This 'they' said would help get my finances back on track.
Another option was to open a savings account 'Huh!' This amused me, here I was trying to get out of the charges trap and they said open a savings account. The next brilliant piece of advice was to open a second current account.
I was sure there was logic there somewhere, so I took their advice.
Text Messaging Service
This is a great way to ensure that your account stays in credit. The way it works is - You set an upper limit to your account balance and a lower limit. The bank will then text you to inform you when your account has reached or exceeded the upper limit, and again should your account reach the lower limit set.
This then gives you ample opportunity to have funds in your account to cover any direct debits or standing orders.
My bank, also has the facility that will pay your orders as they come in, regardless if it takes you overdrawn. They will then text you, but, if you fail to ensure that the funds are available by 3.30pm that payment is withdrawn and you will incurr charges.
The beauty of the mobile phone.
Internet Banking was another facility that helped considerably. You will need to register and this can be done by going to your banks website and clicking 'Register online'. It's a simple process and once accepted you will be given a login ID.
You then create two passwords, one for access to the site and a further one to access your account. The first password, you enter as is, whilst the second you only have to input 3 digits or letters randomly. The randomness of these digits are selected by the site. It could be the 4th, 5th or 10th one day, then something completely different the next. So, keep this password memorable.
Once in to your accounts you can view your account, all transactions, up and coming outgoings, you name it, you can view it.
With an online banking system, you control your money. You can set up standing orders, defer standing orders (if you so wish), and move money between accounts.
The most important thing is, you know how much you have at any given point.
Two more Accounts!?
The idea of opening two more accounts baffled me. Opening another current account when the first was in dire problems didn't make sense and as for a saving account ....
The bank advisor talked me through my incomings and outgoings. It was explained that I had more than enough income to cover my outgoings. I couldn't see it, there was never enough and there was always more 'month' than 'money'
In their wisdom, they opened a savings account and set up another standing order to my account to the tune of £10 per week to be transferred across.
Then, the second current account was opened and the remaining income, after the set outgoings were taken into consideration, was sent to it.
Has any of this helped?
My financial situation is now so much better, I know when my account is getting low and can do something about it. Transferring money online is so quick and the charges are null and void.
The savings account that I laughed about is growing great, and surprisingly I feel a lot wealthier than I actually am, purely because that money is there and I know there is something to fall back on in case of emergencies.
By having a living and recreation account ensures that I never exceed my limit and that the bills are paid on time, without late payment charges or any bank charges.
Would I advise anyone to follow these methods? Of course I would.
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