Have you ever stopped to think whether you are truly getting enough from your bank?
We use our bank every day to pay for our morning coffee and our weekly shopping. We transfer money to our friends using our banks when they need some financial support. We even bet our future on our banks and trust that our treasured retirement funds are safe.
What do we get in return?
Transfer fees, low-interest rates and a need to juggle multiple cards and pin numbers at once. Banks just aren’t doing enough to support you and are causing more stress in the process. Here’s how:
Pesky bank charges
Normally, standard bank accounts don’t come with any monthly or annual fees that you will be expected to pay. Instead, banks make their money through foreign exchange transfer fees and overdraft charges.
Banks can sometimes charge exchange fees of up to 3% if you use your debit card to withdraw foreign currency from cash machines when you are in another country. Currency conversion fees are also applied and are extended to both payments and withdrawals.
Overdraft fees occur when you borrow additional money from your bank account (either pre-arranged or not) after going below £0 in your account. With some banks, you could potentially be paying 15–20% per year in fees, whilst other banks may charge you a daily, weekly or monthly fee*
No overview of your accounts
Previously customers would usually own both a current account for their daily transactions and a savings account to store money for special occasions. Now that people are becoming more financially savvy, we are starting to look at alternative ways of making the most of our money.
On top of a savings and current account, people may own investment accounts, stocks and shares and even an ISA account. Balancing all of these accounts can be difficult and frustrating to keep track when you need to bounce between them to see what’s going on.
Managing finances in your daily life
Let’s face it, life can get really busy sometimes and setting up a solid budget that we can stick to can become difficult, especially when you need to add tracking all the little daily transactions we make on top. Without a proper budget, it can become really easy to overspend and land yourself into debt.
With this said, banks really should be doing more to help you manage your finances in your everyday life.
Luckily there are other account alternatives that share the benefits of larger traditional banks, yet provide additional solutions that can also help you in your daily life.
** Disclaimer: The information summarised here does not constitute as financial advice or other professional advice and is general in nature. It does not take into account your specific circumstances and should not be acted on without a full understanding of your current situation and future goals and objectives.
Sources:
https://www.moneysupermarket.com/money-made-easy/current-account-fees-explained/
