Do’s and Don’ts with Checking Accounts

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(Newswire.net — May 10, 2018) — There are a few do’s and don’ts when it comes to handling your checking account correctly. If you don’t want to have turmoil in your personal financial world or have your bank up in arms about your conduct, then you should pay attention to the following do’s and don’ts.

Do Choose the Right Account for Your Needs

Choosing the right checking account for your needs is important. When you open an online bank account, you must first make a list of the features that you’re looking for. Perhaps you need a bank that offers a mobile app for Android (not just iOS) so you can check your recent transactions more easily. Perhaps you have a larger amount that you can place in the account, but you’d like some preferential treatment like a higher interest facility in return? It’s all possible, but you need to pick the appropriate checking account to get that option.

Don’t Turn Paper Checks into Rubber Ones That Bounce

Keeping track of every check that you’ve written takes a certain amount of patience. Forgetting about the one you wrote a week ago to the supermarket and hitting up the ATM for some quick cash could turn that check into a rubber one when it bounces. When you don’t have the spare balance to clear forgotten checks or you’ve not requested overdraft protection, then every bounced check is going to get expensive really fast. It also hurts your credit rating too. If you find managing paper checks too difficult, either stop using them or leave a cash buffer in your checking account to cover the most likely extra amount needed.

Do Make Only Occasional Trips to the ATM

Hitting up the ATM for small amounts like $30 or $50 every time you start to run low on cash is a great way to see your balance get frittered away on bank fees. If you’re not careful, every transaction costing between $2 and $5 will eat away at what you have left. A $2 fee on a $30 withdrawal or a $5 fee on a $50 withdrawal from an off-network ATM saps your hard-earned money away after you worked so hard to earn it in the first place. Make occasional trips to the ATM, plan your withdrawals, and try to hit the maximum daily withdrawal limit to get the best value from the fees being charged.

Don’t Forget Your Need to Request Overdraft Protection

Overdraft protection was once automatic on checking accounts, but those days are over. If you want an overdraft facility, you must request it. The protection at least ensures that a check you’ve written won’t bounce or the debit card charge at the restaurant won’t get rejected with your date looking embarrassed for you. The fee for going overdrawn can often be $30 a time, so it’s something that should only be used to cover you against something worse.

Being aware of the do’s and don’ts of using a checking account helps avoid expensive mishaps and having unnecessary disputes with your bank. In so doing, you’ll keep more of your money and enjoy spending (or saving) it much more too.