Avoid These Five Checking Account Mistakes

You can get a checking account with most banks at the age of 18. However, there are a lot of costly mistakes that you can make with checking accounts that you may not know at 18, or at any age. Here are five mistakes you should never make when it comes to your checking account.

1) Overdraft and fees: This is the biggest let down. Hidden fees and overdraft costs and empty your pockets faster than you thought possible. Many people fall down this well; don’t let it happen to you! Read the fine print when you sign up for your checking account. And think twice before you agree to overdraft protection. Yes, it will save you the embarrassment of having your card declined at the grocery store, but the fees range from $30 to $45 per transaction. That means if you bought a pack of gum and didn’t know you were in the negative, that gum just cost you the same amount as two full meals, at least!

2) Ignoring online banking: Online banking is the best thing since sliced bread. You get to see every detail of where your hard-earned money is going, and now with mobile banking, you can be apprised of your financial situation wherever and whenever you want. Ignoring this gift can get you into a lot of trouble, as many people swipe and swipe and don’t think twice about what’s left in the account. Use this tool to make sure you don’t overspend, and your wallet with thank you kindly. Not to mention you are more likely to catch fraud early on, as well as any discrepancies in your account.

3) Paying for your checking account: Checking accounts should be free! Yes, fees are skyrocketing, and finding a good bank can be a challenge, but you should not have to pay for a checking account. This includes minimum amount fees, which is a fee you have to pay if your account goes below a certain balance. Be sure to ask your banker all the in’s and out’s of what the checking account entails. If you don’t like what you hear, it’s time to find another bank!

4) Paying bills by hand: Unless you are a spectacularly organized individual, paying your bills by hand can often lead to late or missed payments. That’s another thing your online banking is good for. Setting up automatic payments ensures that your bills get paid on time, every time. Just be sure to set them to withdraw when you know you will have funds, like the day after payday.

5) Choosing the wrong bank: Choosing the wrong bank to have your checking account at can be the cause of a lot of these frequent checking account mistakes. The right bank will take care of you, and make sure that you’re checking account is hassle free and works for you.

For more information on being checking account savvy, click here!