Smarter banking can save you money by avoiding fines
With many banks, you are able to subscribe to a text service notification which alerts you when you reach a certain threshold in your balance, e.g. if you want to be notified that you’re balance is now £1000 overdrawn and you don’t want to risk paying any fees because you are now reaching your £1250 limit. Once you get your alert, you can quickly top up your account. Some banks, such as HSBC, also give you the chance to get back within your limit ‘on the same day’ if you have gone over, without having to pay any fines.
Alerts are useful if you have a busy schedule and you don’t always remember to check your bank balance online, especially if you do paperless banking and don’t receive bank statements through the post.
Another tip is to have all your regular payments including household bills set up as direct debits, saving you time paying individual bills. Once you know your regular monthly outcomes, input these into your personal calendar, e.g. phone calendar, which you look at everyday. For example, you may have all your direct debits set up for the 1st day of the month. On the last day of the month, you ensure you have enough funds in your account to cover the direct debits, and avoid going overdrawn. You may have your mortgage payment due on another regular date, for which again you would be reminded in advance with the amount visible in your calendar.
If you haven’t before, it’s worth exploring online banking, as this allows you to transfer funds between current accounts and savings accounts. You are able to view and track your balances any day of the month and not just when your statement comes through. Many smart phones features mobile banking apps that allow you to view your account balances.
It’s worth opening an online savings account which you have instant access to in emergencies, e.g. to top up your account before it gets overdrawn.