How to be Smarter with Your Banking

Banking is such a complicated matter that most of us will choose one bank and stick with it for the foreseeable future. There are hundreds of banks to look between, and knowing which one is the best for you is near impossible. It’s no wonder that so many people tend to take a go with the flow approach to banking and don’t bother to look into what’s the most suitable for their needs.

However, getting smarter with your banking is one of the simplest steps towards increasing your wealth. Spending just a small amount of time reviewing your banking options has the potential to massively help your finances in the future.

Here are 5 easy ways to be smarter with your banking:

  1.       Get your head around online banking

Not everyone is the biggest fan of technology, and if you’re a self-proclaimed technophobe, the thought of handling your banking from your mobile phone might fill you with dread. Don’t be put off, though – there are banking apps out there, such as Capital One 360, that can support even the most traditional of customers. Check out this Capital One 360 review for more information.

  1.       Consider a new bank altogether

How long have you been with the same bank for? Longer than you can remember? Chances are, the reasons that enticed you to sign up for an account in the first place are pretty weak compared to some of the offerings that other banks now promote. Find out which banks offer the best deals on interest rates, overdrafts, and any other features that matter to you, and consider making a switch.

  1.       Be aware of direct debits

The very nature of direct debits means that it’s easy to forget all about them – which may mean that you’re unknowingly paying for a product or a service that you no longer even use. Be wary of temporary free subscriptions that automatically sign you up for monthly payments once the free period is over. Look through your direct debits now and cancel anything that’s no longer relevant.

  1.       Work on your credit

Lots of people won’t consider getting a credit card because they don’t want to put themselves at risk of being unable to pay off a balance, but actually, if you feel you’re trustworthy with your money, a credit account can really work in your favour. Making a few small purchases on your credit card, and proving you can pay them off on time, is one of the simplest ways to improve your credit score.

  1.       Keep up your activity – or close your account

Banks can be sneaky with unused accounts, so don’t be surprised if yours is charging you a fee for inactivity. It’s best to close any unused accounts that don’t mean anything to you, or, if you want to keep them, make sure you’re using them at least every couple of months. This might mean adding smaller amounts bit-by-bit to your savings rather than adding bigger chunks every half a year or so.

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