The do’s and don’ts every person needs to know when it comes to their money. Finances can be very stressful, especially when it seems there isn’t enough money, but these few pointers should help organise some things when it comes to finances and hopefully give your income a small boost.
DO
Check whether the account is covered by the FCA, you never want to be in a situation where your money isn’t covered in the event of the bank closing. It may cause serious financial problems and you are not guaranteed to get any money back.
DON’T
Be put off by an account because you haven’t heard of the provider, as long as it is covered by the FCA everything is safe. If it offers you a good deal, investigate it in a bit more detail and consider opening it.
DO
Spend some time looking at different accounts. Just like everything else, it’s never a good idea to plump for the first account that comes up, do an in-depth search and find the one that suits you.
DON’T
Hold more than £80,000 in one account or multiple accounts under the same group. Always check which bank they ultimately belong to because if something goes wrong you are only insured up to £80,000
DO
Take advantage of some banks’ referral offers if you have family who bank with them. You could get yourself £100 for just joining and you don’t have to stay with them for more than a year. It’s an easy way to grab more cash and most accounts can be opened online.
DON’T
Have money in accounts over the maximum amount they give interest to, even if you put that excess in an account which gives you 0.1%, it is slightly better than nothing. There is no point having money in accounts that aren’t giving you interest.
DO
A yearly review of all the direct debits leaving your account, you can save yourself £100’s by finding money leaving your account on a monthly basis for subscriptions you don’t need anymore.
DON’T
Choose a bank just because there is a branch near you. Most transactions can be done using internet/online banking and you will rarely go into the bank. Most ATM’s accept any bank’s card so its equally easy to withdraw money. It is unlikely that bank will have the best deal for you.
DO
Assess your finances, if you know you regularly go into overdraft, choose a bank which offers a high interest free overdraft. If you know you normally have a lot of money, find an account which pays high interest. If you have money to spare, consider putting it into a fixed rate account as they can offer more interest than easy access accounts.
