Inside, there is the extract of yours Bank account, the same one you didn’t consider via email. Since you are holding it, check it out. An account is to open an email, an account is to read something that you still have in your hand …
And here the surprises begin. How come that cost for the withdrawal?
Ah, yes … it was less than 100 euros. And the credit card? 10% of costs? Are they stupid ??? But wasn’t it free ??? But I’ve had it for 3 years. Maybe the free is no longer there … And that check for the bricklayer? Why did I have to pay it? But the checks are not free ??? A moment of despair takes you. But what are these costs? Why didn’t I know them?
Then your gaze falls on the last line. “Account management cost: € 3.95 / month”. BUT IT WASN’T FREE ??? You would scream, but hold back. You had other plans for the evening, but one thing has become imperative.
Find out how much you spend on managing your checking account. So take out the old bank statements (you didn’t throw them away, good), and you are going to spend an evening that, you will discover in the end, was not pleasant. You get an unpleasant feeling. And in the end, you ask yourself a question: why do I have to leave the money in the checking account? Who forces me? Here is what you need to do if you are afraid to leave money in your checking account.
Here is what you need to do if you are afraid to leave money in your checking account
First, you should check it out L’Synthetic Cost Indicator (ISC) which is communicated in the periodic year-end information. It offers an overall view of the total account management cost, including all expenses and commissions that would be charged to a typical customer during the year. Expenses and commissions net of interest and commissions on any current account overdrafts. But the ISC is not enough to have a clear idea about the costs of a checking account.
So here are some tips to avoid seeing management costs rise.
- Read the contract carefully making sure that there are no clauses for which the management of your current account could become excessively onerous;
- The current account appears to have important costs especially for those who carry out many operations, or for those who have had an active account for a long time with the same bank;
- Very often the cost increases, for example, the ATM, checkbook or credit card. Check these expense items carefully on your bank statement;
- Have your documents sent to your bank account only in electronic format. Not by mail, because the latter type of shipment has a cost that is often “hidden” which will be charged to you;
- Some banks have introduced a commission for each withdrawal at the counter. In this case, withdraw at the ATM. Operations are best done online. For example, do not ask for the bank statement and the movement list at the counter. Also wire transfers via the internet;
Once all this is done, you realize that the money on the current account not only makes you nothing, but it also costs you. Ah, and then there is inflation. Inflation? Yes, that strange thing casually that economic commentator is talking about on television. That thing that eats the money you have in the bank every year without you knowing it, little by little …
You are not prone to panic, but we understand that it can hurt you. Tranquilli / e. There are solutions to the problem.
- As soon as you receive the salary money, withdraw it via ATM as much as you can daily;
- Invest 1/10 in a pension fund;
- Invest 1/10 in an inflation-indexed CAP (Capital Accumulation Plan);
- Use the rest for your current expenses;
If there is something left over, repeat steps 2 and 3, preferably for point 2. The money on the current account costs a lot. And you must defend yourself against inflation. Think about it, but seriously.