The changing times of personal finances, due to demographic changes and technology has meant that more consumers are jugging their finances in different ways. The days of going to your local high street bank and talking to the bank manager about everything have faded away to give way to new innovative online lenders that are changing how people borrow money. If you are one of the millions of Brits who are now choosing loans from alternative lenders, you still need a bank account to manage your loans and making repayments. In this report, you are going to learn the tips and tricks that you need to know to manage several bank accounts at once.
1) Create a planner for your bank accounts
One of the things you need to learn how to do is become organised when it comes to multiple bank accounts. You could do this on paper or on your laptop. The benefits of managing your bank accounts through a spreadsheet on your computer include that you can access them in a more organised manner and it is easier to make edits to your spreadsheet. Writing down where you stand with your bank accounts is also good because you can take the notebook with you anywhere and everywhere you go.
2) Choose accounts without any fees
To keep your money, you need to avoid bank accounts that have big fees attached to them. Banks have understood that customers want more from financial services so they have created new bank accounts that have concierge services, for example. These are meant to tempt you into spending more money with them. If you are trying to focus on saving, choose accounts that have no ledger fees or minimal ledger fees.
3) Open an account for savings
Saving money is hard, and it is not made any easier by the consumer driven culture that we live in. To get yourself on the right track, you can open a savings account with your local bank. Choose a bank that has good rates of interest so that the money you earn from your savings can be added to your general savings goal. This account can be your general savings account, so it is important not to dip into it. You should also consider having a separate account for an emergency fund in case problems happen in your life and you need to access liquid funds to pay for those problems.
4) Open an account to buy a house
Saving for a house requires a different type of focus and determination. You are going to be asked to go out with friends, you will want to go on holiday, and you may also want to buy the latest car that you see coming out. All of these are financial distractions if you are trying to buy a home. You will need serious willpower to buy a house and one of the ways to get that done is by having a separate bank account to put your savings into for your deposit. One trick you can use is by having this account at a bank that does not have any branches near where you live. This will make you avoid any temptation you may have to withdraw the money.
5) Decide if you want to switch from your current account
One of the biggest banks in the UK lost almost 100,000 customers who switched their current account from them to a rival, according to an article in This is Money. Switching accounts has become extremely popular as more people look for better deals when it comes to managing their money. If you are unhappy with your current account, consider switching only if the benefits outweigh the hassle of opening a new account. As switching becomes more common, there will be changes in the types of bank accounts being offered by banks. There will be more accounts that have offers and incentives to entice current customers to stay with their bank, in addition to trying to attract other people to leave their current banks as well.
6) Have fixed savings accounts
It’s one thing to have a general savings account that you can access any time. It’s another thing to have a bond or a savings account that cannot be touched or you will have penalties. These accounts suit consumers who are not as disciplined when it comes to managing money but even if you are good with your finances, these accounts are also useful because you can get a better return on your money by using them. Make sure you know the interest rates of all of your savings accounts.
7) Manage your accounts online
The growth of online banking in the UK has changed fundamentally how people interact with their money. The British Bankers Association (BBA) found that customers in the UK use online banking at least 7 billion times in just one year, according to research. This rise of online banking has made it even easier to manage your different bank accounts because all you have to do is log on and then see the health of your accounts online. The BBA also found that there are more than 9 million internet banking logins per day in the UK that are done via smartphones and mobile applications. One of the most important things to do here is keep your password safe and make sure that you log out of your online banking account if you are using a public computer.
Building your personal finance foundation will always require bank accounts. The growth of new technology and new products from banks means that British consumers are now spoiled for choice in terms of the types of accounts that they can now use. Are you ready to get a new bank account? Have a goal in mind if you want to switch or create a brand new savings goal so you can build the future of your personal finances with the right bank account for you.