Checking accounts are resourceful tools for depositing income, managing bills, and monitoring spending habits. Advanced features make it easy for customers to do everything from balancing their budget to pay their bills in a timely fashion. As great as these financial resources are, however, mistakes are commonly made that end up costing account holders way more than they bargained for. Avoiding these mistakes at all costs, therefore, is necessary.
Choosing the Wrong Account
There are hundreds of banks and checking accounts for consumers to invest in. However, like any other product or service, not all accounts are created equally. One of the most common mistakes people make, therefore, is choosing the wrong account.
Opting for checking accounts with monthly fees, balance minimums, and limited financial management features take money out of your pocket each month. When searching for the best checking account, it is imperative to do comparisons to see which bank is willing to give you the most bang for your buck.
Not Having Enough in the Account
Though things sometimes happen in life that requires you to dip into your accounts to use funds budgeted for other expenses, not having enough cash in your checking account can backfire really quickly. Not only does this mean that bills aren’t paid in a timely fashion, but account holders also incur insufficient fund fees every time the account is debited for more than it actually holds.
For many customers, this ends up putting them in a financial hole they’re not able to get out of. If the habit continues, they could have their accounts closed and be unable to open new ones. That’s why it’s important to make sure that you keep enough money in your account to cover all of your expenses. If you’re short on cash one day, you may be better off applying for bad credit installment loans. This would at least put cash in your account in one business day until you’re able to repay the loan.
Using Out of Network ATMs
It’s great that you’re able to secure cash when you need it without having to visit a bank to do it. ATM cards are commonly given out to checking account holders for just that reason. Be that as it may, most banks will charge customers a fee when they use ATM machines that are outside of the network. The fee ranges, and while it may seem like just a few bucks to pay for convenience, they can really add up. Not to mention, most out of network machines also charge a fee to use their system. Even at a rate of $2, doing this ten times in a month could cost you $20 or $40.
Short of keeping your cash stashed under your bed or hidden in canisters on the kitchen counter, checking accounts are resourceful financial tools to have. If you’re going to take advantage of all these bank accounts have to offer, however, it is important to manage it properly. Making any of the above-mentioned mistakes could cost you more than you realize.