How your bank might be robbing you, with your consent.

How your bank might be robbing you, with your consent.

Banks are in business to make money and they do. Never forget that. The primary motive of any bank is to make as much money from you as they legally can and for as long as you will permit them. They might provide security for your money and occasionally give you loans (with big and unreasonable interest rates) but on the comparative scale, it is more in their interest than yours on all counts. The banking sector has seen tremendous growth in recent times in Ghana and I believe this trend will continue for several years to come. Fortunately with many options comes much better choices and hence it is extremely important to know how you can get these better options. This brings me to the lesson of this article and this point I must tell you, my cherished reader that, your bank might be robbing you blind with your consent of course! You might have a current account or savings account or even both, sometimes in the same bank or different banks. My question is, how much do you really know about your bank and the account you are operating? Here are three ways your bank might be robbing you.

1. Savings Accounts

Do you know, you are supposed to be earning interest on your account? You may not be earning any interest on your savings accounts because you do not have the minimum balance required to earn interest. Do you know what your bank’s minimum balance is? Well if you don’t, then you are just lending your money to the bank for them to use it for their business, earn profits and give them back to you as a loan and earn more profits on the interest you pay them. You might even be paying lots of hidden charges on your account whiles you earn nothing on your money. Some banks have a minimum balance of 500ghc for a savings account before you can earn interest per anum, other banks have less.  Know what your bank’s policy is and if it is not favorable, find another bank whose is.

2. ATM cards

Watch the cards. The next time you visit your bank, look on the wall or ask for their retail banking tariff guide. It will tell you exactly how much you are being charged for using your cards to withdraw your own money. Some banks charge 30 pesewas for in-bank card usage and as much 1.50ghc for inter-bank card usage (i.e. Visa ATM cards). So anytime your bank’s ATM is not working or is crowded and you decide to use another bank’s ATM, know you are paying that much to withdraw your money. Some banks offer free in-bank ATM services and have a record of well-functioning machines, so unless your bank is giving you the best services available, make the switch quickly.

3. Current Accounts

If you do not have to make several withdrawals sometimes on a moment’s notice or if you do not have to write several checks in a month, avoid too many current accounts. Some banks charge a fee on any withdrawal made on a current account in addition to a flat monthly rate for operations. So you might be paying for all your current accounts whether you use them or not. Convert most of your accounts to savings and keep just one or two with the banks that have the lowest charges and effective service. It will save you lots of unnecessary costs.

Finally, more options mean more and better choices. Do not be stuck with unsatisfactory services while you lose money in addition. Know your bank and stop the robbery by consent.