1. Make larger withdrawals, fewer times
It is best to use your card or UPI to make most of the daily payments. If you really can’t do without the cash, make a large withdrawal within the 3-4 free limits set by your bank for future use. You will save Rs 50 or more on multiple withdrawals up to Rs 10,000.
2. Avoid checks
Banks charge you Rs 20 or more for each additional checkbook. Plus, your extra checkbooks will have half as many sheets as the first one. Switch to online banking for your large payments because it’s cheap, easy to access and track payments, and doesn’t require the added burden of mailing the check.
3. Opt for automatic payments
If you are unable to keep track of due dates, chances are you missed paying your bills on time. To avoid paying late fees, opt for your bank’s automatic payment facility. Your utility bills such as electricity, telephone, etc. will be taken care of for you.
You can also opt for direct debit for credit card bills. Ask your bank to deduct a minimum percentage from your bank balance each month on the due date for your credit card payment to avoid being heavily billed.
4. Be careful with the use of your credit card
Most importantly, do not exceed your credit limit as a fee of 2.5% or Rs 500 may be charged as a fee for extending the credit facility. Also, do not withdraw money with your credit card. Besides the withdrawal fee on the amount, you will have to pay interest on it.
5. Maintain a minimum balance
Maintain a minimum balance in your account according to your bank’s criteria. If you have a rural branch account, the limit should be relatively lower. Also, do not issue a check to make a payment in excess of the balance you have in your account. This will not only result in a fine, a bad check is treated as a criminal offense.