How to beat the bank
It’s no secret that Aussie banks are some of our biggest and richest companies. And they’re building their profits with your cash! The banks seem to have a never-ending array of ways to make more cash out of us. They’re constantly charging us more for the privilege of storing our own money. If this doesn’t seem fair – you’re right, it’s not! But instead of getting mad with your bank, get even by staying a step ahead and beat the bank.
Here’s 5 ways you can beat the bank at their own game
Always remember – everything is negotiable
- You know the saying. “If you don’t ask, you don’t get”. This even applies to your bank.
- Banking is a competitive industry, and your bank will work hard to keep your business.
- You’ll be surprised how quickly all the little fees, charges and interest rates add up.
- Your everyday account keeping and transaction fees, your credit card interest rate, annual fee and rewards program fee, your mortgage interest rate. It’s a long list.
- Ask for a discount on them all. It helps to do a little research first, so you’re armed with information about the better rates and deal you know you could get elsewhere.
- If you ask the bank for a better deal and they say no….then walk away.
- Changing banks is not as tricky as you might think.
- Use comparison websites like Finder or Mozo to get up to speed on what the best options are for your circumstances.
- You can save yourself a stack of cash by simply taking your business away from a bank who won’t negotiate to keep your business.
It’s in your interest not to pay interest
- Don’t let the bank get their hands on any more of your cash than you have to!
- Accounts like credit cards and car loans typically charge really high interest rates, so try to avoid these as much as possible.
- If you do have a credit card, use it sparingly and always try to pay the balance in full each month, so that you never pay any interest charges.
- If you’ve got a mortgage, don’t set and forget. Keep a constant eye on the interest rate you’re paying and if it’s more than what’s being offered in the market, ask for a discount.
But make sure you earn interest
- While you want to minimise any interest you pay to the banks, you want to maximise any interest you earn from them.
- Don’t have several small amounts sitting in different bank accounts, each with its own fees.
- Try to pull your cash together into one account that earns as much in interest and bonus rates as possible.
Say no to fees
- Why should you have to pay your bank to access your own cash?
- Close any unnecessary accounts so that you’re not paying extra bank fees.
- Make sure you have the right type of account to suit your needs.
- Then follow our guide to how you can check your bank statements and save.
- And don’t waste your cash on ATM fees…it’s just one of our 5 things to stop paying for, right now!