Accounts, cards & overdraft done right
Your accounts are the foundation of your finances. Tidying them up and avoiding a costly overdraft often saves more than many a savings plan.
- Check your current account: what does it cost per year, and does the plan still fit?
- Move an emergency fund to a separate instant-access savings account — available any time, kept apart from daily spending.
- Avoid or clear the overdraft: a running negative balance averages around 11% a year (often 10–14%), pricier than most other debt.
- Close old, unused accounts and cards — fewer accounts mean fewer fees and a clearer view.
What matters
A common mistake is letting the overdraft creep in like a second income: first €200 in the red, then a permanent €800 — and interest keeps ticking every single day. At 12% a year, staying €1,000 overdrawn costs around €120 a year for nothing in return. People also often overlook that going beyond the agreed overdraft is charged at an even higher rate — around 13% a year on average. A second blind spot is credit cards with revolving balances: it feels convenient but is effectively an ongoing loan at steep interest. And account fees add up — €8 a month is nearly €100 a year for something some providers offer free. A clear separation helps: a current account for daily life, savings for your buffer, and the overdraft at zero wherever you can.