Stop throwing your money away!

Banks are a great way to save your money, and even, on occasion, make more while your money is sitting there.  I’m a big fan of some of the high-interest yielding accounts available to the average consumer today, and can confidently say that we have made hundreds of dollars on our money in the past few years, simply by using these accounts and gaining interest on our money.  More on specific interest gaining strategies, in weeks to come!

One thing that astounded me, while working for the banking industry, however, was the amount of money that people threw away.  Through overdraft charges, and general account fees, I watched as HUNDREDS of dollars were wasted within their accounts year after year.  Here’s what I learned, and hopefully, if you find yourself in this same money-wasting situation, these 3 tips can help you stop throwing your money away!

1.    FREE Checking Account – A free checking account should mean what it says: “FREE.”  That means, that when you’re looking for an account to place your money in, make sure that there aren’t any start-up costs, or other fees.  Pay special attention to the number of transactions you’re allowed with your account.  (Hopefully, unlimited!).  Also pay attention to any minimum balance required of your account.  It’s your checking account, so remove the pressure of keeping money there…. make sure that there is a ZERO minimum balance.

2.   Watch closely at your “Savings” account specifics.  If there is a minimum balance required (and most savings accounts do have one), be sure it’s one you can maintain.  Otherwise, don’t have a savings account.  I think a lot of people like to have a separate account that they can call their “Savings Account”, but unfortunately if the bank is steadily removing $5.00 a month from your account because you’re not maintaining the “$300 minimum”, it is no longer helping you “save” but instead “loose” money.  An option for you (if you find yourself in this situation) is to open 2 separate FREE checking accounts.  Then, in your mind, hold one as a “savings” which you do not pull money out of unless it is an emergency but instead try to steadily put money into, and use the other as your average “Checking” account.  Make sure to talk to your bank to ask about this option.

3.   Interest rate shopping – Interest rates are poor, at best, right now.  HOWEVER…keep shopping!  Although you’re probably not going to find that account holding a 10% APY, if you look hard enough you may be surprised at what is available.  CD’s probably aren’t your wisest options right now, because the interest rates are not really competitive considering the amount of time your money is locked up, however there are some options available to you that will earn you some money, while we all wait for the market to rebound.  Just be sure to shop around, and don’t be afraid to make a few phone calls.