Cost Effective Banking Leigh

Bank accounts are not just places for us to keep our money until we need it - they can also be expensive if they are not looked after properly. Bank charges, varying interest rates and the prevalence of fraud can all contribute to you losing more of your money than you ought to.

Find an account that rewards you for being in credit
If you are always in credit, look for an account hat pays you interest. For most people, this may only be a few pence or a few pounds, but it's better than nothing. For a look at the best savings accounts, check out Money Saving Expert or Money Supermarket .

Keeping an eye on overdraft costs
Going overdrawn is where your bank fees really start to add up. First of all, speak to your bank about a regular authorised overdraft limit. If, for example, you have two or three payments that come out of your account on the first of each month, ask for an authorised overdraft that covers these amounts. That way, if your employer pays you late for any reason, you won't be overly penalised. Banks charge more when your overdraft is unauthorised than when it is authorised.

Your bank will hit you with other fees as well, such as bouncing a cheque or failing to make a direct debit payment. These fees have been as high as £35 per transaction in the past but some banks have dropped them to £12 amid ongoing campaigns and court cases against so-called penalty charges. Even so, while banks are still able to charge these penalties, £12 is a lot of money if you have several bounced transactions in a month.

Bear these tips in mind:

• If you think you are going to exceed your limit, contact your bank in advance. They will try to help but at least you are likely to incur less penalties than if you don't pre-warn them.
• Check every bank statement you receive. Better still, regular check your account online. Look for any charges or bounced payments. If something shows up that you didn't know anything about, contact the bank. In some cases, banks cancel charges if there is a genuine reason to do so - so keep an eye on everything and question it where you can.
• Question anything on your statement that looks wrong. You may spot a retailer has taken money from your account twice, or you may find a direct debit from a utility company that shouldn't be taking money from you. Anything incorrect or that looks suspicious, report it to the bank.