⋄ Provident Banking ⋄
Banking can often appear quite intimidating. If you follow these few simple suggestions, you’ll be better prepared to manage your money the provident way!
Use the menu to the left to jump to a specific topic or just scroll down and start reading! And if you have any ideas or suggestions of your own, please send them to us! Thanks & happy banking!
- Banks -
- Don’t leave money in any institution that is not insured by the federal government. All banks and credit unions in the United States can be insured up to the legal limit. Do be aware that there is a limit of the total amount one individual can have insured in each institution. There are some ways around the limit, but for most of us, the insurance is good up to $250,000 per institution (not branch of same institution).
- Only bank at institutions that do NOT charge you maintenance fees! You shouldn’t be paying for a checking account and you should have one that pays at least a little bit of interest.
- Keep your long-term savings in an institution that isn’t terrifically easy for you to access. You’ll be less likely to draw on it for everyday expenses.
- Look for a bank that offers a cash-back award with their no-fee credit card.
- Have your money in more than one bank/credit union. This will allow you to access funds from more than one location should an emergency, disaster or other difficulty arise. After hurricane Katrina, those with all of their funds in locally run banks could not access their money.
- When researching new account options, don’t forget to ask about special packages for seniors, military, employees of companies associated with the bank, direct deposits, etc.
- Credit unions often offer better interest rates on not only savings account, but on loans & processing fees.
- Accounts -
- Review your statements very carefully and immediately report any questionable fees.
- Watch your checking account balance carefully. Overdraft fees, overdraft ‘protection’ (which is just a clever way to say ‘high interest loan’) and other fees associated with messing up on your balance will eat you alive.
- Don’t order new checks from your bank. There are plenty of other sources for free or less expensive checks. Ideally, your bank offers them for free as part of your account.
- Use electronic bill payment instead of writing checks and paying postage.
- Don’t keep too much money in your checking account unless it pays you interest similar to a savings account.
- Use ATMs with due caution. Go to another one if you notice anyone hanging around, it is too dark, you are alone or in an unsafe area.
- Use only free ATMs. Plan your cash needs in advance to avoid paying fees!
- Protect your bank account numbers and other information. Shred old statements–you don’t really need to keep old ones for more than a month. If you use electronic banking, you might opt for no paper statement.
- Credit & Debit -
- Double check your transactions every time!
- Have a good credit rating so that you aren’t paying a yearly fee for a credit card. Your credit card issues institutes a yearly fee? Call them up and tell them you are going to switch. If they won’t waive the fee for you, switch credit card companies.
- Use your debit card very carefully. Most do not offer the same protections as a credit card with regards to fraud. Also, if more than one person is using a debit card from your account (as in you and your spouse), it is easy to lose track of your balance.
- Shred every credit card offer you receive.
- Loans & Mortgages -
- When applying for a mortgage or other loan (which we all know we avoid going into debt except as absolutely and realistically as possible, right?), make certain you carefully read all of the fine print.
- When applying for a loan as in #14, ask up front for a complete run down on ALL fees associated with that loan. Don’t give out your personal information until the loan officer can give you the complete disclosure of all fees associated with the loan, not only from the lender but from civil agencies such as taxes, title fees, insurance, etc.
- Don’t believe what loan officers tell you that you can afford. As everyone should know by now, mortgages and other loans have been issued well above the heads of those taking out the loan! Before signing on that dotted line, wait, think, ponder, pray and ask someone much older and wiser what they think.
- Don’t be pushed or bullied into a loan. Any reputable lender should allow you a cooling off period. Get the paperwork, all of the facts & figures, then walk out for at least a couple of hours (24 is better) to ponder if this is a wise move for YOU! (and your future)