Get the Most From Your Bank Account with these 10 Tips

Are you frustrated with your existing bank and financial services? Perhaps you’re facing fees, or you’re not getting enough out of your investment. If this sounds like you, a few personal banking tips like these can help:

#1: Get into the Right Type of Account

Many consumers make the mistake of not choosing the right type of bank account. Bank accounts differ by what they offer as well as their features. Compare bank accounts by function (checking features or savings benefits) and the stipulations for using those options. For example, many checking accounts exist, so if you plan to keep a significant amount of money in one, you may benefit from an interest-bearing account.

#2: Know the Fees

Besides choosing the type of account you need, you should also understand the fees involved in each. You can verify this information with the financial institution. Look for sign-up fees, account maintenance fees, and costs associated with dropping below a certain balance. Choose an account with low or no fees to save money.

If you’re unsure about fees, ask the bank or credit union for more details. You might even negotiate the fee or learn about other accounts they have without fees.

#3: Use Automatic Features Whenever Possible

Current bank accounts offer you many tools to make better money management decisions. For example, you can set up a direct deposit for your paycheck. Once your money hits your checking account, the bank might offer to automatically transfer 10 percent, or any percentage or dollar amount you choose, to a savings account. What a great automatic savings opportunity!

Not all banks offer accounts with the same features. Ask about the features you want if you don’t see any available. If the bank doesn’t provide an automated savings process, at least make sure they give you online access to your accounts, allowing you to transfer funds between them quickly.

#4: Use Features to Manage Your Money Efficiently

Personal banking accounts should provide you with a wide range of benefits, including simple things that make managing your money easier. For example, sign up for online account management. When you do, you might receive text messages or even a phone call if your account falls below a certain balance or if you overdraft your account. You might want to set up alerts to notify you when your account receives a deposit or a request for payment above a certain dollar amount. Your financial institution’s website generally allows you to manage these with ease. Many even have an app for your phone.

#5: Use Accounts to Build a Financial Lifestyle You’re Happy With

Personal banking should help you spend your money wisely, and the right bank accounts make this easier. For example, you may have a savings and checking account for everyday use. You might also have other goals you want to consider. Most banks and credit unions allow you to set up a vacation fund or accounts meant for other purposes. Having multiple connected accounts such as this makes it simple and convenient for you to transfer money wherever you want for whatever reason.

#6: Don’t Assume a High-Interest Rate Is the Best

Sometimes banks might offer what seems like a high-interest rate on their savings accounts, which sounds great until you read the fine print. They may place limitations on how much you earn, or you might not have access to the high-interest rate unless you meet specific conditions. They might also require you to maintain a particular balance or make a certain number of deposits each month.

Read through the details to ensure you have all the facts you need before choosing a bank, especially for savings accounts. Of particular importance is your need to use your savings. If you routinely pull money out of savings each month, choose a bank without fees associated with those high rates. You also need to understand other associated fees and costs with the bank’s high-interest rate that could negate any real benefit.

#7: Find Out What Else They Can Offer

Choose a bank that allows you to access the features you need, but don’t forget to consider other accounts the bank might offer. For example, selecting a bank that also provides CDs and money market accounts could make investing a bit easier.

Many banks are more likely to offer credit cards, personal loans, mortgages, or car loans to current customers who already have a checking or savings account with the bank. Some even offer better account terms (e.g. interest rates). Get to know what the bank offers to make sure their features can help you in the long term.

#8: Make Banking a Weekly Priority

Use tools offered by your bank to help make wise financial decisions. For many, that means checking your account each week and knowing how much money comes in and from where as well as how much goes out and to where. You also want to get in the habit of controlling your spending with a budget. Your bank can give you more insight into how you spend your money. Many even offer apps and account features that categorize and sort your expenses for you, leading you to make better overall decisions for your needs over time. This often includes giving you access to a breakdown of spending behaviors and even comparing them to previous months. Check such tools each week to find out how you spend and, if necessary, how to change your spending.

#9: Consider Consolidating Multiple Accounts

If you have several checking accounts at multiple financial institutions, you may want to consider simplifying your banking by consolidating them into one. This makes it easier for you to see where your money goes and to budget it properly. It also allows you to see how much money you have at any given moment. Choose the bank with the best rates and fees for your needs.

This applies to both savings and checking accounts. You may earn a higher interest rate or get a better return when you consolidate multiple accounts into one for savings, meaning more opportunities for financial growth.

#10: When You Need Help, Ask for It

Perhaps you don’t like the way your bank manages your accounts, or you want more information on how your bank processes your funds. Good customer service is the hallmark of an ideal financial institution. If you can’t decide how to invest your money or need guidance on choosing a checking account, seek out a bank with the resources to support you.

These personal banking tips highlight just a few of the ways you can improve how you invest your time in managing your accounts and making wise financial decisions. Going forward, continue to compare bank account options to find the right fit so your money will work harder and more efficiently for you.