How to choose the right bank account for you?
There was a time when, not so long ago, banks didn’t exist — OK well, they did but they weren’t so popular, or so accessible, to use a better term. Banks mainly existed for the wealthy and the aristocrats who owned property and had lots of money, and they needed someone to manage these properties.
Today, banks have become an essential part of our daily lives. Through their services, they have become part of our daily lifestyle and the backbone of our finances. We don’t only use them for saving, shopping or taking out loans, but we structure our whole life around them. Think about how many times you use your bank’s services on a daily basis: you pay for food, taxis, mobile apps, video streaming, online courses, games, subscriptions and much more- all available at your fingertips, with a simple tap on your screen.
What makes banks great is not only the offering of these versatile services, but rather how customised they are for each and every person: from employees, investors, loan-takers, property owners, SMEs, startups, NGOs, venture capitals, even parents looking to raise a college fund. No matter who you are, there are endless financial options and plans for you to adopt.
All you have to do is choose a bank account that is suitable to your goals and your financial needs. Now what, can we hear you say is the next step you should take? The answer is simple.
There are three golden rules when it comes to banking: convenience and cost for your 20s, stability and features for your 30s, and reviewing your priorities for 40s and above- unless you’re Jack Ma, founder of Alibaba, who’s still taking financial risks at 56.
To cap it off, here are the the factors you need to consider when choosing a bank:
- Your age
- The type of account you need
- Banking fees
- The proximity of the bank’s branches to your residence
- Bank accessibility
- Your lifestyle
- Digital features
You need to open a bank account that fits with your lifestyle and needs. Think about it, your job (whether you’re a freelancer, a real estate agent who works on commission, or a startup founder), the proximity of the bank to your house, the taxes imposed on you, even your age determines what kind of bank you should choose.
But that’s not all. Let’s get into the type of bank accounts you could open:
Salary account
No matter what the nature of your work is, everybody needs a bank account to rely on. With a salary account, you can take advantage of perks, rewards and conveniently receive your salary on a monthly basis. No minimum balance and transfer fees are required.
Everyday account
For flexible and day-to-day banking, a current account is a must for anyone looking to conveniently access their money, pay bills, or issue checks. In return, you receive the magic card you’ve been looking for: the debit card. This card allows you to shop online and offline as well as withdraw money from any ATM.
Savings account
Get an early start on your future and start saving. A savings account offers benefits and rewards that help you kick-start your journey for the future- after all, saving is an art, really. We’ll help you out by giving you 1% on the whole amount in your account every 6 months!
Banking for anyone
With these bank accounts to choose from, the same applies for university students opening their first account or to senior employees who need a retirement plan. Indeed, a bank account is very much like a financial agreement customized to fit the exact needs of the client.
For example, a startup founder will probably need a bank that offers flexible loans and offer non-financial services. A real estate agent, on the other hand, might not mind a bank that offers high-interest loans as long as he gets to buy more property and scale.
A bank that is digital
Now for the last point: digital features. Having digital features automatically means you can digitise all other options. These include the ability to transfer money, pay bills, check balances and open term deposits.
You can open a digital account with ZERO fees straight through your mobile after downloading the app within minutes. After you’re done, your debit card will be delivered straight to your doorstep and you won’t need to step foot into a branch ever again. The process is not only simple, but it also helps you keep track of all your finances.
Not so long ago, we talked about creating an essentials-only budget that actually work to help you optimise your saving process and plan for the future. It’s time for you to check it out now and plan your savings ahead for your future.
