7 Banking Blunders To Watch Out For
Sometimes, saving money means knowing what to avoid. Read about seven common banking mistakes that can quickly siphon your savings if you’re not paying attention.
Whether you’re a financial expert or just someone trying to stick to their household budget, errors can happen. Some may even end up costing you money. Luckily, some of the most common blunders are simple to fix and only require minor adjustments. To improve your financial health, here are seven common mistakes to avoid:
Not checking your bank account regularly
First thing in the morning, many people are conditioned to automatically pick up their phones. Whether they are checking emails, texts or social media, it just becomes a habit. While you’re at it, why not add bank accounts to the list? Getting in the habit of conducting a daily check of your bank accounts will help you keep an eye on your account balances and credit usage. Additionally, it’s a convenient time to make sure there have been no unauthorized or fraudulent charges.
Paying a monthly maintenance fee
Some financial institutions charge maintenance fees on certain types of accounts. In some cases, you can waive this fee by completing a specific action like keeping a minimum balance. Check with your bank or credit union to find out if they charge a maintenance fee and how to waive it.
Paying ATM fees
Although you may make most of your purchases online or with your credit or debit card, some people like to keep a little bit of cash on hand. When withdrawing money from an ATM, ensure you’re using one within your financial institution’s network. If you’re not sure, Mountain America Credit Union provides a map to find partner ATMs and branch locations near you so you can plan ahead.
Paying overdraft fees
As mentioned in the first item on our list, checking your account balances regularly will also help you avoid the frustration of bounced checks and declined debit card transactions. If you have planned expenses or automatic monthly bill payments, check your balance before those charges hit your account—it can go a long way to saving you money.
Need extra help? Mountain America offers options for overdraft coverage to help ensure your checking and everyday debit card transactions clear in the event your account balance is running low. It provides security by covering debit transactions, checks and automatic bill payments. Be aware that you must opt in for the coverage.
Leaving online accounts vulnerable to fraud
Unfortunately, with the convenience of online banking comes plenty of fraudsters whose singular goal is to steal your money. To make sure your bank account and information are protected, use a strong, unique password and change it often. Even if your account hasn’t been compromised, it’s a smart idea to change your password every couple of months just to be safe. Learn more ways to protect yourself from scams and fraud.
Buying a vehicle without checking rates at your financial institution
When in the market for a new set of wheels, in all the excitement—doing research and taking test drives—sometimes we forget to shop around for the best interest rate. Many times, financial institutions offer lower rates than dealerships. Even a slightly lower rate could save you a significant amount of money over the life of the loan. Make sure to get preapproved before you head out to the car lot for the best deal on your auto loan.
Not visiting your local branch
With so many online banking options, sometimes we think we may never have to step foot into a branch again. However, getting to know the employees at your local branch is one of the best things you can do to improve your finances. Not only is it a great way to make connections—seeing a friendly face in the branch is always nice—they are also financial professionals who can review your accounts and make informed suggestions to save you money. Mountain America offers many financial education resources to help you reach your goals.
These common banking blunders can sometimes fly under the radar because they require constant review. Just remember, every dollar you save in unnecessary fees is another step closer to achieving your financial goals. For more tips on managing your finances, meet with a financial guide for free at Mountain America or check out our must reads blog page.
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