For many working individuals, having multiple bank accounts helps them organize their finances better. For example, some would say that it’s easier to save up or allocate finances to monthly recurring bills this way. Of course, banks offer different types of benefits for various account purposes, so opening more than just one account isn’t the problem, obviously.
However, managing these accounts is the hard part. In this post, we will share some tips on how you can better manage your funds if you have multiple bank accounts. Continue to read below…
Got Several Bank Accounts? Consider These 4 Tips
The only thing we can do in this case is to clean up our act and to do better where we fail.
Be sure to take note of these four easy-to-do tips to get your fund management on the right track:
- Determine the funds that you only need to keep.
As mentioned above, creating a bank account for several goals isn’t necessarily a wrong thing. However, the question is – do you really need to set aside a separate fund for each?
In this vein, it’s advisable to open accounts for funds you only need. Ideally, you need to have a Savings Account that will cover home and family needs and an Emergency Fund since these two are the basic ones that you need. Having a checking account could be useful as well, especially if you have lenders who prefer checks as a mode of payment. Otherwise, getting one is no longer advised.
For those who have an existing home loan with a bank, which is set to Automatic Debit Arrangement, having a separate bank account for this may be necessary. However, before doing so, be sure to ask your payment options if you don’t like to open an account.
Generally speaking, keeping only the bank accounts that you have a specific use for is the main goal here.
- Choose the right bank for you.
Ideally, we go for a bank that offers the most convenience for us. This will make fund transfer between accounts so much easier since they’re both enrolled under one bank.
So now, the more important question is: “Does your bank meet your needs at affordable rates?”
The only way to find out is to check various banks and evaluate their accounts facility. And for those working overseas, it is highly advisable to choose banks with overseas branches as well.
Remember to ask about the interest rate earned, minimum maintaining balance, penalty charges, and perks for being an OFW. The government imposes taxes, so be sure to look out for that, as well.
Spreading your funds in multiple banks allow each account to benefit from different perks. Moreover, the PDIC has set a PHP 500,000 maximum coverage per depositor in case the bank goes bankrupt, which may or may not happen. However, if the features are negligible that you can’t tell the difference, then you can just work with one or two banks, at the very least.
- Maximize online banking.
Nowadays, management in all forms can be optimized through the use of technology, and banking is no exemption.
Through online banking, you get to check your balance, transfer cash from one account to another, and make payments. You will be able to see every transaction made when you do online banking, as well.
This is especially useful for those working overseas because it will make it easier and more convenient for you to see what account needs to be topped up.
- Always deposit your funds accordingly.
Now that you have set your sights on which bank/s to go to, it’s important for you to make it a habit to deposit money on your funds accordingly. Even if you could transfer money online, the goal of having multiple accounts is to enable you to budget and allocate your expenses accordingly.
In all these, remember to stick to your goal and to act on your plans accordingly. After all, your money won’t grow on its own. It’s still up to you to use it accordingly and to turn your financial goals into a reality.
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