I’m a Banking Expert: 4 Things You May Not Know About Your Checking Account
Written by
Laura Bogart
Edited by
Zuri Anderson
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Odds are you only really think about your checking account as that place where money goes in, and, more often than you’d like, money comes out.
You probably don’t think about it as a seed that can help deepen the root system of your overall finances — but it is. And if you use it wisely, you can allow greater wealth and security to bloom.
To learn more about the hidden aspects of your checking account, and get clearer insights about how you can use it to help grow your finances, GOBankingRates checked in with the experts.
Also consider what a bank teller had to say about withdrawing your savings right now.
You Can Have More Than One Checking Account
The common conception may be that, to paraphrase “Lord of the Rings,” there is one checking account to rule all your expenses. However, you can and frankly should, have more than one checking account to disperse your funds.
When David Fritch, expert tax strategist and former CPA, advised clients, he told them to take full advantage of their checking accounts.
“Open multiple free accounts at different banks to keep funds separate for different financial goals. Have one for essential bills, one for discretionary spending and another for saving,” he said.
You Can Use Automation to Build Good Financial Habits
Yes, you may automate your bill payments to make sure you keep your lights on and your student loans paid. But did you know that setting up automation can help you build wealth or even pay for retirement? It’s another tip Fritch offered clients.
“Automate as much as possible. Set up bill pay for recurring expenses, automatic transfers to move money between accounts, and automatic contributions to an IRA or high-yield savings account,” he said. “Out of sight, out of mind. I’ve helped many clients build wealth simply by automating good financial habits.”
You Can Earn Through Account Perks
Fritch also encouraged his clients to investigate account perks like ATM fee rebates, low- or no-interest lines of credits, as well as investment options, that help them improve their overall financial well-being.
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“One bank offers clients $500 to $1500 just for using their bill pay feature regularly. Another provides brokerage services so clients can invest cash balances,” he explained. “High-yield accounts can generate substantial interest over time through compounding. Small advantages add up.”
You Can Scrutinize Your Statements To Improve Your Budget
While many banks have protections in place, it’s still incumbent on you to regularly check your statements and charges to detect unauthorized transactions.
According to Russell Rosario, CPA, founder and CFO of Profit Leap, you still have to review bank statements regularly — and not just to make sure fraudsters aren’t using your checking account for their own ill-gotten gains.
Reading through your statements can also clue you into areas where you can improve your spending.
“Look for errors or unauthorized transactions to dispute charges promptly. Analyze expenses to reduce costs and improve budgeting,” he said. “For example, one client cut shipping fees by 15% after realizing they used premium shipping too often.”
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