5 Ways to Manage Your Checking Account

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5 ways to manage your checking account responsibly

October 12, 2021

Whether you're a new checking account owner or if you just want to brush up on your money management tools, it's important to manage the account correctly. The FDIC estimates that 124.2 million American households had at least one member with a bank account, but not everyone is getting the most out of them. Let's look at some of the best tips and tricks to get you started on the path to success.

Be aware of your balance

Because checking accounts were created to make transactions easier and often come with a debit card and checks, it's not difficult to lose track of how much money you have in your account. You can set alerts with an updated balance when money is spent and use available technology to stay on top of it.

Consolidate accounts

Some people have several checking accounts that they have accumulated over the years but consolidating them could yield many benefits. This is an easy way to simplify your finances and can make money management easier. Having your finances spread across several checking accounts is unnecessary and can overcomplicate the process. Pick the most beneficial account and discuss your options with a banking professional to find the best one for you.

Be mindful of fees

Some checking accounts have higher maintenance fees than others but being aware of them is key. Most of the time, it would make sense to go with a standard checking account that has low or no fees.

Other fees to be conscious of include any that could be charged if your account balance falls below $0. In addition, if you withdraw money from your checking account through an ATM that doesn't belong to your bank, you may be charged a fee for the process. Communicate with your financial institution and be mindful of possible fees associated with checking accounts.

Review statements from your bank

Every month, you should receive a statement from your bank that lists your spending and banking activity from that time frame. Whether you opt for a paper statement or an electronic one, it can be easy to let the mail fall to the wayside. However, if you keep track of your banking statements, it can be easier to watch your spending habits. This is also where changes in your minimum balance requirement, fees, or other account terms are often noted, so reading your bank statements is more valuable than you may think.

Automate

Automation is an often undervalued or underused tool for checking account owners. Direct deposit is one example of automation that can be extremely valuable. In addition, most financial institutions including The Federal Savings Bank offer mobile check deposit options. Connect your bill payments to your checking account for a streamlined payment experience. Automation tools are available to elevate your checking account usage, so why not use them?

Article courtesy of The Federal Savings Bank