10 Tips to Save Money on Banking and Credit Cards

Saving money is one of those things that is easier said then done. That is why we will post a series of money saving tips in the next couple of days. These ten saving tips are part1.

The other parts can be found here:

So, now that is that out of the way, we can start with the saving tips:

1. Right bank account
Most bank products cost you money. So, you have to make sure that you have the right account for your spending habits. Let’s say that you pay the bank money for the ability to write cheques, but you never write cheques. Why are you still paying for it? Get rid of this product that you never use. This is how you save money by getting rid of products that you don’t use. Take another look at your current accounts and find out which services cost you money. Aren’t there services that you never use or can get for free? I’ll bet there are!

2. Overdraft protection
Are you one of those people that still pay your bills with cheques? If you do, then take a look at the following tip. Many banks charge you money for every returned cheque if your bank balance is negative. This charge is called “bounced check fee.” (The rates may differ per bank, so check it for your account.) Consider adding an overdraft protection to your account. If your checking account should ever go into a negative balance, your overdraft protection will cover the negative amount without incurring excess charges. Most banks charge a small fee for this service, but this fee is much smaller than the bounced check fee.

3. Borrowing Money
You’ve all seen them, those enticing loan ads. But most people don’t read the small print or don’t look at the rates (which can be very high.) Banks make it much too easy to borrow money, so don’t get sucked in. Only borrow money if you really and we mean really have to (for an emergency for instance.) A better thing to do is to save money (emergency fund) before hand.

4. Online Banking
Online banking is not only easy, it also give you control over your finances. You can easily transfer money between checking and savings accounts (interest rates are higher on savings accounts so putting left over money there is wise.) You can automatically pay recurring bills, so you will avoid late fees. You will also use fewer cheques or maybe you don’t need cheques anymore (see tip 1.)

5. ATM’s
Always get cash from your own bank’s ATM’s. Other banks will charge you a fee (upwards of $2) for using their ATM’s. Also, at most grocery stores you can get “cash back” without having to pay a fee (ask for it!)

6. Cash-back credit cards
Using credit cards is never wise, but if you can’t avoid it then at least use a “cash-back” card. You also have to try to pay it off in full every month. Try to find a card that has no annual fee or at least as low as possible. Also try to find a card that has low interest rates (of course it depends on your credit score.) As said before, always try to pay off your debts as soon as possible. (The interest that you save is easy money in your pocket.)

7. Fee waiver
It can be worthwhile to ask for a fee waiver if you have a legitimate excuse for late payments. Just call customer service and ask. Asking is free! Late fees can be high, so always try to avoid them (software such as Quicken or MS Money can help you with that.)

You better save the money than pay it on late fees.

8. Always negotiate
You can always negotiate about the interest rates on your credit card. Every one has seen the ads for lower interest on the same card you already have. Call customer service and ask for the same rate as being offered in the ad. You can always ask, asking is free! In most cases they will lower you existing rate to the rate offered in the ads (especially if you are a long time customer and you always have paid your credit cards bills on time.)

9. Fee cards
If you still have a credit card where you have to pay a fee for it, then get rid of it.
There is no reason for using such cards anymore.

10. Credit Card debt
As said before, it is never wise to use credit cards (using cash is much better.) But if you can’t avoid using them, you better make sure you pay of your debt as soon as possible.

The reason why you should avoid using credit cards is the high interest rates that credit cards carry. With the money you pay as interest, you do a lot other fun things!

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2 Responses to “10 Tips to Save Money on Banking and Credit Cards”

  1. Aaron Wakling on April 7th, 2008 14:45

    Good Blog. I will continue reading it in the future. Nice layout too.

    Aaron Wakling

  2. Tim Ramsey on April 7th, 2008 14:56

    I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey