A Current Account is typically used for day-to-day financial transactions. While it may not be the first thing that comes to mind when considering savings strategies, it can actually be a useful tool in managing and saving money efficiently. Read on to know how to use Current Account to save money more effectively.
Smart tips to use Current Account to save money
1. Choose the right Current Account
Begin by comparing various banks and their account offerings, focusing on key factors such as transaction limits, waivers on transaction charges and complimentary services like cheque books and Overdraft facilities. Major banks offer a variety of Current Accounts loaded with features. For example, Axis Bank's Delite Current Account (specifically meant for retailers) is a digital Current Account that can be opened instantly online and offers zero monthly average balance requirements. Hence, select a Current Account based on your specific needs.
2. Automate your savings
Set up an automatic transfer from your Current Account to a Savings Account on a regular basis. This could be weekly, bi-weekly or monthly, depending on your income schedule. By doing this, you are paying yourself first and ensuring that a portion of your income is consistently being saved. Many banks offer tools to make this automation easy and customisable.
3. Save more with fee waivers
Utilising the high transaction limits of your Current Account, along with waivers on transaction charges, can significantly enhance your financial management and savings strategy. For instance, Axis Bank offers free cheque book issuance and no additional charge on cash withdrawal, irrespective of the number of transactions made. This approach allows you to handle a higher volume of transactions without incurring extra costs, ensuring that more of your money stays in your account, contributing to your savings over time.
4. Utilise the Overdraft facility
An Overdraft facility on your Current Account can be a useful tool for managing short-term cash flow issues. This will save you from incurring the high costs associated with other forms of credit. By having access to an Overdraft, you can avoid the hefty penalties and fees that come with bounced checks or missed payments, effectively saving money in the long run.
5. Cashback and rewards
Many Current Accounts offer Debit Cards that have perks like cashback on certain transactions, rewards points or discounts with affiliated merchants. Take advantage of these benefits by using your Current Account for everyday spending. You can get other benefits like complimentary movie tickets, airport lounge access and insurance cover.
Also Read: Complete guide to opening a Current Account
Conclusion
Using your Current Account to save money can be a highly effective strategy when approached thoughtfully. By leveraging high transaction limits, fee waivers and complimentary services, as well as taking advantage of cashback and rewards programs, you can significantly boost your savings. Additionally, selecting the right Current Account tailored to your financial needs and goals can streamline your expenses and enhance your financial management.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
