How Online Banking Can Save You Hundreds

How Online Banking Can Save You Hundreds

No one likes paying their bills. When you sit down each month to do your budgeting, it can be a real struggle for many families to make ends meet. Stretching your dollars to cover all the costs may leave you feeling strung out before all is said and done, but what if I told you there are simple ways you can save money just by switching your old bill paying habits? Thanks to the growing convenience of the Internet, thousands of businesses from insurance agents and mortgage companies, to cell phone service providers and utility companies now offer their customers the option to pay each month online.

Depending on how much your bank charges you each time your order checks, you could save $40 to $100 a year on the cost of checks alone. Cutting back on the amount of checks you write by directly connecting your accounts to your checking account or credit card is a real money saver. Another perk, if you happen to use a credit card with a rewards program, is that every time you pay your bills you’ll earn rewards that can be used toward flight points and free products, depending on your program.

The cost of stamps seems to go up every six months, and while $9 might not seem like much to drop on a book of stamps, if you’ve got ten to twenty bills to pay each month you will spend around $100 on stamps throughout the year. Combined with cutting down on the cost of checks, you’ve already saved around $200 by switching to online billing. You can also save money on gas if you have to drive to the post office to drop off your letters, and with the cost of gas always on the rise, an opportunity to save a few dollars on gas is always welcome.

Many companies also offer their customers a monthly bonus for choosing paperless billing and setting up an auto-pay feature with a valid credit card or bank account. If ten companies offer you a $3-5 dollar credit even once for signing up for paperless billing, that’s another $30-50 in savings.

Mailing back your payments every month occasionally puts you at risk of late payments. Many of us wait until the last minute to drop our payments in the mail, and when they arrive late we wind up paying a late fee during the next billing cycle. Online billing allows you to wait until the last minute, and still pay before the due date without incurring any late fees. Late fee charges can range anywhere from $25 to $30, and consistently paying late can add up over time.

They say the economy is getting better, but unfortunately most of us haven’t seen the boost yet. Every opportunity to save money is welcomed, as so many of us struggle regularly to make ends meet. On top of the financial struggle, many of us work so hard, we barely have time to sit down and budget properly. Taking a few minutes to set up automatic payments and online billing will save you time and money, and you can’t beat that!