After rounding off such a massive year with a well-deserved festive season, it can be hard to get into the swing of things and find motivation. Luckily, we are here to help — with your finances at least. That’s why we’ve created a 4-week financial challenge to help you get financially fit for 2021.
We’re kicking off our challenge with banking. It’s a big part of your finances and where a bunch of your cash lives.
You’ll be forgiven for staying with the same bank your parents bank with. In fact, a Credit Union Australia (CUA) survey found that 50% of Aussies aged 18 – 24 years choose the same bank as their parents.
What will we cover this week?
This week, we delve into what you need to know to make your dollar go further. You may think that throwing all your hard earned cash with one institution is the way to go. That may be the case, however, having separate accounts for separate functions may be a more financially viable option based on interest rates, rewards, penalties, and so on.
The different types of banking accounts include:
- Savings account
- Debit account
- Transaction account
- Business account
- Credit card
We will be going through the different types of accounts, what to look for, mortgage options, loans, questions to ask, and give you some advice on making the whole process a little easier.
What you will need
Luckily, this financial challenge doesn’t require any burpees or overpriced gym memberships to take part. Before we dive in, it might be a good idea to get an understanding of:
- Account fees
- Interest rates
- Loan terms
- Any cancellation fees that may apply
- Outstanding payments due
- Repayment schedules
Once you have that sorted, take a look at this list of banking institutions in Australia. This will be a helpful resource to refer to when doing your own research.
That’s it for now. Stay tuned for more!