YinYang / Getty Images
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
According to the Federal Deposit Insurance Corporation (FDIC), approximately 95.5% of Americans have a checking or savings account — or both — at a credit union or a bank. Having a bank account comes with its share of advantages, such as FDIC insurance, accessibility, convenience, fewer fees compared to non-banking services and an array of other financial services.
Despite so many people having bank accounts, though, many people do things with their accounts that end up costing them money or time.
GOBankingRates spoke with Arielle Torres, an assistant branch manager at Addition Financial Credit Union, to find out the top things customers do that hurt their accounts. Here’s what she said.
They Don’t Monitor Their Accounts
According to Torres, one of the biggest things customers do that hurts their bank accounts is they don’t monitor their accounts on a consistent basis. Ideally, you’ll be checking yours daily or weekly.
Monitoring your personal accounts is vital for many reasons. Not only can it help you keep track of your spending throughout the month, but it can also make it easier to spot suspicious or unauthorized transactions, which could be a sign of fraud.
According to the FTC’s Consumer Sentinel Network, there were over 5.4 million reports of fraud in 2023. About 19% were due to identity theft. The most common types of identity theft included bank account and credit card fraud.
Monitoring your accounts has the added benefit of making it easier to manage bank fees. If, for example, your balance drops below the required minimum, you could get hit with a minimum balance or maintenance fee. Banks will generally waive these fees if you keep your balance above the threshold.
They Refuse To Speak With Banking Personnel
Torres said many customers won’t speak with bank personnel to verify that they have the product that best suits their financial needs. There are quite a few types of accounts, even among savings accounts. This includes traditional savings accounts, high-yield savings accounts, certificates of deposit (CDs and money market accounts.
When you choose the wrong type of account, you could be missing out on quite a few benefits — like higher yields on your account balance. You also could face fees you could have otherwise avoided. In some cases, the wrong banking product could limit your access to your money or pose other restrictions — such as how frequently you can make withdrawals or transfers.
While you can open an account at most banks online these days, it’s still a good idea to reach out to the team at least once. That way, you’ll know exactly what your options are and you can make an informed decision.
They Overdraw on Their Account Balance
Something else that ends up costing banking customers money is overdrawing their accounts.
“Over drafting their account … leads to courtesy pay fees and NSF fees,” Torres said.
According to the Consumer Financial Protection Bureau (CFPB), the average NSF — non-sufficient fund — fee is $34. While many banks have gotten rid of these fees from their checking accounts, others still have them.
There are a few ways to avoid these fees. One option is to set up overdraft protection, which sometimes comes with its own fee — generally a fixed amount. Another is to connect your checking and savings accounts so that, if you do overdraw from one, the funds from the other will automatically cover it.
They Don’t Follow the Account Rules
Torres said many customers fail to follow the account stipulations — “such as not maintaining a specified balance or not utilizing the account as specified.”
Make your money work for you
Get the latest news on investing, money, and more with our free newsletter.
By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time.
You're Subscribed!
Check your inbox for more details.
This can be problematic in several ways. Letting your account drop below the minimum balance requirement can increase the risk of overdrawing on that account — as well as lead to potential overdraft or NSF fees.
Some bank accounts are also restricted. You might be limited to a maximum number of withdrawals or transfers, for example. Or you might be able to take out only a set amount of cash from the ATM per day. Knowing these rules can save you headache and potentially money.
They Don’t Take Advantage of the Account Features
“Another common thing we see is people not utilizing the features on their account, such as mobile deposits, mobile transfers and bill pay,” Torres said. “[This] causes them to waste time going into a branch.”
Many financial institutions also offer things like:
- Buckets to organize and track your savings and expenses
- Real-time text notifications that let you monitor your account and any transactions
- Financial records and receipts for tax-keeping purposes
- Fraud protection and fraud alerts
- Online bill pay and transfers between accounts (internal and external)
- Free budgeting and savings tools
- Automatic withdrawals from your checking to your savings account
- Fee waivers (under certain circ*mstances)
While it’s ultimately up to the individual which services and tools they use, these features can add a lot of value to your account — something that’s potentially even more important if you’re paying a fee to keep the account open.
More From GOBankingRates
- In Less Than a Decade, You Won't Be Able To Afford Homes in These 20 Arizona ZIP Codes
- These 10 Used Cars Will Last Longer Than an Average New Vehicle
- 5 Signs You're the Financially Savvy One of the Group
- 5 Myths About Debt That Nobody Should Believe in 2024
