It is much easier to deposit and withdraw cash from a checking account. This type of account will allow you to access your money whenever you need it. It’s also easier to monitor your checking account thanks to online and mobile banking.
However, is it a good idea to check your bank balance frequently? Is there a need to balance your checking account monthly, weekly, daily?
All the answers to your checking account questions can be found here.
What is the purpose of keeping an eye on your account?
To balance your checking account, you need to add all of your deposits and withdrawals together and then add the overall result to your start-up balance. So, the total is supposed to tell you the current balance of your checking account.
To make sure you’re in agreement with your bank on how much money you have in your account, balancing your checking account is a must. In addition, there are other financial benefits of regularly watching your account and some of which are explained below in the article.
It helps you monitor your money
Keeping track of your finances is the greatest benefit of balancing your checking account. It is possible to plan your spending when you know how much money is in your account. Besides, you don’t have to pay bank overdraft commission when you make a withdrawal over your checking account balance.
Also, by balancing your account, you can plan your money and compile an effective budget. It’s easier to develop an efficient budget if you know what you’re spending your money on. Moreover, it can even help you reduce your expenses.
If you receive income from multiple sources, it’s also helpful to check your account frequently. It’s possible to make sure that direct deposits from your income sources come in on time, so you have enough cash flow to run your business.
It may prevent fraud
Bank account fraud is a growing problem that a lot of customers and banks deal with. Online payment platforms have made it easier for bank fraudsters to steal your money in real-time, making it harder for you to become aware of the fraud.
If you keep an eye on your checking account, you may be able to detect unauthorized transactions. Federal law protects you from unauthorized charges depending on how fast you report the transactions, so you should act quickly.
If you see an unauthorized charge on your checking account, here are a few steps to take.
Immediately report the charge to your bank
Your bank can either put a freeze on your account or advise you to close it temporarily. Federal law protects you from being held liable for unauthorized transfers if you report the loss of funds to your bank.
You have to report the fraud to the vendor. You can catch the charge before it’s posted on your account if you check your account frequently.
Furthermore, you must file a dispute with your bank or credit company within 60 days. You can do this online if you fill out a certain online form. In some cases, you may have to visit your bank and fill out the form there.
You should fill an Identity Theft Report – You can clear your account by filling an identity theft report with the FTC. The federal law enforcement agency will help you develop a recovery plan and give you letters to send to your bank or merchant to clear your account.
If you report fraudulent banking activities before charges show up on your account, you aren’t responsible for unauthorized purchases made after the report. This is stated according to the Electronic Fund Transfer Act. Your liability increases to $50 if you report the fraud within two business days after learning about it.
You are responsible for a $500 loss if you report the fraud after two days. If you report fraud more than 60 days after learning of the loss or theft, then you’re liable for all the money taken from your account.
Your liability depends on when you report a lost card or unauthorized transactions.
Be vigilant against hidden charges
A survey done by MoneyRates.com shows that the average customer pays $475 in bank fees per year. You can come up with ways to eliminate the hidden fees if you balance your account.
Overdraft fees and failure to maintain minimum balance charges can drain your checking account balance. Account maintenance fees, ATM fees, paper statement inquiry fees, and currency conversion fees are included in modern bank fees. Some banks even charge certain fees for trivial transactions, like account balance inquiry and account closing processes.
It is possible to spot hidden fees by examining your checking account. It’s a good idea to contact your bank to understand the reason for the charges. Now you will know how to avoid these charges in the future.
How can you check your bank account?
If you want to balance your checking account, you have to compare the deposits and withdrawals.
How to balance your account as explained here.
You should access the month-end account balance. This service is offered by most banks through their online or mobile platforms. You can see the check my bank account balance icon on your e-banking account, and if you click on it, you’ll be taken to your account balance on the screen. You can also use an ATM or just call your bank to check your balance. Text banking service can be used by some banks for you to receive your balance through a text message.
Make sure the items on your check register match those on your statement. If there are some missing transactions in your register, ask your bank about them.
Don’t forget to note any outstanding withdrawals or deposits that aren’t on your bank statement. You can balance your account by adding the missing deposits and subtracting the missing withdrawals. It’s a good idea to tally the amount you get with the check register amount.
If the check register amount is different, you need to find out why. Make sure to look for any errors. You should immediately contact your bank if you see any errors.
How often should you monitor your checking account?
It will cost you if you don’t check your account on a regular basis.
You decide how often you balance your account. Some people do it every month. However, if you want to be aware of fraudulent activities before they get out of hand, this may not be enough.
It is recommended that you check your account on a weekly basis. If you want to keep a close eye on your account, you can check it daily.
You should lookout for new transactions when checking your account. You also should check for any hidden fees and scheduled payments from the bank.
Change your e-banking password every four months and periodically check that your personal details haven’t been tampered with to keep your checking account secure.
Tips for keeping an eye on your checking account
There are a few ways to check your bank accounts and monitor them.
- You can use online or mobile banking to access your checking account anytime.
- If you want to be notified of any changes to your bank account balance or personal information, set up an alert.
- You can get instant information on your account by signing up for e-Statements.
- If you notice any suspicious transactions, contact your bank immediately.
- It’s a good idea to balance your account every week. By using an account monitor, you can automate the process and keep track of your account balance.
Monitoring your account can help with money management. It also helps to avoid hidden charges and stop fraud before it becomes full-blown identity theft. It’s easier to keep an eye on your account now that every bank has a mobile banking platform. Hopefully, with the help of this article, you will be able to balance your account.