As you start your professional life, you have to create a salary account, fixed accounts, savings account, and a lot more. For a newbie, banking can seem like a lot of work and a complicated process. You have to deal with a lot of paperwork, deal with bank managers, update your bank books, and a lot more. This can easily lead to banking mistakes.
Below you would find some of the most common banking mistakes, including facing issues while going for the best savings investments, deposition and withdrawing money, and a lot more.
Nowadays, most individuals have been resorting to online payment as it is not only convenient, but you do not have to run to the bank to withdraw cash every time. For monthly payments, including loans, the electric bill, water bill, and others, you could go for an automated payment option. This way, you will never be late, and you never have to pay any penalties.
However, make sure you are always monitoring your automated payment options. Check whether your account is overdrawn or not, as bills could vary each month. Another vital benefit? You become a conscious citizen by turning green by not opting for paper bills every month. Save money on bill payment envelopes as well as stamps.
This is one of the biggest mistakes you make, that is, keeping your savings alongside your checking account under the same bank. Using your savings money can seem tempting to meet your purchase and luxury expectations. However, when you have two different accounts in two different banks, transferring money can seem tedious. Again, splitting them up, you get to choose the most reliable and profitable savings as well as a checking account.
If you have already made this mistake, rectify it, close one of the accounts and look for schemes in a different bank.
While going for higher interest rates for savings might seem like a satisfying option, jumping to another bank when the present bank interest is lower is not always a wise idea. Rather than running after banks that promise you higher interest rates, look for banking schemes that match your requirements depending on the financial condition and your age.
If you have already made those mistakes, then stop further from pursuing higher rates. Stick with the bank you are with already. Focus on what your bank is charging you rather than seeking the highest interest rates.
This is a common mistake where you do not really go through the fine print of the documents, and while it might take time, not reading might cause major issues later. Reading the fine print carefully, you can find any loopholes that the banks have creatively tried to hide.
First and foremost, get a better understanding of your account’s fee structure. This you can easily find on the bank website. Whenever any change is announced by the bank regarding rates, you might have to think of switching banks. If you have already made that mistake, look into other best savings plans and take your money elsewhere. Some banks could then waive fees to hold on to their long-term customers.
This is another major mistake you could end up making where you pay an amount just for checking. Free checking is offered by most of the banks, and if one is asking for a minimal fee, it is time to take your business somewhere else. It is important to know what you can do in case you are burdened with a sudden charge for checking.
If you have already made that mistake, ensure you look for other options and compare different banks to find one which offers you a free checking account. Again, you could call your present bank and ask if you could change your account into a free one by going for direct deposit.
Not Monitoring Your Account Transactions
You have to be thorough with your transaction history — keep track of how much you are putting and withdrawing from your accounts. According to surveys, one in five customers never goes through their transaction history. However, being aware of your transaction, you can find out discrepancies earlier and avoid major issues later.
It should be incorporated within your habit to check your transaction history at least once every two weeks, if not every week. Look out for charges that seem suspicious to you and talk to bank officials. You can keep track of your transaction history through various mobile apps, which could also help you manage your expenses well.
Never leave your online payment accounts vulnerable and set a strong password by making them random so that they cannot be easily linked to you. Wrapping up, these are some of the most common banking mistakes you might have been making all along. There is still time; therefore, make sure to protect your banking accounts by learning from these mistakes and taking professional help.