Simple Strategy for managing your saving account:
Before moving forward to enjoy the leisure to manage the saving account. I would like to differentiate between efficiently and effectively. The thing that is effective may not be efficient and the thing that is efficient may not be effective. Like for example The bike Bajaj Platina will give an excellent milage say 101 kmpl as stated by bajaj. One can say that the bike is very efficient but if two persons of 100 kg each are siting on the bike, it may not move or climb up a steep slope. But if it is Bajaj 200 cc Pulsar, one can find it to be less fuel efficient and but more effective in this case.
Same is the case with your saving accounts with banks- you may find that you are managing it efficiently but you may not be managing it effectively. I would not go in to the complexities of saving accounts in which one has to maintain a minimum average quarterly balance say Rs. 5000 or Rs. 10000. Simple strategy that most of the people do not know is how to manage their saving account. Most of the people have a view point that saving accounts are meant to pouring in and out money without thinking about the dates on which they are making the transactions. Even if one deposit money on 10th of a month and keeps the money till the last day of the month – he/she gets the full month interest, even if you do not have a single rupee in the bank between 1st and 10th of that month.
Only principle one has to follow here is to try to avoid a transaction between 10th and last day of the month. I am taking an example of two persons : Person A who mismanaged his funds and Person B who managed his funds efficiently and effectively.
Person A deposited rupees Two lakhs in his saving account on 1rd of September,2008 and finds money safe in his saving account. Suddenly on 30th of September, 2008 obligation of two lakhs arises and he has to withdraw the same amount and meets his obligation on 30th September.
Person B deposited rupees Two lakhs in his saving account on 10th of September, 2008 and notes the transaction date in his dairy as well. He is really cautious about his usage of funds. Suddenly on 30th of September, 2008 the obligation of two lakhs arises and for that he simply said that he will meet the obligation on 1st of October. Also he met the same on 1st of October,2008.
Impact of management and mismanagement: Considering 3.5% Rate of interest per annum. Person A end up with no interest earned for his 29 days of money in the saving account and Person A earned five hundred and eighty three rupees for his 20 days amount deposited in his saving account.
So, a simple strategy can help you to earn more if you manage your saving account efficiently and effectively.
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