From our Bloggers

Banking Mistakes everyone makes

Banking Mistakes everyone makes
By Karan Kapoor
People feel that they are doing the right thing, but some things that feel right could be their mistake. Here are a few banking mistakes people often make, that harm them over the bank. 
Banking might seem simple and yet it can be confusing, sometimes even making a deposit becomes a huge task if the bank is not cooperating. There are so many factors we have to analyze, but we make mistakes in them. 
  • Loyal to a current bank 
People do research whenever they buy any product. They read everything about the product, they go through their reviews, and buy it, if they do not like it, they replace it. Why not do the same thing with the bank? A bank is another product that you use, which can be changed. If you later find a better bank, why not change to the bank, it is for your benefit. If you are getting 5% interest on your savings, and 9% on any other bank, why stop? You should go for better services. You can read the reviews on BankQuality, here you get genuine customer reviews, to evaluate. 
  • Rule out Online-only Banks 
The online banks can be the future of banking, they have no branches, but they work as any bank, on an online basis. Their online interface is easy to use and the fact they do not have many branches to run, so they provide better interest rates to people. The APY of a person having an online bank account is better than the person with a conventional bank. 
  • Stay with low yielding account 
If you opened an account with a low yielding bank, you do not prefer to leave it. If you can get better yields, it is better to change the banks. 
  • Being charged with a fee for checking accounts 
Many banks nowadays are offering free checking accounts, even your bank could be offering it too, but they might ask for a fee for an upgrade, but being conventional and using the same old checking account is not good. One time upgrade could save more than keeping the upgrade money.
The details of fees are written in the small font, in the fine print. You must never forget reading it. 
  • Keeping money in checking accounts 
The checking accounts do not offer interest, and some accounts that offer it are very low, in comparison to the lowest savings account. It is one mistake people make, they miss out on the opportunity of gaining interest in the money stashed in your checking account. If all that money is stocked in a high yielding savings account to allow your money to grow. 
  • Started overdraft protection, without proper understanding 
Overdraft protection means the bank will allow you to withdraw more money from your checking account than you have, but they will charge you a fee for every transaction. The charges might apply to even the minimum amount. 
The overdraft protection increases the basic fee on every transaction. 
  • No regular check on transactions
Most people have a habit of checking their credit card statements regarding fraudulent transactions or ant transactional errors. You should also check your bank statements, regarding duplicate charges, some hidden charges, and fraudulent transactions. 
Sometimes the bank charges some money and withdraws it from your account. It may be very less, but that is something a bank should not do something without your permission to your account. A bank should be transparent.
Have you ever made such a mistake? The whole idea of this article is to spread awareness regarding some mistakes people make without knowing.
A person can insure loss, even minute loss, if we make these mistakes. A $10 loss, or call it $100. A loss is a loss.
Why incur a loss, when we can gain. 
Further Readings...