Current Account Fees: 9 Steps To Successfully Minimize Them
Avoid nasty surprises at the end of each quarter when your bank statement arrives. Make sure that you are not overpaying your current account fees.
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Although none of the banks provide free banking services, there are various methods to minimize the fee you pay to your bank. There are also cases where you can avoid paying your current account fees altogether.
Your journey can start even before looking at what your current fees are. Instead, first decide on a budget for each quarter. After you’ve taken all of your expenses into the account, make a budget for your business.
The budget can be weekly, bi-weekly, or monthly. Think about everything from payments to freelancers to establishment costs and marketing budgets so that you never have to worry about running out of funds.
Time management is the key here, and it becomes simpler with the right planning.
The 9 Steps to Help You Avoid Your Current Account Fees
Follow these simple steps and reduce your current account fees the smart way.
1. Avoid ATM:
Nowadays, one of the highest charges made by a bank is against ATM withdrawal fees. With the latest amendment in the 2016 budget, a 12 % stamp duty has been levied by the government on ATM withdrawals, limiting it to €5 per year, which means that the government will charge you 12% more than what your bank already charges you for using the ATM.
Cash withdrawal cannot be avoided entirely. The best method to prevent this additional charge of withdrawal fees is to make purchases where you can get cashbacks each time you shop.
2. Go Contactless:
Various banks charge the very minimum or sometimes nothing at all when you pay using contactless payment services. It is a far cheaper alternative and is much easier to access. You have to tap, and your payment will be made.
Mobile payment services like Apple pay and Google pay are considered contactless services entirely free of charge. No additional charges are levied against any payments or transactions.
3. Shift To Online Banking
The faster, easier, and cheaper alternative to making transactions is by doing it online through an app or banking services. Online bank transactions are cheaper and sometimes even free of cost, saving you from additional charges that might have been implemented at traditional banks.
4. Keeping Cheques In The Past
Cheques have steadily started becoming obsolete, so it’s best to keep them in the past. This will help you avoid any additional charges or government stamp duties against cheques. Instead, online banking or direct debit can be used to transfer money.
5. Looking Towards Nontraditional Banks
Online banks are a great alternative to traditional ones. The interest rate is much higher than the traditional banks, and they charge minimal or no fees from their customers. They have zero annual charges, transaction fees, or ATM withdrawal fees.
These banks are entirely online and have no additional branches. Not having a physical branch leads to a lot of savings in terms of maintenance and staff expenses. They support banking through mobile apps or the internet, where you can conduct banking services within minutes.
6. Learn More About Your Bank’s Fee Exemption Conditions
There are always ways to avoid or reduce fees on your transactions. Using contactless services instead of the chip and pin one helps you avoid unnecessary charges. A minimum bank balance is not a compulsion. Additional charges are exempted if a specific sum is kept in an account at the end of the month.
7. Follow Savings Account Rules For Your Current Account
By keeping a certain amount of money deposited in your bank account, most banks waive any additional charges against it. Since the savings account interests are shallow, it might be beneficial to treat your current account as a savings one. Even though you might not be able to earn as much interest, you will still be able to save a lot of money as transaction fees.
8. Say No To Referral Fees
If you have cheques, direct debit, or standing orders against your account, your bank will charge you an exceptionally high referral fee. This fee reflects poorly not only on your pocket but also on your credit score. It is best to avoid accumulating such charges when there is an insufficient balance in your account. Ensure that a certain amount of money is left in your account at the end of every month.
9. Switch Banks
If your bank implements excessive charges against your account that do not seem justified, the best option is to switch your bank. There are multiple banks in the market, so choose what fits you best according to your requirements.
Minimizing Your Current Account Fees the Right Way
Compare different features and charges of competitive banks, then choose the one which seems most reasonable to you. Select a bank that helps you control your expenses and cash flow. A sophisticated banking system gives you a clear picture of all your recent transaction and allows you to pay your bills online without additional charges.
Saving money becomes easier when you have some goal to look forward to. For example, if you know you’re saving money for a new marketing campaign you want to kick off, you will be keener to do it. Give yourself a new goal and it would become easier to manage your finances.
Actively managing your finances will help you be aware of the market and the banking conditions, check your regular transaction and bank charges. Considering your financial goals, many banks have features of limiting your monthly spending budget. This can help you keep a check on your outstanding balance and avoid any referral or rejection fees.
