Knowing what type of interest is being applied to all your accounts is extremely important. This is equally true for accounts that earn you interest, such as a bank savings account, as well as credit cards where you are assessed interest on the outstanding balance. Unfortunately, the account provider will not always be proactive in alerting customers of changes in the interest rate, so it is up to you to plan a strategy for keeping on top of the situation.
With bank accounts and other financial accounts that apply interest to your balance regularly, always take the time to review your statements and determine if some sort of change has taken place. In situations where the interest rate is dropped, this may be a sign that you should look for a new provider and consider moving your business to another firm. At the very least, it provides you with an opportunity to do some comparison-shopping, and see if your rate is still among the best available.
For credit cards, monitoring the interest rate is crucial. Since you are paying rather than receiving that interest, you want to keep those rates as low as possible. If your monthly statement indicates that the rate of interest has increased recently, this may be a sign to transfer the balance of that account to a different account that carries a lower rate of interest. In some instances, a query to the credit card provider may result in a reversal of the increase, at least for a short period of time if they believe they are about to lose your business.
In the final analysis, no one is responsible for managing your financial matters but you. When it comes to interest rates, make sure you are earning the most you can, while also paying as little as possible.
Tags: Credit Cards
