Current accounts are generally meant for daily transactions. Current accounts are no-interest deposit account that comes with an overdraft facility. This facility enables the current account holders to withdraw more money from the account than the actual balance. The facilities offered by a current accounts make them suitable for traders and business people who regularly access their accounts. Nowadays, many individuals are opening small business accounts due to their benefits.
Every current account holder should know that they actually save money by taking advantage of their features. This article will describe five crazy simple ways to save money with your current account.
Choosing the right current account
Current account holders are often provided with debit cards to carry out their transactions. The debit cards can be a fantastic way to earn while spending. You should know that debit card purchases are awarded cashback. As current account transactions are generally on the heavier side, even 1% cashback can get you a significant amount. You can transfer this amount to your savings account with a good interest rate and get financially benefitted.
Saving the rewards earned on current account transactions
Many current account holders often forget to transfer the cash rewards they drew on a debit card or simply spend them for different purposes. By doing so, you lose the opportunity to save these additional funds.
Remember that current accounts are zero-interest account and thus, keeping additional money in them will not help you to grow your account balance. You can avoid this by setting an automatic transfer of your rewards to a savings account.
Seeking help from your spouse
Encouraging your significant other to open a current account linked to rewards is another wise move to accelerate your savings. This way, you can simply double up cashback rewards and transfer them to your savings account.
Balancing between spending and your budget
Although cashback rewards on a debit card will boost your savings, you need to balance between spending and your overall budget. Spending extra money just for the sake of cashback rewards is pointless.
Planning the budget
This is one of the most practical ways to save money with your current account. Plan your entire month’s budget by considering every regular expense like grocery, travel, and so on. One more thing you need to include in your budget is to decide the amount you wish to save in the same month. This practice will enable you to use your debit cards in order to obtain desired cashback from it.
Although saving and spending are entirely different actions, you can actually use your current account to save money. Just like opening an online current account is quick, transferring cashback earned on them to a savings account is also very simple these days. Taking help of an automatic transfer, you can boost the balance of your savings account.