My money

Olebile Makhupe | Monday March 7, 2011 00:00

* Ask yourself, and your bank, if you're getting the best deal - About once a year, talk to a customer services representative at your bank to make sure you're signed up for the right banking programmes to meet your needs. Maybe a simple adjustment to your banking practices - such as having your paycheck automatically deposited into your checking account - can get you a higher interest rate or reduce or eliminate certain bank charges. Perhaps a change in your banking habits will help cut your bank fees. Maybe your good track record at the bank will qualify you for a lower interest rate on a loan or credit card. Or maybe there is just a new or better bank account that you did not know about.

* Simplify your life. Your bank can arrange for the 'direct deposit' of your pay and benefit checks and other regular income into your bank account/checking account. You also can have your bank automatically make some of your regular payments directly out of your bank account/checking account, such as your mortgage, health insurance premiums, utility bills and investments.

Also think about doing other banking the high-tech way, such as withdrawing money from ATMs instead of standing in line at the branch or rushing to get to the branch during banking hours. Consider using a bank debit card or check card to pay for purchases from your checking account without writing a check. Banking from home, by phone or computer, also can be a time-saver.

* Get to know bank employees you can turn to for help. Write down the names and numbers of bank employees who, in-person or over the phone, seem to be especially helpful and knowledgeable. If possible, become a familiar voice or face to them. Why go to this trouble? A good bank teller, branch manager, customer service representative, loan officer or supervisor can help get your banking questions answered and your bank problems solved. They may even come to your aid in a financial emergency, especially if they know you and that you have a good relationship with the bank.

* Do not be afraid to make a complaint at your bank. No bank employee really enjoys hearing from a disgruntled customer. But your bank's managers probably would prefer you bring a banking problem to their attention and be given the chance to fix it rather than take your business elsewhere or tell all your friends about 'that lousy bank.'

If you do not get satisfaction from a customer service representative or another employee, consider talking to a bank supervisor.

* Do not be afraid to ask your bank for a break. Bounce a check for the first time ever? Want a copy of an old monthly bank statement? Think the fees for your mortgage application are a bit high? Depending on the circumstances, your bank might be willing to reduce or waive a bank fee or penalty, especially if you have been a good bank customer and do not have a history as a 'repeat offender.'

Also consider talking to your banker if you are having problems repaying your bank loan. Explain the situation and any unusual circumstances. Many lenders will agree to temporary or permanent reductions in your loan interest rate, monthly payment or other charges. Again, it helps if you have had a clean record in the past.

* Read your monthly bank statements. Your bank statements, credit card bills and other mailings from your bank may not make for exciting reading, but they can be among the most important literature you will read.

Also review your bank statement as soon as possible after it arrives to make sure there are no unauthorised charges. If you suspect that a thief has used one of your checks or your credit card, go right to the phone and call the bank.

How quickly you report a problem with an ATM debit card could be especially important in limiting your losses.

Waiting too long to notify your bank of an unauthorised ATM transfer means you may be responsible for all the money withdrawn. You are not responsible for funds withdrawn after you notify the bank that the ATM card is lost or stolen.

Another good reason to look at your bank statement as soon as possible is to make sure you have enough in your checking account to avoid bounced checks.

* Read the fine print. Knowing the costs and requirements of a bank account before you sign on the dotted line can prevent a bank complaint or hassle later. Example: Just because a bank account is advertised as 'free' or 'no cost' does not mean you will never run up bank costs. A banking institution is not allowed to advertise a free checking account if you could be charged a bank account maintenance fee or activity fee (such as for going below a required minimum balance). But your bank can offer a free bank account and still impose bank charges for certain services, such as check printing, automated teller machine (ATM) use, and bounced checks. Also, ask your bank if an attractive interest rate on a credit card or a deposit is really just a short-term, introductory 'teaser' rate.

* Keep good bank records. Hold on to your bank receipts for deposits, ATM withdrawals, credit card charges, and other bank transactions long enough to confirm that your monthly bank account statements (or credit card statements) are correct. Later it's OK to toss these pieces of paper in the trash, but be sure to rip them up enough so that a thief cannot read or use them.

*Use your bank as an information resource. A good banker can be an excellent source of advice and information -- not just for banking tips but also about starting or expanding a business, buying a car or home, qualifying for a loan or dealing with a debt problem. He or she also might be able to direct you to good contacts in other businesses or have excellent reference material handy. All of this is yet another reason to get to know the right people at the bank.

Olebile Makhupe is the Head of Global Markets at Standard Chartered Bank Botswana. For feedback and contributions, please e-mail: mymoney@mmegi.bw.