A current account is deposit account neither earns you interest nor lets you save money for yourself, but it grants the account holders the uncanny ability to frequently, quickly, and securely access and withdraw funds through a variety of channels.
But this access to funds (subject to its availability in the bank), comes in part by relieving the bank of some responsibilities e.g. making access to these funds via cards, transfer of payments requiring verification of account numbers, overdraft procedures, among others — all of which can impede the smooth running of the current account.
Here are 7 tips to make the account run smoother, easier to access, and maintain:
- Double check the details
- Track your Bank Statements
- Complete Account Closures
- Understand your “Chargeback” rights
- Avoid Overdraft Fees
- Secure Your PIN and Card
- When Closing an Account, Inform All Payers
1. When Paying money in, Double check the details
If you are transferring money in from or paying money in to your account, make sure that the account details are 100% right. Double check your account number because getting even a single figure wrong can irretrievably send the money into another account.
Given that banks are normally not empowered to retrieve the funds wrongly accredited by an account holder (and not the bank), and that various cases exist where the recipient have known to take the money, close the account, and bolt — there is only one way you can avoid the trouble: check the details before letting the money go.
2. Keep track of your Bank Statements
Banks can make mistakes, but these are automatically recorded and sent to the account holder as bank statements. By checking them regularly and notifying the bank of any anomaly, you can drastically reduce the time required to get them right and your account back on the track. Managing your bank account is very important part of keeping your account in good stead.
3. Complete Account Closures
Normally there is a minimum funding amount that needs to be regularly paid-in to the bank. If you fail to go through the full procedure for closing the account then the remaining amount is automatically considered as underfunding, and penalized. As long as the closing procedure is not completed, these charges may continue to be imposed, and pile up.
4. Understand your “Chargeback” rights
Chargeback facility is not applicable to every type of payment. Therefore, to prevent trouble in case things go wrong, it is wise to choose to make payments by card whenever possible rather than through telegraphic transfers or writing cheques.
5. Avoid Overdraft Fees
More often than not, overdraft fees are incurred because the account holder did not keep track of the balances. The simplest way to avoid unnecessary overdraft fees is to keep your outgoings and incomings synchronized.
6. Take Additional Precautions to Secure Your PIN and Card
Your card and PIN are one tag team that over power the authority of your account signature. Anyone who has access to both of them is authorized to withdraw funds as frequently, securely, and quickly as the account’s legal holder (you). Therefore, in case you think that someone knows your PIN, change it immediately. Furthermore, if your card is due for renewal, as the bank to have it delivered to a branch and collect it personally.
7. When Closing an Account, Inform All Payers
Money directed to a closed account bounces off, and becomes difficult to track. Avoid the trouble by notifying all payees (or body/firm) which may be paying money in.