A question most people come upon in life is how to save. It is at this point they find themselves in need of a bank.
In Jamaica, there are a number of banks to choose from. There are also numerous account types you can open and numerous interest rates and… this list goes on forever. Here are a few banking secrets that will help you to make the most of your savings…
Banking Secrets in Jamaica
Follow these steps to make sure your hard earned dollar is making the most of it’s stay at the bank:
- If you are looking to save money without high bank charges, Building Societies (such as Jamaica National Building Society and Victoria Mutual Building Society) are better places to save as they have lower service charges.
- Commercial bank accounts usually have very low interest rates. To avoid this keep as little of your money as possible in commercial deposits and the bulk of your money in liquid assets or easily convertible assets like financial securities as they yield higher interest rates.
- The interest given by a commercial bank is less than a number of charges the bank issues so you are always losing more than you get.
- The income you earn on your savings from the bank is immediately taxed through Withholding Tax. This decreases your disposable income as the Government is paid before the end of the financial year.
- Invest into high yield bank securities or programmes as they offer a lot more benefits and income than an ordinary savings account.
- Rotate fixed deposits annually as the nature of financial instruments change from time to time and what may have been a good deal one-quarter might be less attractive the next. This is why you should not reinvest in a mature fixed deposit immediately. Find out what is the nature of the current interest market rate and then select the highest yielding deposit programme available.
When in doubt – check it out! The banking system can be very technical and difficult to understand. Keep asking questions until you understand everything that is about to or is happening to your money.