Bank Account Mistakes That Might Be Costing You Money

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Bank Account Mistakes That Might Be Costing You Money

Several common bank account mistakes can erode your savings and cost you money over time. These issues primarily stem from preventable fees, missed opportunities to earn interest, and general unawareness of the penalties.

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Paying Monthly Maintenance

Some banks charge fees for maintaining a bank account. Consider getting an account in a bank that has nil maintenance fee.

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Not Updating Your Nominee

Missing or outdated nomination creates financial delays for your family. Banks require proper nomination for easy access in case of death or otherwise.

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Paying Avoidable ATM Charges

Exceeding free ATM withdrawals triggers extra fees. Planning cash withdrawals can help reduce these costs.

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Ignoring SMS and Alert Charges

Some banks levy fees for SMS alerts. Customers often continue paying for them without checking account settings or switching to app-based alerts.

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Keeping Money in Savings Accounts Instead of FDs

Low-interest savings accounts reduce potential earnings. Short-term FDs or sweep-in accounts often offer better returns for idle funds.

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Missing Credit Card Payment Deadlines

Late fees and interest rates escalate quickly. Even one missed payment affects your credit score and raises your borrowing cost.

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Overlooking Auto-Debits

Unused subscriptions continue to charge money. Reviewing auto-debits helps avoid paying for services you no longer use.

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Not Checking Statements

Duplicate charges, failed refunds, and errors often go unnoticed. Monthly reviews ensure you catch discrepancies before they become bigger.

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Forgetting to Update KYC Details

Outdated information can freeze your account temporarily. Updating address, contact number, or ID keeps your account active and compliant.

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