Opening up a checking account and savings account at your local bank or credit union isn’t particularly difficult. The process is usually quite straightforward, and a bank representative will walk you through each step along the way. Even if you set up a new account online, the process probably won’t take more than a few minutes.
But once you have your account, you need to pay more attention to it. In particular, you need to avoid the common banking mistakes that can trip up many individuals.
Here are some of the most common banking mistakes that some people make, and how you can recognize (and avoid) them.
Not Paying Attention to Your Account Type. Some people don’t pay close enough attention to the type of account that they have, and whether it’s a good fit for their needs. For example, many checking accounts have tiered pricing structures such that accounts with a higher balance requirement often have additional benefits that come with it. This means that if you maintain a balance that would always meet the requirements of the next higher tier of account, you may be giving up benefits by keeping your business in the lower level account.
Not Paying Attention to Bank Fees. It’s also important to understand how and when your bank charges fees on the accounts that you have. Are you subject to a monthly fee if your balance falls below a certain amount? Does your account type involve a separate charge for using a bill pay service? Are you limited to a certain number of transactions each month? You may already be on the lookout for these types of banking fees, but there are an increasing number that some banks are now beginning to levy additional types of charges on their customers.
For example, some banks now charge a fee to transact business with a live teller. The goal is to reduce the bank’s costs by having more customers banked through ATMs and online. But if you’re not aware of this type of charge, it can end up costing you if you don’t modify your behavior accordingly.
Not Paying Attention to Financial Penalties. Keep in mind that it’s not just recurring fees that are a potential issue. Having even a single lapse in your account record keeping could result in a penalty for something like a bounced check (and “insufficient funds” charge).
Not Paying Attention to Your Account Balances. Another common banking mistake is not paying close enough attention to how much you have in each of your accounts. Even if you avoid unexpected bank fees and charges, remember that you could also face fees and charges from the vendors and people you’re trying to pay from your account if your balance is too low.
Not Taking Advantage of Everything Your Bank Has to Offer. Finally, not all banking mistakes involve having to pay too much in banking fees or penalties. It can also be a mistake to miss out on an opportunity to save money.
Stay on guard against the common banking mistakes listed above in order to keep yourself on the best financial course forward.
Tags: bank fees, Banking Advice, checking account
This entry was posted
on Wednesday, January 8th, 2014 at 3:19 pm and is filed under Checking.
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