You’ve recently opened a zero balance savings account and you’re keen to make use from its versatility. Although you might want to allow it manage the everyday expenses however, you can make the account even more efficient for you.
With just a few steps, you’ll be able to not only save but also increase your account balance over time. This guide will guide you through some of the best ways to increase your savings when you have an account that has no balance. So, let’s get started.
Select the appropriate bank
There are many different Zero-balance accounts for savings that are created equal. Check out different banks to find one with the most benefits, such as higher rates of interest and cashback, as well as low charges.
In this way, you’ll get competitive rates as well as helpful features that meet your requirements.
Save money by automating your spending
This is an excellent way to guarantee consistent savings. Make a regular transfers from your main account in your zero balance account. This can be scheduled weekly or monthly, based on the flow of cash.
For instance, you could plan the automatic transfer to Rs5,000 on per payday. This method makes saving effortless and stops you from missing the deposit due to a lack of memory.
Monitor the limit of transactions
Zero-balance accounts usually have restrictions on the amount of free transactions. This applies to ATM withdrawals and online transfers as well as other transactions. To avoid fees that are excessive make sure you keep track of the frequency of your transactions.
For instance, if your account can allow the account to allow five ATM withdrawals each month, you should plan your cash withdrawals to remain within the limits. A monthly review of your statement will aid you in understanding and avoiding these charges.
Utilise digital banking
Zero-balance accounts provide online banking, making managing your account much simpler. Benefit from this option through setting up your bill payment as well as tracking your balance and transferring funds directly via your mobile.
For instance, if you have utility bills, you can automate the payment process using the application to reduce late fees and make it easier to pay your bills on time.
Account perks that you can leverage
A lot of zero balance accounts provide benefits such as cashback, discounts for dining out or even insurance coverage. Be aware of these advantages and take advantage of them to maximize the value you can get from your account.
Always check for any fees
Zero-balance accounts do not require a minimum balance they may still be charged for services such as out of network ATM withdrawals or transfer of funds. Examine the fee schedule of your particular account (Schedule of Costs) to avoid any additional fees. For instance, banks might reduce certain fees if direct deposits are created, which can result in savings on costs.
Review the interest rates regularly
Rates for interest are subject to change and it’s a good idea to check regularly if your account has an attractive rate. If you discover a better rate elsewhere, you might want to transfer your money. For example, if your account pays 3% and you locate a similar account with 7%, switching your money may yield greater returns over time.
Savings goals that are split across accounts
If you have several financial goals, such as saving for a trip or creating an emergency fund, think about making use of separate account for every. You can then monitor your progress and avoid the temptation to make use of those funds for different purposes. For instance, you could have an emergency fund saved in your account with zero balance and then open a new one to save for travel.
Endnote
The zero-balance savings accounts are an excellent choice for people who are looking for simple free accessibility to banking basics. They also aid businesses in making payroll simpler and managing project funds without the requirement to have the requirement of a minimum balance.
Nonprofits and charitable institutions are able to use these accounts to monitor certain donations and eliminate the monthly fees for maintenance. They offer the flexibility and financial integration. They’re suitable for people seeking a simple banking solution with different cash flow requirements as well as a desire for speed.