If you would like to manage your money better in the future, you might think that a checking or credit card holds the solution to your problems. However, it is hard to keep track of your money that is in the bank, unless you have internet and mobile banking, and you might be on a tight budget, which means dealing with cash is better. Below you’ll find seven reasons why you shouldn’t sign up for an expensive premium bank account.

bank account

You Only Use Basic Account Services

For most people living an ordinary life, a simple checking account will do. You can still get your salary paid in your bank and make withdrawals and transfers using the online app. While you might get lower fees on your overseas transactions and transfers if you have a premium bank account, you might not see the benefits that much if you simply get paid and pay your bills every month.

You Can Get the Insurance Elsewhere Cheaper

You will always have to compare the benefits and costs of the extra services with online quotes, to make sure that you are not wasting your money every month paying for services that you could get cheaper elsewhere. A good habit to follow in life is to take a step back and remove yourself from the situation to assess it rationally. Are you looking for a peace of mind on your holiday? Chances are that you will get the single cover for less than your yearly fees to cover you and your family.

You Can’t Use the Additional Benefits

Sometimes we simply can’t use the benefits added to our accounts. You will not benefit from a breakdown cover if you don’t have a car. Likewise, if you are renting your home, some of the emergency covers might not apply to you. It is important that you check the terms and conditions before you sign up, especially if you are self employed or run your business at home, as this can trigger several bank account insurance exclusions.

You Can’t Afford It

Sometimes you realize that the benefits of a premium bank account would improve your life and give you a peace of mind, but you simply cannot afford the extra 10-20 dollars a month. In this case, check out which services are the most important, and shop around for individual protection and cover, to see if you can get a better deal than your bank is offering you.

You Use PayPal for Your Business

If you are an affiliate marketer or are trading on the internet selling your own products, chances are that you are getting paid electronically. When you are running an online business, chances are that you are not getting paid into your bank account. Yo might benefit from a business PayPal account to reduce your fees, but might only use your bank to pay your bills and transfer your electronic balances.

You Are Not Bothered about Withdrawal and Transfer Fees

If you simply don’t make enough transactions each month to warrant for a premium account, you can simply downgrade. You can even do your banking without going to the cashier’s desk every week. Take advantage of Kroger check cashing or international and postal services to reduce your fees and get your finances in order while you are out and about doing your shopping or visiting your beauty salon in town.

You Don’t Want to Go In the Red

Some of the premium bank accounts come with an overdraft facility, and – unless you request the removal in writing – this can tempt you to spend more than you have in your account. If you want to budget better in the future and avoid building up credit, you might want to stick with a standard bank account that doesn’t let you spend the bank’s money and get charged for it over time. In case you would like to eliminate your debt and build up your credit score, you should choose an account that puts you in control of the spending limits and restricts your access to credit.

While flashing your premium bank card at the restaurant or while on holiday might be satisfying, you could end up paying more for the additional features and services than they are worth. Always check whether you can afford the monthly fee, and if you can take advantage of the offers. If you have an expensive cell phone and the insurance is covered in your deal, you might get a better cover through your bank, or you might not.

Greg Kononenko
Greg Kononenko

My name is Greg Kononenko and I am a full-time online blogger and owner of Dad's Hustle. I'm a dad, and my passion is to help other mums and dads to start their own "hustle" and improve the financial future of their families.

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