For many OFWs, saving up and remitting money back home is only possible by opening several bank accounts. However, when you have several accounts already open, managing them can be a daunting task to do.
And while our intentions may be well and good since we know that banks offer different types of benefits for various account purposes, clearly, opening more than just one account isn’t the problem here. In this post, we will share some tips on how you can better manage your funds if you have multiple bank accounts. Continue to read below to know how…
[Guide] How You Can Manage Your Bank Accounts More Effectively
Perhaps the most important thing here is to remain organized in managing your accounts, especially since we are dealing with money that could be allotted for your monthly recurring overhead, your child’s education, or your family’s emergency fund.
Be sure to consider these four easy-to-do tips to get your fund management as organized as it can get
- Determine which bank best suits your profile and goals.
The most important consideration when picking a bank is the convenience it can offer you. This will make fund transfer between accounts so much easier since they’re both enrolled under one bank.
Another thing to consider is if your chosen bank meets your financial goals at affordable rates.
The only way to find out is to check various banks and evaluate their accounts facility. And for those working overseas, it is highly advisable to choose banks with overseas branches as well.
Note: Ask about the interest rate earned, minimum maintaining balance, penalty charges, and perks for OFWs. The government imposes taxes, so be sure to look out for that, as well.
Also, spreading your funds in multiple banks allow each account to benefit from different perks. At the same time, the PDIC has set a PHP 500,000 maximum coverage per depositor in case the bank goes bankrupt, which may or may not happen. However, if any of these features are negligible that you don’t really mind the difference, then you can just work with one or two banks, at the very least.
- Identify which funds you need to keep.
As stated earlier, opening several bank accounts for different goals isn’t necessarily a wrong thing. However, we should always examine our purpose for opening each. Remember to ask yourself, “Do I really need to set aside a separate fund for this (purpose)?”
Taking this into consideration, it’s always best to open accounts for funds you only need. Ideally, you will need to have a Savings Account that will cover home and family needs and an Emergency Fund since these two are the basic ones that would cover everything you need in the present. Having a checking account could also be useful, especially if you have lenders who prefer checks as a mode of payment. Otherwise, you can just stick with the aforementioned two account types.
For those who have an existing home loan with a bank, which is set to Automatic Debit Arrangement, having a separate bank account for this may be necessary. However, before doing so, be sure to ask your payment options if you don’t like to open an account.
As a general rule, keeping only the bank accounts that you have a specific use for is the main goal here.
- Maximize online banking.
Nowadays, management in all forms can be optimized through the use of technology, and banking is no exemption.
Online banking allows you to check your balance, transfer cash from one account to another, and make payments. Of note, you will be able to see every transaction made when you do online banking, as well.
This is especially useful for those working overseas because it will make it easier and more convenient for you to check which account needs to be replenished.
- Always deposit your funds accordingly.
After you’ve decided which bank accounts to go with or which accounts to keep, it’s important for you to make it a habit to deposit money on your accounts accordingly. Even if you could transfer money online, the goal in having multiple accounts is to enable you to budget and allocate your expenses accordingly based on your financial needs and goals.
To sum up, your goals should help you manage your accounts accordingly. By maximizing the activities of your accounts, you can monitor which areas of your finances you need to further improve on in terms of fund management. The benefits of organizing your accounts go beyond better financial management, but it will also help you stick to your goals or projects through time.
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