3 smart chequing account moves to make in 2022
Your checking account needs your attention this year.
- The right checking account might reward you with a nice bonus for opening an account.
- You can also take advantage of the features of your existing account.
Your checking account is something you might not think about much most of the time. Of course, it’s where your paychecks land and it’s your source of bill-paying activity. But how often do you really spend time contemplating checking account matters?
If the answer is “rarely” or “never,” you might want to consider changing your approach. Here are three key current account moves that could really help you this year.
1. See if it pays to open a new account
Nowadays, savings accounts earn very little interest. It might be beneficial to transfer money from your savings account to a new checking account if the latter offers a decently sized bonus for opening a new account.
Let’s say there is an offer for a $200 bonus for opening a new checking account with a minimum balance of $10,000. If you have $10,000 in savings, you might want to consider using it to fund your new checking account.
To be clear, if that $10,000 is your emergency fund, you’ll still want to treat it as savings. But just because it’s not in an actual savings account doesn’t mean you have to spend it. And the $200 you earn in bonuses could be way more than you’ll earn in interest on that sum this year.
2. Make sure your account has a cushion
You probably use your checking account to pay bills, and when you withdraw money from ATMs, it probably comes out of your checking account. But it’s easy to lose track of how much you spend from time to time. Or, you may not remember that you recently made a cash withdrawal of $300, so you end up taking another one and it’s practically depleting your account.
Reducing your checking account balance to $0 is obviously a problem. Although some banks allow transactions when you don’t have the cash on hand to complete them, this will often incur overdraft fees for you.
That’s why it’s a good idea to fill up your checking account a bit. Try cutting back on your expenses for a few months to give yourself a little cushion, even if it’s only about $200 more. Having that extra cash in your account could save you a world of hassle and stress.
3. Set up an automatic transfer
If you have savings goals you’re trying to meet, waiting until the end of the month to transfer money from checks to savings may not be the best strategy. If you go this route, you risk a scenario where you’ve spent your entire salary, leaving you with no money to transfer.
A better bet? Set up an automatic transfer from your checking account to your savings so that the money is transferred at the beginning of the month, before you can spend it. This could actually force you to improve your savings, which could benefit you in a number of ways.
You may have different money-related goals and objectives for 2022. As you tackle these, take the time to pay attention to current account matters. You may find that opening a new account, topping up an existing one, and putting your savings on autopilot does wonders for your personal financial situation.
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