Independence is not something that we seek only after becoming adults. Of course, at that age, independence is generally associated with things like the freedom to choose our friends and the kinds of games that we play. However, as we become older, we begin to associate independence with other things. It is at this time that independence and money begin to form links.
As we become earning members of the family, we come to realize that we need to make our money grow. So we look forward to either investing our money in stocks and shares or depositing it in a bank. There is great joy to be gained in watching the money grow in multiple folds every year.
It is for the same reason that we listen to the advice of friends and family members when we are to open a bank account. Most often, we choose to open an account with a leading bank which offers various services. However, we should remember that these services are not freebies. As a result, we should look out for banks that charge the lowest rates for these services. For instance, a number of banks charge an additional fee if we ask for things like locker facilities or a greater number of check books. However, this may not be seen for most banks. In fact, several banks willingly offer the same services at no extra cost.
It is always better to open an account in no more than one or two banks. You might be tempted to go and get a few more bank accounts, but this would be highly avoidable. What happens if you do this is that you may lose count of your cash inflow. This takes place especially if you are in the habit of operating all the accounts simultaneously. As a result, the savings in each diminishes at the same time. This is not a healthy way to operate a bank account. These days most bank accounts have the ATM facility; so we can draw cash in case of emergency.
Before opening an account with a bank, we must think hard about whether it is going to be useful or not. If we are working on a project and our client has an account with a particular bank, it makes sense to have an account there. This will enable the client to transfer funds to you immediately through that account. If there is no such purpose, you would only be locking up your funds in an account that will probably not be used.
Some banks also have the facility of automatically transferring your funds into a fixed deposit if you have not operated the account over a long period of time. This means that you earn more on the money in that account. In such a case, your gamble would have paid off.
Bank accounts need to be overseen daily. Some banks charge a fee if the account is not operated every so often. Such minor details may have major impacts on our finances, and we cannot afford to neglect them.