Life is getting pretty expensive and its time to start cutting down on those extra expenses! Why don’t you start with banking?
Published: Tuesday, June 12th 2018
Petrol has gone up. VAT has increased by 1%. We are paying almost R17 for a loaf of bread. Finances are seeming a bit gloomy here in South Africa at the moment. We know that you need as much help as possible to save those extra Rands to get to the end of the month. So, where do you start?Why don't you do an audit of your banking? From 1 July, you can start cutting down on some of those excess charges and payments to cut down the fat and have more money in your account. Here are some useful tips to beat the bank charges and save today.
Get rid of unnecessary fees. You will generally pay more to make deposits and transactions at a branch, you’d pay R33.00 to make account payment at Standard Bank. Make electronic fund transfer (EFT) payments, they are free. It’s also free to sign up for online banking.
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Try only going to your bank’s ATMs. You will always pay more when doing transactions at another bank’s ATMS. An FNB Sales Manager told Compare Guru that their customers can pay over R30.00 per transaction. Inter-bank ATM transactions cost more because your bank and the other bank charge you for the transaction. In some cases, you are charged an additional inter-bank fee. This is the cost of your transaction between the two banks. For example, if you are a Standard Bank customer and you withdraw cash from an FNB ATM, you will be charged Standard Bank fees, FNB fees, and extra fees when FNB charges Standard Bank for the transaction.
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Does your bank account suit your needs? Make sure the account you have is suitable for your needs. Ask yourself these questions: -Is there a better account suited to your income bracket? Should you upgrade or downgrade? -Are you making less transactions than the amount you pay for monthly? Look for an account that offers less so you can save on your monthly premium. -Are you making more transactions than you receive in your monthly premium? Perhaps you need to find an account that offers more transactions that cost less. Are you using all the benefits you pay for? Are you using those air miles, shopping discounts or eBucks? If not, it’s time to pare down.
Sign up for debit orders for your monthly payments. You’ll never have to worry about late payments or a tarnished credit score if you create debit orders for your payments. This makes life a lot easier for you, each month your account will automatically debited by the payments you owe. To make use of this feature, simply contact your creditor and see if they use a debit order method.
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Remove the temptation of a full pay cheque sitting in your account. You can manually create a monthly “payment” from your cheque account into your savings account in online banking. Standard Bank offers the feature of placing a monthly repeat so a portion of your pay cheque will automatically go straight to your savings account each month. You will be able to create a lovely little nest egg by avoiding spending temptation.
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Streamline your debt payments, pay the most expensive debts off first and work your way down. You can save by streamlining the way you pay your debt. The best way to achieve this is to create a list of each debt with their corresponding interest rates. You should pay the most expensive debts off first and work your way down the list. Try avoid all types of bad debt, this includes store cards, personal loans, credit card debt, and overdrafts. If all the different types of debts become overwhelming, you can also consider debt consolidation. This convenient service allows you to take out a loan that places all your debts into one monthly premium set at one interest rate. You pay more in the long run but this will help you simplify your monthly expenses and improve your cash flow. These easy tips can help you save on your bank charges today.