5 Costly Checking Account Mistakes To Avoid
Checking account mistakes can be avoided as early as prior to having an account. There are many ways to prevent and avoid these costly mistakes that can destroy your business or your reputation.
If you are about to open a checking account from a bank, do not be discouraged of the possible concerns and issues that may arise. It is important to know the most common mistakes and their possible solutions in order for you to avoid them. Every responsible bank account holder is cautious and hands-on to have full control of his/her account. This is one of the keys to succeed in keeping a clean slate when it comes to checking account ownership.
Top 5 Checking Account Mistakes And How You Can Avoid Them
1. If you have a checking account that also serves as a savings account, avoid making ATM withdrawals from banks other than your own bank. There are fees for every transaction if you are withdrawing from a different bank- i.e. your bank is Citibank and you have withdrawn from HSBC. These fees can deplete your checking account in no time, thus leaving insufficient cash to fund your checks.
The fees are not reversible and usually they are higher than those of your own bank, if ever they charge you. Normally your bank will not charge a transaction fee even if you withdraw from another branch. If you can maintain not to withdraw from another bank, you will be saving hundreds of dollars in fees.
2. Issuing bouncing checks is another top checking account mistake. This occurs when there are not enough funds in your checking account causing insufficient amount of cash for the checks you have issued.
The fees that will be charged to your account can deplete your funds. Bouncing checks can also destroy your credit history.
As much as possible, if you are not sure of your own funds, you may issue post dated checks to be on the safer side. You may also get an overdraft protection for your checking account.
3. If you do not keep a balanced checkbook, you are making a big mistake. The correct equation to balance your checkbook is to subtract all your checks to your balances. Most people make the mistake of adding the checks to their balances.
Any mathematical error that involves money in general is a huge mistake. In the case of checking accounts, writing a check should deplete your balance instead of increasing its value.
4. Automatic withdrawals are also a no-no. What makes it worse is failure to monitor each auto withdrawal. You need to remember that checking accounts always need sufficient funds especially if you issue checks on a regular basis. Automatic withdrawals can incur fees that can rake your funds as well.
The best solution is to cancel all your auto withdrawals. If you can’t do this, separate this account from your checking account to avoid continuous depletion of your checking account funds.
5. Trashing your bank receipts is the final top checking account mistake that you should avoid. Even though banks use automated and savvy systems, you can never tell when system errors will occur.
Keep your bank receipts so you can compare them with your bank statements. Any error can be detected easily if you have your own reference. You will also need them during tax season.
Certificate of Deposit Rates :: Jun.12.2008 :: Checking Accounts ::