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Selecting Banks
One of the avenues where you can save operating
expenses is to carefully select a bank. Different
banks are suitable for different lifestyles & needs.
Following aspects can help you in identify which
bank suits your need
Although, the points to be discussed are minute but
on the whole it will make significant difference in
day to day activities/cost of banking.
Low Balance High Yield Accounts are the ones
that requires lower minimum balance promising
higher yields. These accounts are targeted for
attracting household expenses account/petty cash from their
customers. Apart from offering higher yields, it
also offers associated free services like ATM, lockers,
Sms banking etc.
Convenient Location is again a minute factor
but convenience of branch network not only saves
time in commuting but also incurs less fuel expense.
Three to four trips at near located branch can save
you Rs. 200-300/- on monthly basis as compare to if
the branch is far off.
Cheap Lockers can also one of the sources to
save Rs. 1.000-1,500/- on annual basis. Insurance
coverage as per Schedule given by State Bank of
Pakistan is the same so wherever you maintain your
locker compensation/security is equal. Usually banks
offer free locker facility upon maintenance of
certain balance
ATM annual fee of Rs. 100-200/- can also be
saved if you choose your bank wisely. Banks claiming
to have very extensive coverage does not benefit you
because probably such extensive coverage can never
be of any benefit to you.
Utility Bill Automation is being provided by
many banks which reduces hassle of submitting bills
on time. Funds are automatically debited from you
account as and when due
Cheap Over Drafts can also have you to create
cushion for rainy days . Over draft facility can be
obtained against long term saving scheme
certificates or any long term placed deposit at very
cheap rates. As rainy days cannot be forecasted, low
cost of financing can be significant relieve in
financial management of rainy days
Credit Card Payment Automation can reduce
late payment charges along with improvement in
credit worthiness. Many banks provide auto debit
facility for making your loan/credit card payments.
Average charges for late payments is Rs. 500/-.
Saving of Rs. 6,000/- annually with one credit card.
Cash Withdrawal tax is cost of taking cash at
0.3%, which is an added cost and it can be avoid if
you plan you cash withdrawal in denomination of PKR
25,000 per day
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