A current account is a bank account using which the account-holder can deposit and withdraw funds from the account as and when required. Unlike a savings account which has certain restrictions in the number of transactions allowed per month, the restrictions on current accounts are very liberal. Some current accounts have no restrictions at all. This is specifically aimed at providing ease of transactions to businesses.
But sometimes we get carried away while using the current account thanks to its easy use through technology. This leads to less savings and can have negative impacts when funds are needed the most. So in this tech age, it is necessary to use current account judiciously.
Go through the below list of tips which can help you in using your current account judiciously:
Use cash as much as possible
While financial technology has made life more comfortable, it has also made it difficult to use it sparingly. Currently, you can just swipe your debit card, use a mobile wallet or use a online current account for payments instead of opening your wallets and using cash.
Here is the trick, instead of using cards withdraw a fixed amount of necessary cash from the ATM and use it accordingly. It is easier to keep a track on cash spending because you can physically see the money emptying from your wallet.
By maintaining this habit, you will be able to maintain a frugal use of your current account. So next time if possible use cash instead of debit card.
Look out for incentives
Another way of frugal use of a current account is to choose an account that offers you the best incentives. Features like rewards for maintaining minimum balances, no monthly fees, and a wide network of no-fee ATM can help in maintaining a frugal use of your account.
Always compare the current account services of various banks and choose the best one.
Keep a record of your spending’s
Always keep a record of where, how much, and on what do you spend. It is a big challenge to keep a record of your expenditure while using a current account. By writing down, you will able to identify which expenses are required and which one is not. Always remember that certain expenditures are required in order to maintain a certain level of lifestyle.
Identify the unwanted expenditures and cut it down, which will further help you in using your current account with utmost care.
These are some of the tips on how to use your current account carefully. By following the above tips, you will inculcate a habit of saving money. So whether you open current account online or physically through a bank branch, choose the one which provides the maximum monetary benefits. Make use of cash as much as possible and keep a track on your expenditures and control your spending’s. This will make you save a lot of money which can be used for better purposes.