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5 Online Banking Features That Help With Money Management

April 21, 2023

Table of Contents

    Table of Contents

      Carefully manage your money with online banking services like automatic payment systems, mobile cheque deposits and more. These can manage your daily finances and always stay on top of your funds.

      Bank accounts keep your money secure and make them simple to use and save. However, if you consider your checking or savings bank accounts as merely a safekeeping for your hard-earned cash, you are not making use of all the capabilities accessible through online banking. Your hard-earned money deserves to be managed wisely, and online banking provides the features to do so effectively.

      In reality, your bank has various built-in benefits that may help you effectively manage your funds and keep a greater portion of your funds in those bank accounts.

      Whether you choose a traditional offline bank, a modern neo bank, or a hybrid of the two options, your requirements ought to be at the forefront of your overall banking experience and personal money management.

      This article offers five modern banking tools that can help anyone get a better grasp on their finances and be a better money manager.

      1. Low Balance Notifications

      Overdrawing from your account is considerably easier nowadays than when you would have to send a cheque or visit an actual bank location.

      You may quickly spend all the funds in your bank account without realising it if you use a debit card, click-to-pay alternatives with online businesses, and mobile payment services like GooglePay, PhonePe, and PayPal.

      The best approach to avoid overdraft charges is to prevent them from the beginning, which your bank may assist you with through low balance warnings. When your balance falls below a certain threshold, these real-time notifications can deliver you a mail, a text, or sometimes even a push alert (which displays on your device's lock screen).

      Whenever you get a low balance notice, you'll know to either stop spending or place a deposit to avoid overdrawing your bank account, which could be the best way to manage your money.

      To register for a poor balance text or email notification, visit your bank's website and look for "manage finance notifications" or "alerts." If these selections do not display on the main screen after logging in, they may show under your Profile or Settings tab.

      There are usually various choices, such as how much money the balance must be to activate the alarm and if you prefer email or text push notification. If you want to receive text messages, you must first opt in and then activate the feature by inputting a one-time passcode that the bank will provide to you via text messages.

      This way, you can easily manage your money without the help of a professional personal finance manager.

      2. Bill Paying Online and Automatically

      Payment deadlines have traditionally been a cause of annoyance for anybody who struggles with bad management of time. Nevertheless, when your invoices came into the mailbox, you had the bill lying on your work table, alerting you of the deadline.

      Nevertheless, since most invoices are now delivered and must be paid online, keeping track of bill-paying can be considerably more challenging. This will help you to manage finances effectively.

      To register for this service through your bank, compile the invoices you pay and the account number and dates for each. Go to the Bill Pay option on your bank's website and input each of your invoices.

      You may then pick the date and the amount you want to pay everyone, as well as if you wish to make lumpsum or monthly payments. This regular payment feature is ideal for expenses because you pay an identical monthly amount, and it is a basic money management tip.

      Most banks will send you bill notifications for each of your invoices. This will prompt you to check in and settle nonrecurring invoices. The alert can warn you of recurring expenses to ensure you have enough funds in your account to cover the next instalment. This could prove to be the best way to manage finances.

      3. Savings Sub-Accounts via 6 Jars Money Management 

      You understand that saving cash is a vital element of managing your finances.

      Therefore, you have been gradually increasing your savings account every month. However, not saving funds with a clear aim (such as unprecedented medical trouble) might make a significant hole in those funds since an undesignated savings account can seem more like a secondary bank account.

      If you're having trouble saving and managing your money, your bank can provide an answer: sub-accounts for an existing savings account. These sub-accounts allow you to select what you want to save for in each.

      When you designate an account for your specific down payment funds, you are significantly less likely to use it to fund a holiday. This is how you need to manage money wisely.

      Mental accounting, a technique that causes people to value funds differently based on how you categorise them, will push you to become more accountable with cash with a particular purpose rather than the money that remains in unlabelled reserves.

      In fact, it could also work well as a tool for money management for teens. This process is a start in case you want to learn good money management for young adults.

      4. Budgeting Apps for the Web and Mobile

      Online budgeting tools were previously exclusively available through multiple third-party applications and software programs. You had to analyse and categorise your expenditure, set savings targets, and build a spending strategy independently from your bank and manage money better.

      However, an increasing number of banks are now providing budgeting services that you can access from your mobile or desktop device, allowing you to stay on track with your money without ever needing to sign out of the banking site or application. This is one of the better ways to manage money online.

      5. Cheque Deposit Through Smartphone

      Many banks now provide cheque deposits using their mobile application, allowing you to transfer them online without needing to contact a bank location or ATM. Most cheques will require you to endorse at the backside with a statement like "For (name of bank) mobile deposit only" alongside your signature.

      The application will state the need for endorsement.  You can then use the application to scan the front and backside of the cheque. With this benefit, you may deposit any cheque you get immediately, which will undoubtedly help in managing your personal finance.

      The Bottom Line

      Since you now have a better idea of how bank accounts can help you manage your money better, you may want to consider taking action and opening an account if you don’t have one already. Banks can be the best way to manage money.

      Even if your cash flow is stable and you don’t need help managing money, for the time being, that doesn't mean that your finances won't change in the future.

      Should your income or expenses adjust, or should you need extra protected savings space, having a bank account on hand could help—it just makes sense to be ready and have a smart money management plan in place.