Checking accounts are the Swiss Army knives of financial tools. They offer a safe, convenient way to track your income and expenses, pay your bills, and stick to your budget.
While you can use your checking account to enroll in payroll direct deposit and schedule recurring bill payments, you shouldn't set it and forget it.
Use your checking account to the fullest and keep your finances on track by avoiding these five mistakes.
Mistake 1: Not keeping a checking account buffer
Expenses like utilities, fuel and groceries can vary from month to month. If your income and expenses are pretty similar, spending a few dollars more in each category could leave your account in the negative. That shortage could lead to payments bouncing or being declined by your bank. If at all possible, have a buffer. Keeping some extra cash in your account that is not designated for a specific expense can give you some peace of mind. And, could save you from paying unexpected fees.
This buffer acts like insurance against early or unexpected withdrawals from your account. Look at your monthly expenses to determine the buffer amount that works best for your situation. Start by keeping an extra $50 in your account, with the goal of building up to one full paycheck.
Mistake 2: Not keeping an eye on checking account transactions
The Bank of Missouri has robust fraud monitoring in place for your debit card transactions and notifies you when there is suspected fraud. Still, a scammer might be able to do damage that automatic monitoring cannot detect. If you don't monitor your checking account regularly, you might learn about fraudulent activity only after the damage has been done.
Take advantage of your bank’s digital offerings to keep a close eye on your account. Bank of Missouri customers can enroll on our website or download our app to get started.
From there, you can sign up for transaction alerts for further protection.
Check your transactions regularly. If you see any transactions you don't recognize, report the incident to a banking representative immediately.
Mistake 3: Failing to keep your debit card safe
You’ll want to take steps to protect your debit card. In the wrong hands, it can be used to make purchases before you realize it's stolen. Keep your debit card safe by adding it to your phone's mobile wallet. This contactless payment method ensures your account number isn't shared when you pay for your transaction. Instead, a unique number is generated to process each payment, providing more protection for your debit card details. Bonus, you don’t have to get your card out. Just tap and pay with your phone.
And if you think your card may be missing or has been used for fraud, act quickly to lock it down. We make this easy at The Bank of Missouri. When you’re logged in to your account, look for the card management tile on your dashboard. Select your card to report it as lost or stolen or to temporarily freeze it. Or, access 24/7 self-service at 888-547-6541.
Mistake 4: Treating your checking account like a savings account
Depositing money into an FDIC secured account is one of the safest ways to build your emergency fund. These accounts are insured up to $250,000. But keeping your savings and checking funds in the same account can slow your savings progress. It's too easy to spend money earmarked for savings when you use one account for multiple purposes.
Clearly see your progress toward achieving your financial goals by maintaining a savings account that's separate from your checking account. If both accounts are at the same institution, you can instantly transfer funds between accounts if you need to.
After setting up your savings account, it’s time to think about paying yourself first. Figure out how much you can consistently save each month, then automate it by sending part of your paycheck directly into savings.
Mistake 5: Not taking advantage of checking account benefits and special perks
Have you explored all the ways your checking account could save you time and money? If you only focus on the basics, like deposits and bill payments, you might miss out on some of the benefits and perks of account ownership.
The Bank of Missouri offers free rewards checking accounts to match your financial goals. Choose from cash back, digital credits, or earn higher interest on balances with Kasasa® checking.
Keep more money in your account by avoiding these common mistakes and by selecting the right checking account for your needs. Visit the checking accounts page to learn more or open an account today.