From depositing checks to making payments to keeping tabs on daily transactions, you can think of your checking account as your central financial hub. Understanding how to tap into its features and tools can help you track your spending and manage your finances more conveniently.
Let’s review some simple points to help you manage your checking account.
Understand the basics of your checking account
Your checking account is often the main bank account for your day-to-day financial transactions. You use it to make deposits or withdrawals, pay bills and manage your overall spending. You can also set up electronic transfers, known as direct deposits, for your paychecks and any other income.
Checking accounts usually come with a debit card that you can use to make purchases or take out money at ATMs. Additionally, many banks offer online and mobile banking options for your checking account, which can be useful for setting up fraud alerts and transferring money between accounts.
Keep track of your account activity
One of the most useful features of a checking account is its ability to help you keep track of spending and transactions. Regularly monitoring your account can be done either online or through a mobile banking app on your phone.
Make a regular habit of reviewing your checking account’s activity and balance. Look over your monthly statements and assess whether your spending aligns with your personal and financial goals. If need be, pinpoint where to cut back on overspending.
Use tools to manage your checking account effectively
In addition to keeping a record of your transactions, there are other tools available to help make managing your checking account as easy as possible:
- Balance alerts: You may be able to set up automated text or email alerts about your bank balance, particularly when it falls too low. That way, you can be made aware of new deposits or large withdrawals over a certain amount.
- Wire transfers: You can send and receive money from other bank accounts, provided you have the necessary account information.
- Automated payments: You can also set up automatic payments for regular bills and transfers from your checking to a savings account. This can help you stick to a budget, save more and may help avoid paying maintenance fees and overdraft charges.
- Fraud alerts: Fraud alerts are another important feature that can alert you to abnormal charges on your debit card or suspicious account activity. This typically involves sending you an alert via email or phone if there’s an unusual charge or withdrawal made from your account. You can look at your account activity to verify, or you can contact your bank’s customer service to learn more.
Understand fees and avoid unnecessary charges
When it comes to checking accounts, there are a couple of common fees to consider:
Maintenance Fees
Some banks may charge monthly maintenance fees, which could depend on how much money you have in your account or whether you use the account regularly.
Overdraft fees
Overdraft fees may occur when your account has a negative balance. It’s important to learn about how your bank handles overdraft charges and what impact unpaid overdraft balances may have to a credit score.
You can also check if your bank uses overdraft protection, which means they can automatically take money from a linked savings account to cover the overdrawn amount.
Always make sure to understand these fees when opening any checking account. Your bank will provide you with information upon opening the account so that you can get a clear understanding of when and how these fees are applied. Once the account is in use, you should keep track of your current balance and spending to ensure you can avoid unnecessary charges.
Maintain your financial health with good habits
A well-managed and monitored checking account can help you track your everyday spending, maintain your finances and make the most of your money. By understanding and using the available tools to manage your account properly, you can stay on track and make progress toward your financial goals.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
