Monthly bill payments can get overwhelming, especially when there are too many to close on the same day. However, thanks to technological advancements and the digital banking systems in place, you can now pay your bills on time every month with just a bit of planning.
A Savings Account allows you to set up automatic payments for your regular monthly payments, such as electricity, water, gas and internet bills or insurance, and EMIs.
By automating these payments, you adopt a systematic approach that saves you time and helps you avoid late fees. It also helps maintain a clear record of all your transactions and makes it easier to manage your monthly budget.
How to get started with automated payments using a Savings Account
To start automating your monthly bill payments, you first need to open a Savings Account. As a first-timer, you can explore and open an Online Zero Balance Account, as it does not include a minimum balance mandate.
Once your account is active, follow the steps below to get started automating your monthly bill payments.
Provide standing instructions
For amounts that remain constant each month, such as EMIs, rent or house maintenance, use standing instructions (SIs). With SI, your fixed transfers are auto-debited from your account. This saves a lot of time and effort, as you no longer need to track and make monthly payments before the due date.
Link utility bills
For utility bills, first register them on the Bharat Bill Payment System using your bank’s mobile app. Once done, you can pay for your gas, water and electricity bills using automatic transfers from your Savings Account. Check the account information and give the go-ahead for automatic payments to ensure your bills are always paid on time without any extra effort.
Schedule insurance and loan payments
Add your insurance premiums, loan EMIs and subscription services to your auto-payment list, set the amount and date for each payment, and authorise the e-mandate to pay them on time automatically.
Track transactions
Track your account regularly via mobile banking alerts or SMS notifications to know if and when each automatic payment is completed. If any payment fails, contact your bank immediately. Tracking transactions helps you stay in control and prevents errors from going unnoticed.
Pro Tip: Set up your auto-debit mandates with a buffer of 3-5 days from your salary date to ensure that a slight delay in the salary does not incur late fees for any payments.
Benefits of automating bills with a Savings Account
Automating your payments through a Savings Account offers several advantages, including:
Ensures timely payments
Automatic payments ensure bills are paid on time, helping you avoid late fees, service interruptions and a negative impact on your credit history. This also directly impacts your CIBIL score, which can help you with more affordable loans in the future.
Simplifies expense tracking
When all recurring payments go through a single account, it is easy to see how much you spend each month. This way, you can also make any necessary adjustments to your expenses.
Reduces manual effort
Once you set up auto-debits, your bank handles everything, so you don’t need to log into multiple websites or write cheques every month. Moreover, you can always pause or cancel your auto-debits if and when needed using your bank’s mobile app.
Supports financial planning
With all recurring payments recorded in one account, you can better understand your monthly cash flow, making it easier to save, invest and plan for unexpected expenses.
Conclusion
Using a Savings Account to automate your monthly bills is a simple way to stay organised and avoid late payments. By setting up standing instructions and auto-debits for your bank account, you can manage utilities, subscriptions and EMIs without manually tracking every due date.
Open a bank account that fits your needs to take control of your finances. This makes bill payments easier and more organised each month.