How to Choose the Right Bank Account for Your Insurance Premiums
There are many aspects of life that people want to set and forget. For a handful of people, paying their monthly insurance premiums tops that list.
While doing this task won’t take more than five minutes of your day per month, it’s still a chore that takes up space on your to-do list.
Fortunately, banking institutions are well aware of the general sentiment surrounding bill payments. Their response? Design a banking system that simplifies the insurance premium paying experience.
Many modern banks have made account management simpler for users with features such as automatic debits, real-time alerts, and fee waivers, enhancing the user experience.
That said, banks offer bank account features in vastly different packages. How would you know which bank account is right for your needs?
In this article, we’ll break down what to look for when choosing a bank account for your insurance premiums. Let’s jump right into it.
1. Connect Your Bank Account to Mobile
If you don’t have a mobile bank account yet, then make it a priority to create one—and fast. You’re missing out on a world of convenience by ignoring the features present in an official mobile bank account.
Most major banks have an associated banking app meant for users to monitor and manage their bank accounts through their phones. Download these apps on your smartphone’s respective application store and sign up for a bank account. Learn more about how to open a bank account online.
You will have to provide personal details like a government ID and monthly income. Once approved, you can start depositing, withdrawing, and accessing the various features that the bank app provides.
If you already have a bank account from a banking provider, then you may skip the steps above and simply connect the account number to the bank’s official app. This way, you can access your balance and monitor transactions in real time on your phone.
Having mobile banking access allows you to perform a variety of banking tasks that you otherwise couldn’t do unless you go to a physical branch.
What this means for you is that you can pay for your insurance premiums and other bills in the comfort of your home with a phone in hand.
2. Prioritise Bank Accounts With Auto-Debit Features
Before choosing a banking partner, narrow your options to one which has both a smartphone app and an auto-debit feature.
Auto-debiting features in a banking app are a fantastic time-saver for busy individuals. This feature allows you to automatically pay for bills, including your insurance premiums, at pre-determined intervals.
This feature can be customised based on your preferred timing. For instance, you can have payments set so that your bank will transfer an exact amount on the last day of every month.
This feature is great as it eliminates the need for you to manually schedule your insurance premium payments. Most modern banks allow you to set recurring payments, along with confirmation messages and notifications.
Adulthood requires you to manage and juggle multiple bills. Auto-debiting features allow you to handle these bills with ease, whether they’re your insurance premium or your utility bills.
3. Choose A Bank With No Security Risks
When managing recurring payments, you should prioritise a bank that is known for its tight security measures. In Australia, this means looking for banks that are licensed and regulated by government authorities, such as the APRA (Australian Prudential Regulation Authority).
Furthermore, it’s also important to choose a bank that has adequate coverage in case of bankruptcy. Australian citizens should ideally pick a bank that’s covered by the Financial Claims Scheme (FCS), which guarantees deposits up to $250,000. This protects your finances in case the bank you’re using goes under.
Besides vetting the bank’s internal security and track record, you should also assess the bank’s digital toolset. Select a bank that has an app with multi-factor authentication and real-time fraud detection systems. This helps prevent suspicious activity from happening or alerts you when something fishy is going on.
By choosing a bank with robust cybersecurity measures, you can focus on optimising features that make banking more convenient—like automating your insurance premium payments.
4. Gather Customer Reviews
Before selecting a bank account for your financial needs, it’s wise to look at comprehensive reviews of the bank before making a commitment.
You can find many blog reviews of banks online, which are typically written by a financial professional. Alternatively, you can also find a collection of genuine user reviews from websites like Trustpilot and ProductReview.
Both these types of reviews highlight the bank app’s features, as well as the fees and general quality of the services provided by the bank. Besides looking at website reviews, you can also ask people within the community about their experience with their bank of choice.
Take the time to interview others about their experience with a bank provider you may be eyeing. Your friends, your colleagues, or your neighbours are great starters. These people have first-hand experience of the banking system and can help you understand the bank in a deeper light.
By gathering insights, you’ll have a deeper understanding of the reliability of the bank in conducting its services. Furthermore, you can also gain more knowledge on a bank’s ability to help you pay your insurance premiums more conveniently, thus narrowing the options to the best bank for your needs.
5. Choose Low-Fee Banking Options
When selecting a bank account for your insurance premium payments, prioritise one with low or no fees. This allows you to save more over time and avoid unnecessary charges that can chip away at your balance.
Some (not all) bank accounts charge users for recurring fees, alongside miscellaneous activities like interbank transfers and not meeting monthly account minimums.
It’s important for you to pick banks that waive fees to ensure that your wealth stays with you. Fortunately, most major Australian banks waive fees if you meet certain conditions, so picking one should be easy as long as you read the fine print.
In any case, make sure the bank account you choose doesn’t charge you for setting up automatic payments. Also, watch out for things like insufficient funds fees or interbank transfer charges. Some no-fee, recurring payment accounts sound great upfront but can eat up your money in other ways—so double-check that you’re convincingly saving money.
By being thorough with your bank account provider, you can save a lot of money in the long term while still enjoying the benefits of an auto-debited insurance payment scheme.
