Choosing the right bank
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There are loads of things to consider when choosing the right bank to suit your needs. These days, there are more options, services and accounts than ever before to choose from. It’s sometimes confusing when deciding on where to get started. If you do some research and possibly a little visiting, you will find the right bank that fits your needs and goals.
If you find yourself in tight financial circumstances quite often, then you may want to look at a bank that offers something like a payday loan or a cash advance. These banks can be helpful if you find yourself making late payments on loans or credit cards. They will often help you out of a tight financial situation and help you to avoid late fees and judgments on your credit profile. Make sure you are aware of the terms and conditions and try to make all of your payments on time. It is also important and advisable to make more than the minimum payment required whenever possible to avoid having bad information put on your credit profile.
If you qualify, then overdraft protection is useful to have on a current account. Overdraft protection is normally a line of credit extended to you that can cover bounced checks or overdraws on your account. Overdraft protection gives you the opportunity to draw more money out of an ATM than you actually have in your account. This can be helpful if you are in need, but be careful not to abuse this type of privilege. Even with overdraft protection, you can be penalized with substantial fees every time you delve into your overdraft account.
With some banks the charges go directly on to a credit card. This may seem advantageous, but each overdraft generally comes with a fee and shows up as a cash advance on your credit card. Cash advances from a credit card account aren’t usually calculated at the same yearly percentage rate as a regular purchase. Cash advances from your credit card are more often than not at the highest interest rate available to the credit card company. Keep a close eye on your account. If you know that you are getting very close to emptying your current account, it might be a good idea to use your credit card if possible. This way, you’re only charged the regular Annual Percentage Rate with no extra fees. This can save you from getting deeper in debt than you can handle.
Savings accounts are really useful ways to save money (probably not Rocket Science)! It actually helps your credit rating to have both a current and a savings account. Savings accounts often have stricter guidelines on how often you can withdraw money than current accounts do. This can be beneficial if you are serious about saving. A savings account can also be used as an overdraft account and often without the fees associated with the first few overdraft withdrawals. Be cautious not to deplete your savings and do your best to have regular amounts of money going into savings at set intervals, even if it’s not that much money. A wise option is to have an automatic debit order from your current to your savings account happen on the same day that your salary goes into the bank. This way you don’t ever see the money available in your current account and you don’t make it an option not to save.
The 4 Major South African Banks are:
Have a good look online and visit the banks in your area that are convenient to you.
You’re sure to find a bank that suits your needs and your lifestyle.
