Here’s How To Manage an Online Checking Account

Your checking account is the starting point from where your finances move. Money first comes into your account and then you decide how and where it will be spent. While the online checking account is undoubtedly a simple yet significant component of your personal finances, the simplicity it offers can also make you complacent. When was the last time you thought about managing your online checking account properly? If you haven’t thought about this, then you can be missing out on some great features that can save you time and money. Rather than just sitting on the sidelines, it is better for you to become proactive and manage your checking account properly to get the most benefits.

How to Manage an Online Checking Account?

Are you wondering how to manage your online checking account? Here are some of the best tips that can help you out:

Go with automation

One of the easiest ways of managing your online checking account and saving your time is to simply automate your finances. You can get your salary deposited directly into your account. There is also the option of setting up automatic transfers from checking account to savings, which helps you save without needing to remember every month. Setting up bill pay is also convenient because this ensures that all your bills are paid from your account automatically and on time. There are companies that deduct charges when you pay via credit card. In such situations, sending payments from your checking account or having them deduct them directly from your account can eliminate these charges.

Stay up to date about your balance

Whether you decide to use the bank’s app or choose to set up alerts with a budgeting software, you should have an idea of how much money you have in your online checking account. You can simply log into your account online or visit the ATM for checking the balance. When you know how much money is available in your online checking account, it will be easier to avoid fees, plan for any upcoming expenses or bills and monitor your spending and budget in a better way.

Also checking the balance doesn’t just help in managing an online checking account; it is also useful for protecting it. Any suspicious activity in your account or a sudden drop in your balance could be an indication of fraud. You can limit your liability and also secure your account against more theft by reporting any fraudulent activity quickly.

Check the mobile app linked to an online checking account

Getting familiar with the app linked with the online checking account is another useful tip for managing it. Not only does the mobile app let you check your balance on the go, it can also be helpful in managing your account by letting you pay your bills, review account activity and deposit checks.

Embrace any potential earnings associated with an online checking account

Managing an online checking account is made easier when extra money is deposited into your account. It also helps your budget because you have more money to save or spend. Furthermore, extra money also enables you to earn extra rewards or interest. Some banks let you earn cash back on your purchases while others offer high interest rates on the funds in your checking account.

Avoid paying fees

Obviously, no one likes to pay bank fees. You would want to pay as little as possible in the form of fee. Luckily, there are ways to manage online checking account that also let you avoid paying bank fees. One of the easiest ways to go about it is to open an online checking account that doesn’t charge you any monthly fee for maintenance, no matter what your account balance or activity may be. Apart from that, banks are also known to charge fee when the debit card connected to online checking account is used for withdrawing cash from certain ATMs.

It is a good idea to know which ATMs don’t have any withdrawal cost associated with them so you only use those. Another important fact to remember is that there is also a fee associated with overdrafts. Overdrafts occur when a transaction causes the balance of your online checking account below zero. Other fees you need to be aware of include those associated with stopping payments, sending wires and ordering checks.

Think about consolidating

Lots of people tend to maintain multiple checking accounts. It can be easier for people to monitor and manage their finances when they consolidate all their accounts and stick to just one online checking account. When everything is in one account, you can easily see how much money you have, when you get it and how it is spent. When you are maintaining multiple checking accounts, it can be very difficult to track your money and it can take up a lot of your time. You will have to remember login information of every account, along with passwords and other data, which takes up a lot of time. Also, there is fee associated with every account. Hence, it is better to consolidate everything into a single online checking account.

Decide where to keep any extra money

As long as you are managing an online checking account well, it is an excellent place for you to store money for your regular spending. This can include entertainment, transportation-related expenses, food and also your regular monthly bills. However, if you are interested in long-term and intermediate savings, a different type of bank account might be more appealing to you. The money that you leave in an online checking account needs to have a purpose. Otherwise, there is no shortage of other account options out there.

These are some of the best tips that can be immensely beneficial for people who want to know how to managing an online checking account. They can help you maximize the benefits of this account type and keep costs at a minimum.