How many bank accounts do you have? If you only have one, then that’s good. That means you only have to manage one bank account; hence makes your life easier.
For many others, they prefer having multiple accounts so they won’t co-mingle their funds. This way, it is easier to track how much money they have for each particular fund, say Educational Fund or Emergency Fund.
Here’s the thing: having multiple bank accounts could be gruesome and time-consuming to manage. In case you prefer it this way, here are things you need to remember to make managing easier and more convenient for you:
Tip No. 1: Identify The Funds You Only Need
We understand that you need several funds for several goals; hence several bank accounts. But the question is do you really need to set aside a separate fund for EACH?
When it comes to managing multiple bank accounts, it is advisable that you have accounts for funds you only need. Ideally, you need to have a savings account that will cover home and family needs and an Emergency Fund since these two are enough. Having a checking account could be useful as well, especially if you have lenders who prefer checks as mode of payment. Otherwise, this is no longer necessary.
If you have an existing home loan with a bank and you opted for Automatic Debit Arrangement, then you might be required to have a separate bank account where they will debit the monthly amortization. Ask your payment options if you don’t like to open an account.
The bottom line is have accounts for funds you only need.
Tip No. 2: Online Banking Is Key
Technology has its ups and downs. When it comes to managing multiple accounts, make sure you take advantage of it.
One of the things you should take advantage of is the online banking facility. It allows you to check your balance, transfer cash from one account to another, and make payments. You will be able to see every transaction made when you do online banking.
Since you are working overseas, having this facility will make it easier and more convenient for you to see what account needs to be replenished.
Tip No. 3: Choose The Right Bank
Ideally, you’ll go for one bank for convenience. This will make fund transfer easier for you since you can just enrol both accounts.
The question is this: is your bank meeting your needs without charging you with hefty fees?
As a rule, you need to check various banks and evaluate their accounts facility. Since you work overseas, it is advisable to choose banks with overseas branches as well.
Ask about the interest rate earned, minimum maintaining balance, penalty charges, and perks for being an OFW. The government impose taxes, so make sure you look into that as well.
Spreading your accounts in multiple banks allow each account to enjoy different perks. Plus, PDIC imposed a P500,000 maximum coverage per depositor in case the bank goes bankrupt, which may or may not happen. But if the features are so similar that you can’t tell the difference, then stick to one or two banks.
Tip No. 4: Always Deposit Accordingly
Now that you identified which bank/s to go to, make it a habit to deposit money accordingly. Even if you could transfer money online, the idea of multiple accounts is to allow you to budget and prioritize your expenses.
Stick to your goal, deposit money consistently and accordingly, and be committed in making your money grow.