Delay Paying That Bill

Wednesday, September 03, 2008 | , | 0 comments »

In the last post you read how by using credit card you could earn money. Credit card companies are essentially giving you an interest free loan on your expenses for the month. At the same time, your money is earning interest. This makes using credit cards profitable.

The same holds true for all bills. Never pay a bill before its due date. Doing so reduces the amount of time that your money could earn interest in your savings account. However, if you are late paying your bill the penalty fees could destroy your savings.

So it is recommended that you always pay the full amount of your bill three business days in advance. The first day is necessary for your bank to process your transaction, the second day for the billing company is process your transaction, and the third day is a safety buffer.

This online interest calculator, from Bank of Montreal, calculates the amount of money you will earn on a daily basis by paying your bill just before the due date.