Using banks: Great ways to make make banks paying you money to use their service
We all have to use banks whether we like it or not. Regardless if we have money, a good job we have to use banks, current account, credit cards, debit cards etc. As you already know I always think about using service and getting paid by it. As the customer I know that I am the great assets for banks. Without customers banks would not exist. Therefore why don’t we get paid if we are so valuable assets. I developed a lit of at list 10 strategies that you can use and be actually paid by banks for their service
- Number one is – and always will be – make sure that interest paid in your account is the best on the market. Even when interests rates are very low there are always banks that offer us some great rates. So if you have any money use them. At the time of writing interest rates are at the historical lows and you can find a number of banks that offer some kind of interest. there are not impressive but they are better than nothing. you will get from 1-5% per year paid on the monthly basis. Anyway don’t go as yet as you have to read other tips and use them in conjunctions with this one.
- Number two: Make sure that you choose the bank with services you actually need. Strategy no. 1 is great but if you don’t get service and products you need you will loos. I was paying from £8 to £12 per month for mobile phone insurance and since we all have mobiles, I paid 4 x this, nearly £40 per month. I also paid breakdown cover from AA or RAC at around £120 per year so I was looking for bank account that would offer me these services included in the banking service. And guess what, I did find it. Nation Wide bank had the Current account with a few nice products: mobile phones insurance, travel insurance, breakdown cover and some others for a fee of £10 per year. On the top of that they pay 5% on the balance up to £2500. This simply means that for the £120 per year I have all my products for which I paid: £600 per year. On the top Banks pay me interest on the monthly basis, which is about £8 so the actual fee is nearly paid off. Do it only when you need these services
- Strategy number three is: NEVER USE OVERDRAFT. There is no need for this as there is so many better ways to fill the gap. Overdraft is always expensive and not controlled well can lead to financial problems.
- Number four: Use credit card with extended interest free purchasing credit. If you pay the minimum and understand that you have to pay it back you can use this strategy to your advantage. The most important rule with this strategy is: Whatever you owe to credit cards company have it on your savings or current bank account. This is not your money!!!. Simply find good accounts, ISA or other SAVE ways to keep money that pays some kind of interest and start earning. Remember: pay minimum payment monthly and make a note of when the free introductory offer ends. It is agoos strategy but risky so if you can not read the small print and keep your notes organised don’t use it.
- Strategy Number five: There is plenty of rewards banks offer for just switching to bank with them. You can easily be paid from £75 – £150 just for switching.
- Number 6. There are a lot of credit card companies that pay you just to open the credit card account and start using them. they pay from £25 so apply for a few credit cards. Make sure you read the small print and pay your bills on time. You can close your credit card a few month later.
- Number 7. Make sure you are aware of all your bank account and credit cards. If you are not using them, close them and cancel. This rule will help you to avoid many problems in the future
- Strategy number 8: Use loans if you need them. There is a lot of loans out there. Make sure that they are better than interest free credit cards. If you have to pay the loan at 3% per year and you need £5000, you might be better off taking the credit card with interest free for purchases for 24 months and if your credit is good you could take up to £2000-£8000 limit card. When you come closer to expiry of you interest free introductory period you can apply for another credit card. So you don’t actually need the loan.
- Strategy number 9: Make sure you maximise your ISA. Using it even for small amounts helps a lot. don’t keep your money in current account if it does not pay
- Strategy number 10: Always, ALways read the small print. You can actually loose a lot of money. Also make sure you have the journal where you make all the notes and criteria for your decisions. You can this post where we will explain the budgeting process in details.