A guide to sensible banking

Your personal account shouldn't just be the place you put your paycheck at the start of every month, only to see it emptied by bills come the end - it should be working for you.

If you are on an even keel financially, this means seeking out a checking account that offers you as much interest as possible on the balance of the account. It could also be an account that offers you extra benefits such as travel insurance or credit card protection. If you have some cash to spare, looking at setting up a regular savings account could net you a higher rate of interest. If this in no way resembles your current financial deal it's time to explore the market and see what is out there for you, because banking sensibly does not mean being blindly loyal to any establishment, or being passive in your approach to all things financial.

If you are at the other end of the spectrum and find it difficult to make ends meet, it's can be tempting to bypass any thoughts of banking whatsoever. When you know you haven’t got enough coming in, burying your head in the sand rather than details of your bank accounts seems like a more attractive option, but this is exactly the time you should be doing the opposite. Being on top of your money will help it go further by avoiding charges and identifying where you can make savings - however small. If you are rarely in the black you'll need to find an account that offers you the lowest rate possible for your monthly debit balance, to give you a fair chance of working yourself back into the black. Take the time to review your statements to see if and where you are spending money unnecessarily, add up the amount you need to pay out each month in bills and divide the remainder into a set weekly budget. If you find it very hard to live within such financial restrictions, set up a small buffer for if you overspend one week. If you do dip into it, don't be tempted to give up on your budgeting completely or you'll once again find yourself spiralling downwards and your money disappearing more quickly. There are also accounts out there specifically suited for people who are in debt or have a bad credit history, like the basic bank account. You have options, but you have to do your research first.