Confessions of a Bank Teller: 5 Customer Habits That Can Damage Their Accounts
According to the Federal Deposit Insurance Corporation (FDIC), about 95.5% of Americans have a checking or savings account, or both, at a credit union or a bank. Having a bank account offers several benefits, like FDIC insurance, accessibility, convenience, lower fees compared to non-banking services, and a range of other financial services.
Even though many people have bank accounts, they often make mistakes that cost them money or time. GOBankingRates talked to Arielle Torres, an assistant branch manager at Addition Financial Credit Union, to find out the top mistakes customers make with their accounts.
They Don’t Monitor Their Accounts
One of the biggest mistakes, according to Torres, is not regularly monitoring their accounts. Ideally, you should check your accounts daily or weekly. Keeping an eye on your accounts helps you track your spending and quickly spot any suspicious or unauthorized transactions, which could indicate fraud. In 2023, the FTC’s Consumer Sentinel Network reported over 5.4 million cases of fraud, with about 19% related to identity theft, including bank account and credit card fraud.
Regular monitoring also helps you manage bank fees. For example, if your balance drops below the required minimum, you might get hit with a maintenance fee. Banks often waive these fees if you keep your balance above the required threshold.
They Avoid Talking to Bank Personnel
Torres mentioned that many customers avoid speaking with bank personnel to ensure they have the right account for their needs. There are various types of accounts, even within savings accounts, such as traditional savings accounts, high-yield savings accounts, certificates of deposit (CDs), and money market accounts.
Choosing the wrong type of account can mean missing out on benefits like higher yields on your balance. It can also lead to unnecessary fees and restrictions on accessing your money or the frequency of withdrawals or transfers. While you can open an account online, it’s still a good idea to talk to the bank staff at least once to understand your options and make an informed decision.
They Overdraw Their Accounts
Another common mistake is overdrawing their accounts, which leads to courtesy pay fees and non-sufficient fund (NSF) fees. According to the Consumer Financial Protection Bureau (CFPB), the average NSF fee is $34. While many banks have eliminated these fees, some still charge them.
To avoid these fees, you can set up overdraft protection, which may come with a fixed fee, or link your checking and savings accounts so that funds from one can cover overdrafts in the other.
They Ignore Account Rules
Torres noted that many customers don’t follow the account rules, such as maintaining a specified balance or using the account as required. This can lead to additional fees and other issues.