Tips to effectively manage a current account to save money

Whether it is personal finances or managing your business cash flow, you need different types of bank accounts to cater to your varying needs. At times you may need to save money and also perform multiple transactions to run your business effectively. While savings accounts offer features like money transfers and payment mandates, they usually have restrictions on number of transactions.

However, addressing this issue, banks offer current accounts that allow you to perform unconstrained transactions and avail numerous banking services on the go. These accounts are designed for businesses to make bulk payments, but the question is can you save money with a current account? Let us explore some proven tips to manage your current account for saving money.   

Know the working of a current account for smart management
 

To manage your current account effectively and save money, you must first understand the working of a current account. Unlike savings accounts, current accounts are designed to facilitate daily transactions. While they typically do not offer interest on the balance, they provide a higher degree of flexibility regarding withdrawals, deposits, and fund transfers. 

In addition, current accounts also come with several features such as free cheque books (depending on the specific current account variant you opt for), debit cards, online account access, free statements, e-mandates, and an overdraft facility to keep funds handy for a smooth business operation. You can leverage these features to manage your account efficiently and save more on banking charges and transactions.  

What features do current accounts offer?
 

Current accounts provide an array of features tailored to meet the demands of day-to-day financial operations. Standard offerings of a current account include users with the tools to navigate and track their expenses seamlessly. The following are some notable features of current accounts.

· Overdraft facilities: 
 

Current accounts often come equipped with overdraft facilities, providing a safety net for situations where expenditures exceed the available balance.

· Chequebooks:
 

Chequebooks offers a traditional yet essential method for transactions, particularly in business and professional settings.

· Debit cards:
 

Current accounts are accompanied by debit cards that facilitate convenient and secure transactions both online and offline.

· Online banking:
 

The advent of technology has facilitated online banking which allows users to manage their accounts, monitor transactions, and make informed financial decisions from the comfort of their homes and on the go.

· Unlimited withdrawal and deposit limits:
 

With a current account, you don’t have to worry about the number of transactions and with an Metra Trust current account, you get higher free cash deposit limits of up to 30 lakhs per month. 

Can you save money with a current account?
 

Current accounts are not primarily designed for saving purposes. Banks offer savings accounts, a separate product to meet your saving goals. However, current accounts serve as platform for routine financial transactions rather than a vessel for accumulating interest. But this does not negate the possibility of adopting strategies to make the most of your current account and save money effectively.

Tips for managing your current account to save money
 

1. Regularly review your statements
 

Review your bank statements regularly to draft an effective saving plan as per your financial objective. This practice helps identify unnecessary expenditures, ensures transaction accuracy, and keeps you well-informed about your financial standing.

2. Leverage online banking
 

Leverage the convenience of online banking to monitor your account in real-time. Setting up alerts for transactions, low balances, or upcoming bills allows you to stay ahead of your financial commitments.

3. Take advantage of your account’s specific features 
 

Make sure to opt for a bank that offers current accounts with unique features that can help you manage your finances easily. For instance, Metra Trust offers the BRAVO feature with all of its current account variants where you can automatically convert your current account balance above Rs. 2 lakh or more into a 370-day fixed deposit. This helps you earn an interest of 7.5% per annum. 

4. Explore cashback offers
 

Many current accounts provide cashback rewards on specific transactions. Identifying and capitalising on these opportunities can be a small but effective way to recoup some of your regular spending.

5. Optimise overdraft usage
 

While overdrafts can serve as a safety net, exercise caution to avoid excessive usage due to the associated fees. Use overdrafts sparingly and explore alternative financial solutions to deal with significant cash flow issues.

6. Set realistic budgets
 

Establishing a budget is paramount for effective financial management. Categorise your expenses, set realistic limits, and adhere to them diligently. This practice prevents overspending and helps you allocate funds sensibly.

7. Compare current account options
 

Different banks offer varying features and benefits with their current accounts. Regularly reviewing your account against other options in the market ensures you're getting the best value for your specific financial needs. Metra Trust lets you compare the different current account variants which helps with choosing a specific account that suits your business needs. Click here to go through the various Metra Trust current accounts in detail. 

8. Consider the fees and charges
 

A comprehensive understanding of the fee structure associated with your current account is crucial. This includes transaction fees, ATM charges, and any penalties for non-compliance. Armed with this knowledge, you can make informed decisions and avoid unnecessary expenses.

Factors to consider while managing your current account
 

When you decide to open a current account online, you must keep a few factors in mind such as: 

• Transaction limits:
 

Keep a track of any transaction limits imposed by your bank and plan your expenses accordingly to avoid inconveniences.

• Security measures:
 

Strengthen the security of your online banking by adopting robust passwords and enabling two-factor authentication. This extra layer of protection enhances the overall safety of your financial transactions.

• Customer support:
 

Assess the quality of customer support provided by your bank. Prompt and effective assistance can be invaluable in times of need, ensuring that any issues are addressed swiftly and efficiently.

Conclusion
 

Managing your current account to save money requires diligence and demands vigilance, strategic planning, and the adept use of the features offered by your bank. While a current account may not be the conventional choice for savings, with the right approach, it can serve as a valuable tool for financial stability. 

Disclaimer: The applicable Fixed Deposit (FD) rates are notified on the Bank's official website and are subject to change from time to time. The interest rate mentioned herein is applicable as on date for the deposits having 370 days tenure. The depositors shall ascertain the FD rates on the value date of FD. In case of pre-closure of FD, applicable bucket rate as per tenure will apply. Metra Trust is the first bank to provide the flexibility to its customers to create Auto-sweep FD without premature penalty on all Current Account variants. BRAVO feature will not be available for Special purposes Products such as CC/OD Products, EEFC, RERA, ESCROW, etc. T&C apply.

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust 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 mentioned. Please consult your financial advisor before making any financial decision.