Using Bank Accounts Sensibly and Save on Charges

Added: (Mon Mar 15 2010)

Pressbox (Press Release) - Australian homes pay more than British homes or American homes in terms of charges and fees on bank accounts. Reduce the amount you pay as charges for bank accounts by following these tips.
The first aspect of using bank account wisely is the choice of the bank that you make. While there may be various bank accounts that seem to offer higher interest on your savings, there is always a catch that is likely to spring up in the form of the fine print.


The Australian Bank Fee Survey 2009 indicated that Australian homes pay about 22 percent more fee on bank accounts as compared to British households and 11 percent higher than American ones. The numbers add up about 200 Australian dollars that Australians pay as fees and charges on bank accounts.


It is therefore important that bank accounts should be used wisely and judiciously so that minimal charges and fees are levied on bank accounts and transactions. Being aware of the exact fee structure is the first step towards reducing this amount. Some tips that you can use to reduce the bank account charges are mentioned below.


- Take some time off and actually read the fine print that is provided when you open bank accounts. This fine print will help you understand the exact nature of the charges that will be levied later when you start interacting with the bank.

- Avoid transitions that are made over the counter. Since they involve personnel, they generally attract a higher charge in most bank accounts. Use other cheaper transaction methods like phone banking or Internet banking.

- Be aware of the minimum balance limits that are part of each of the bank accounts that you hold. A certain charge is generally debited when your minimum balance in bank accounts goes below the agreed amount.

- The use of foreign ATM machines also attracts a charge in most bank accounts.

While the above are a few tips on saving monies on charges in bank accounts, a thorough reading of the fine print of bank accounts is the best option.
Mel writes about bank accounts among other finance related topics.