Many a time, you might not know all the features that go with checking accounts as banks don’t share all the details or don’t tell you about hidden fees, charges, or conditions attached.

Apart from that, customers often get complacent about their checking accounts, simply because they’ve had them for years. Many people opened their first checking account as a student and used it through college and their working years, without giving much thought to updating themselves on any new features and facilities. Having said that, financial advisors or banks can give handy tips for optimizing your checking account.

Mistakes you can easily avoid
You could be making mistakes that cost you a significant amount every month, but these simple errors can easily be avoided. Here’s a list of the most common errors with regard to checking accounts, along with how to avoid them to optimize your account:

• Not staying on top of the balance available in your account
  This is especially risky if you’ve opted for direct/auto-pay facilities as overdraft charges can be exorbitant and can affect your credit history if you have large unpaid dues. An effective tip for optimizing your checking account is to keep a tab on your balance and ensure that you make payments accordingly.
• Not scouting around for free checking accounts
  Premium banks tend to charge high fees if you don’t keep a minimum balance in your checking account, but this feature can be avoided by opening a checking account with a credit union that offers free accounts. Many might get their first accounts just because their parents opened it for them in their parents’ bank. Instead of doing that, shopping around for better rates, features, and facilities is a helpful tip for optimizing your checking account.
• Not going through your statement regularly
  Many people simply ignore the routine bank statements sent to their mailboxes. Doing this can be risky, especially when certain businesses put a hold on your account due to non-payment of dues. You could also miss out on noticing fraudulent transactions/charges, so go through your statement regularly so that any problem you have to report is in sync with the latest statement.
• Keeping excessive funds in your account
  Checking accounts are primarily useful because of their liquidity and quick access to funds. They don’t offer attractive interest rates in general. So, it’s a mistake to dump all your available funds into a checking account, even if it’s to ensure that you stay above the minimum balance requirement. It’s smarter to be aware of the regular monthly out-go and keep a little more than that in your checking account. For any additional amount, you can get better interest rates in your savings account.
• Making unsafe transactions
  With online shopping gaining popularity, many use their checking accounts to pay for purchases made online. However, if the payment portal is not secure, you could end up losing a lot of money by using the debit card that’s linked to your checking account. So, it’s wiser to use your credit card for online shopping.