Your bank account can be a source of great financial freedom, allowing you to conduct business and pay bills in any number of ways. But it also comes with great responsibility. If you are not careful, you can end up owing quite a bit of money to your bank because of late fees, overdraft fees and the like.
Here are some ways to make sure you do not incur these fees and to ensure you always have a positive balance.
Keep Tabs on Your Account
It is easier than it has ever been to keep up with what is going on it your account. Not that long ago, everyone had to keep a little ledger, usually in their check book. This ledger was where they would record all the money they put into their bank accounts and all the money they took out so they knew where their money was going each month. It let them tally up their account without having to consult the bank directly.
Now with online banking, this process is much easier and simpler. All you have to do is long into your account on a computer, tablet or even your phone to see what your bank account balance is. You can see at a glance what is coming in and what is going out. You should log in at least once a week to check your account and to make sure you are not taking out r spending more than you have.
This always helps you to maintain a running total in your heads so you know what your budget is like. Just be careful of any withdrawals and payments that take a few days to process, as these may not show up immediately in your account.
Know What Payments Are Being Made
A lot of bill payments are automated these days. That makes it convenient for you, since you don’t have to keep up with them and remember to pay them on time. But while this can keep you from incurring late fees with your creditors, it can also cause you to forget about bills that are going to come out of your bank account.
Because you aren’t necessarily paying attention to all these payments, you may forget about them from time time and not expect them to be taken out of your account. To help avoid this problem, you should keep a running tab of all payments made each month and post it somewhere that you will notice it. Be sure to add any you have forgotten as you recall them so there is no chance that you will be without the money to pay your bills on time.
If you’re a saver, you can avoid some of the fees that come with trying to access your money by setting up the right kinds of account. Most of the better instant access savings accounts will allow you to get your money for a low fee, with some being free. Make sure you have the right kind of account and you’ll save on fees in the long term.
Talk to Your Bank
Just because there is a money shortage on your end, that doesn’t mean that you have to suffer from late fees or overdraft fees. You can simply talk to your bank or your creditors to work something out. If you have been making payments on time and you have been a loyal bank customer, the bank is likely to be understanding when you have a temporary money shortage. Just let them now before it happens that here will be a problem. Your bank may be able to freeze the account so the payment is not taken out and you don’t incur any fees on their end. Alternatively, talk to your creditors and see if you can delay a payment by a few days until you have the money in your bank account. Most companies will be understanding so long as you make an effort to let them know ahead of time.
