5 Things to remember while opening a Bank Account

Different banks have different rules and regulations to guide their customers. Some banks charge you a higher interest on credit card transactions. At the same time, some provide you with more interest in savings accounts. People tend to go to the nearest bank and open their savings account.

Although you must consider some tips that would help you pay extra bank charges, we have brought you some simple tricks that will help you choose the best savings bank account for you and maximize your interest.

5 Amazing tricks that will help you manage your bank account proficiently

Banks have their credit bureau: Chex Systems

People generally remain familiar with traditional credit bureaus and credit scores. Credit scores indicate your ability to pay back the borrowed amount. The credit bureau is responsible for collecting and analyzing data related to a person’s transactions made on credit. But people are not aware that the bank has a credit bureau to check bank accounts and account holders. 

Most banks review your Chex Systems record whenever you open a new bank account. It would help if you avoided the blocklists, which consist of account holders who don’t pay an overdraft fee or bounce many cheques. To avoid this situation, you need to make sure that you make timely payments of annoying bank fees. Further, you also have the right to demand your Chex System report for free. 

Linking your credit card as overdraft protection could be costly

Generally, most banks ask for your permission to link your credit card to your checking bank account for overdraft protection. Although, this can be the cheaper method than paying a $35 bill as an overdraft fee. Still, it can prove to be expensive for you to borrow money this way.

Firstly, your bank would charge 10-12% as overdraft protection charges. Secondly, most linked credit cards treat this type of transaction as a cash advance, and you get forced to pay a cash advance charge that is around 3%. Further, an interest rate of more than 20% will be charged immediately as the cash advance rate. 

You can always prefer using your credit for short-term loans to prevent yourself from these extravagant charges. Most banks offer a grace period of 25 days on credit card payments without charging any interest. 

ATM fees can be more expensive than you might think

Your bank charges you for availing of the ATM facility. No, it is not about the charges you pay annually for your debit card. ATM fee gets deducted every time you swipe your debit card at an ATM. 

These charges are likely to double when you prefer using another bank’s ATM facilities other than your bank’s ATM. Your bank will charge you for using the ATM facility, and the bank that owns the ATM will charge you separately. Both the charges will add up quickly. 

You can avoid these charges if you prefer a bank that has convenient ATM branches near your home and work. In a case where you don’t have your bank’s ATM facilities nearby, consider getting cash back at a drugstore or grocery store rather than using another bank’s ATM. Additionally, the Bank of Internet provides you with unlimited domestic ATM reimbursement. 

Complaining to the authorities about unresolved issues

There can be situations where your bank does not respond to your queries and disputes. In such a scenario, one would prefer to complain about the conflict to the bank manager. Have you ever wondered to whom to complain even if the bank manager does not provide you with a solution? 

The right way is to complain online to the CFPB. It is one of the fastest and most effective ways to resolve disputes with your bank. Banks are likely to pay close attention to complaints that are referred via the CFPB channel. Additionally, you can help CFPB determine any systematic issues at a particular bank. Many people would be facing the same problem, and you can help CFPB discover any significant issues at the bank. 

Check for mobile banking app reviews

Technology has completely revolutionized the process of banking. Bank branches are now converting into mobile banking apps. Mobile banking apps have become fast, such as depositing cheques, paying bills, transferring funds, view statements, and dispute transactions. It is crucial to check for reviews on Google and iTunes to see the quality of a particular bank’s mobile banking system and make the final decision based on the response. 

Conclusion

Some simple things can save you from unnecessary problems and extra charges that other banks may levy on you. While choosing a bank, you must read the terms and conditions carefully. You must try not to link your credit card as overdraft protection, avoid unnecessary ATM transactions and make use of online payments wherever possible. 

We hope that this detailed guide will help you learn essential things about banks and choosing the proper savings account for you. For more information about banking, technology, and related blogs, please stay connected with us.


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