Banking Mistakes You Shouldn’t Make
Updated: Apr 3, 2020
The following is an article “Banking Mistakes You Shouldn’t Make” by Marc Primo.
For many, if not most, banks are the best place to safeguard hard-earned money. Undeniably, there are many advantages to opening a savings account. You can earn interest, become insured, and your funds will be readily available to you when you need it. But, for those who are quite complacent in simply depositing and withdrawing money from the bank, they unknowingly subject themselves to a few hidden charges for routinary tasks such as the use of a checking account and ATM withdrawals. Worse, they can even open themselves up to fraudsters.
To maximize the benefits you get out of your bank, here are a few tips that can help you avoid the most common banking mistakes.
Review your ATM fees. Using your debit and credit card each time you eat or purchase something offers great convenience as opposed to carrying around cash. And these cards can easily retrieve you some bills when you need it via ATMs. The only thing to consider is that there will be a charge whenever you withdraw cash from an ATM that does not belong to your bank’s network. These fees may vary but on average, fees come up to $2.28 per transaction. Some banks also charge for ATM withdrawals from your checking account, so review your bank’s terms if you have one. As much as possible, walk to your own bank’s ATM even if there’s a closer one nearby. You get to sidestep bank fees, and get in some exercise while you’re at it.
Opt to visit your bank instead of going online. All of us want to do away with banking fees and the simplest thing you can do is visit your bank’s branch physically instead of going online. Think of your bank as part of your community wherein you get to meet the nice people who keep your money and interests safe. You never know, you might just get some benefits such as a waived overdraft charge if you get to be friends with the staff. Knowing your bank managers and tellers also gives you a head start if you are thinking of applying for a loan. If you have established a good impression and have a healthy credit score, then they might consider you a shoo-in for what you’re applying for.
Avoid paying overdraft fees. This one might be tricky as some people live from paycheck to paycheck. But if you have enough in your bank to get you through the month, you might want to consider avoiding incurring overdraft charges by borrowing. Reports have shown that overdraft fees can be a cause for concern to many, with over $34 billion paid by consumers last year. That’s a pretty big number which we can all avoid altogether. Overdraft fees can reach to up to $35 so make sure you keep just enough to cover your expenses. Some banks also offer overdraft protection wherein you open a savings account that can compensate your checking account when it goes dry for a smaller fee. But if you want to eliminate all charges, draft a savings plan for your monthly expenses and try to keep your income above the things you pay for.