One of the challenges many people have with regards to saving money in the past is the fact that they find it difficult to make out time to get to the place where they intend to save the money before they spent the money. Imagine a situation where a person had just received his or her income and was hoping to save a significant percentage of it in the bank. However, since he or she must get to the bank to make the deposit, something might come up they would spend the money on that they would not have if they have been able to keep the money in the bank. With online banks, saving money is becoming easier. This article will discuss some of ways online banks have simplified.
Easily transfer your savings to a different account
Online banks have made it easier for people to transfer money into their savings account. Most people’s payments are now sent directly to their bank account. With this, before they start spending their money, they can easily transfer whatever they want to save to their savings account before they start making other expenses. Once their savings account is such that they cannot access the money at will, the money would be safe and they would get by for the rest of the month pending when their next pay check will arrive.
Use of standing orders
Another way online banks have made it easy to save money is through standing order. With standing orders, you do not need to manually transfer the money to your account. Standing order entails giving your bank an instruction to automatically transfer a particular amount of money from your account to another account on a particular day of the month. if you know you always get your check on a particular day, you can leave a standing order on that account that a particular amount of the money be sent into your savings account automatically on that day. Once it is that particular day and your balance equals or exceeds the money, the money is automatically moved to the account without any extra effort or manual transfer from you. In the past, you would have to go to the bank with a signed letter to that effect. Fortunately, this would only have to be once until when you want to cancel it. However, with online banks, it is now possible to create a standing order with your mobile app that would be honoured by the bank. Once you do so, your savings would be automatically deducted like a type of bill. It will be easier to meet your target with savings and you won’t be tempted to skip saving for a particular month with a little bit of discipline. You would just assume the deductions are natural and you would allow the deduction to go through. This is considering that online banks also make it easy for you to stop the deductions since you can do same with your app.
Shared Spaces Bank Account
Another way online banks are simplifying saving money is through shared spaces bank account. The shared spaces bank account implies that you can have a shared account with many people where you can invite family, friends, roommates and partners to withdraw money from the platform. With shared spaces, everybody can see what you spend money on. With such consciousness, you would only spend money on things that are worth it and avoid reckless spending. This could contribute to your goal of saving money. You can read reviews about N26’s shared spaces to know more about how shared spaces bank account work and how you can benefit from it.
Paying money for investments
If you decide to save through investments, it is also possible to always transfer money to the investment platform you want to invest in either immediately your salary is paid to your account or through a standing order as well. Just like the case of direct savings, if your investment requires you sending a particular amount down every month, you would not have to bother about struggling to transfer the money or something else taking up the money before you are able to transfer it. You just do it automatically or immediately you get the money and you would have met your target regarding that.