Managing your bank account is a multi-layered process that allows you to safeguard your funds and earn interest. Here are four things you should do for efficient banking management:
1. Monitor Your Balance
Regularly tracking your balance offers multiple benefits. It encourages thoughtful spending and prevents overdrafts. Your mobile application allows you to view detailed descriptions of each transaction. This is excellent for budget control and financial planning.
Safety is of utmost importance in efficient banking management. Check your account at least once or twice a week. If you spot any fraudulent or unauthorized transactions, call your bank immediately. You can also set mobile alerts to be notified every time you make a transaction.
2. Know How to Avoid Fees
Both checking and savings accounts come with a range of fees, which can quickly pile up. Here’s a quick rundown of common bank fees and how you can avoid them:
Monthly Maintenance: A monthly maintenance fee is charged for administrative tasks, such as processing transactions and keeping records. You can avoid this by maintaining a minimum balance in your account. Many banks waive this fee if you do a certain number of direct deposits or transactions on average.
Overdraft Fee: This fee is charged when your checking account doesn’t have enough balance to cover a payment request. The best way to avoid this is to double-check your account balance before making a greater-than-usual payment. If you happen to overdraft your account, make sure you settle it as soon as possible, as it can damage your banking history.
ATM Fee: It is charged when you use an ATM outside your bank’s network. Always use ATMs within your bank network or from partner networks. You can also limit ATM use by making check deposits and online transfers.
Foreign Transactions: Additional fees are charged for international transactions or purchases. To minimize this, compare exchange rates on different platforms. You can also get a specialized multi-currency card from your bank.
3. Know Your Bank’s Policies and Processing Time
Having a clear understanding of your bank’s policies can save you from unnecessary stress. In addition to the standard operating fees, understand the payment processing time.
The time for check deposits, wire transfers, and card transactions depends upon the amount, deposit time, and individual bank policies. Check your bank’s official website to find out how long does a check take to clear. Read a detailed guide on check clearance by SoFi for improved understanding.
Domestic wire transfers are processed by 5 PM ET. In comparison, international wire transfers are usually processed after 5 PM ET.
4. Build an Emergency Fund
Emergency funds act as a safety net during unforeseen financial circumstances. This includes medical emergencies, unexpected home repairs, or job loss. Explore savings accounts and certificate of deposit (CD) accounts to grow your money over time.
Set ambitious yet realistic goals. Make regular contributions to your savings accounts and only use the money for emergencies. With planning and patience, you can reap the benefits of efficient banking management.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
