Most people think that choosing the right checking account is the most important thing when opening a checking account, but what they don’t know is that what matters most is knowing how to manage it once it becomes operational. Neglecting it or making mistakes can be very costly. The differences can be easily spotted between a checking account and a savings account. While a savings account earns you interest and has minimal fees, a checking account has minimal or no interest but has high fees. With a few tricks, you can manage your checking account diligently so that you can keep fees down and protect your account. Besides that, it will also help you manage your finances more smoothly.
Here are 5 tricks to managing your checking accounts:
1. Monitor the Schedule of Automatic Transactions
The first secret to efficiently managing your checking account is to keep accurate tabs and understand automatic billing on your checking account. Besides that, knowing the billing cycle will ensure that you don’t make withdrawals just before bills come in.
2. Balance Your Account Regularly
It’s important to check your checking account records against the bank’s records at least once per month. It’s the best way to spot any unauthorized transactions or unexpected fees that you haven’t authorized on your account. Additionally, always ensure that all transactions to and from your account are correctly entered in your account.
3. Monitor Interest Rates
Although most checking accounts have minimal or no interest rates, some checking accounts have interest rates. If you choose to open an interest-bearing checking account, always check to see if you are getting the interest rates expected from the account. If the rates keep decreasing, then you need to find a better alternative.
4. Look Before You Swipe
Most people prefer debit cards over credit cards since they only allow you to spend what you have in your account; however, they can quickly get you in trouble. If you make several purchases in one day, you need to be sure that the balance in your account can cover your next purchase. Therefore, before you swipe your card, always ensure you double-check your balance to see if it’s running low.
5. Check Out Overdraft Protection
Overdraft protection can be well worth your while if you are worried about being overdrawn. Just be sure to review the fees involved.