How much money should I keep in my checking account?

What is a payment account?

A payment account is a non-term deposit account opened at a bank to use payment services provided by the bank such as money transfer, withdrawal, bill payment...

With a payment account, customers can transact with a limit of up to 100 million VND/month for a regular account or 600 million VND/month for a Priority account, depending on the regulations of each bank.

How much money should I keep in my checking account?

Payment accounts are opened for the purpose of payment and spending. Payment accounts are very flexible, you can deposit and withdraw money regularly. However, the interest rate on deposits in payment accounts is very low, usually only about 0.1% to 1% depending on the bank.

Therefore, you should not keep too much money in your checking account, as this will not be beneficial. Customers should only keep enough balance to pay for monthly expenses such as electricity, water, phone top-up, food, tuition, etc.

In addition, customers should have a contingency fund for unexpected expenses. Depending on income, this reserve can be equivalent to at least one month's salary or more.

Financial experts also advise users not to keep too much money in their payment accounts because card information theft scams are becoming more and more sophisticated. If unlucky, the cardholder's assets can be lost.

How to protect money in your checking account

Because there is always a certain amount of money in the payment account, protecting the money in the payment account is always a concern for customers. Therefore, to keep the money in the payment account safe, users need to pay attention to the following issues:

- Fully understand the payment features of the card attached to the account. When paying at a restaurant, you should not give the card to the staff to swipe for you. Instead, you should swipe the card directly to ensure that the card information is not disclosed.

- You should withdraw money at the bank's ATM, and follow the instructions for safe withdrawal at ATMs.

- When entering the PIN, make sure no one or camera can see it.

- Sign up for balance change notification services to always receive the latest information about account transactions.

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