Yahoo Finance I’m a Bank Teller: Here Are the 4 Things You’re Doing Right When Banking
Plenty has been written about what people do wrong when banking, but what habits and behaviors tell industry professionals that their customers are doing it right and getting the most out of their banking experience?
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Kimberlie McGee, head teller at Addition Financial, a credit union in Lake Mary, Florida, encounters people every day who use the system to their advantage and make their financial institution work hard to earn their business. Her savviest customers take steps to avoid fees, build their savings, utilize all available features and tools, and protect themselves and their hard-earned money from fraudsters, hackers and simple-but-costly mistakes.
Here’s how you know you’re doing it right.
You Prioritize Account Security and Guard Your Private Data
The FBI receives nearly a million cybercrime complaints per year, and the FTC reports more than a million identity theft complaints annually. Since they contain both money and sensitive personal data, bank accounts are a prime target for online criminals — and McGee likes to see customers taking steps to avoid becoming a statistic.
“I have worked with many members at our credit union who are doing things the right way when it comes to keeping their accounts secure,” she said.
According to Discover, you can stay safe by taking the following steps:
Use a different password for every account. To avoid too much complexity and confusion, choose a “base password” and build on it. Consider using a password manager, and update your passwords regularly to stay one step ahead of hackers.
Enable two-factor authentication.
Don’t connect with your bank accounts when using public Wi-Fi.
Always accept software updates.
Install ad-blockers to avoid the trap of so-called “malvertising.”
Understand and use your bank’s security features and tools.
Read Next: I’m a Bank Teller: 4 Reasons You Should Withdraw Your Savings Right Now
You Don’t Pay Avoidable Fees
McGee’s savviest customers all have one thing in common: “They know how fees are generated.”
Knowing what triggers fees is part of a winning strategy, but avoiding banks that charge them in the first place is the best strategy of all.
According to CNBC, the three biggest U.S.-based banks — Chase, Wells Fargo and Bank of America — collected $2.2 billion in overdraft fees alone in 2023, despite reducing their fees in response to consumer outrage and pressure from watchdog groups.
It’s not an anomaly.
The biggest brick-and-mortar banks typically charge the most fees and pay the lowest savings yields, while online institutions tend to offer better rates with fewer fees. Online banks like Ally, for example, charge virtually no fees — beyond the unavoidable charges associated with wire transfers — and even reimburse out-of-network ATM costs.
In the end, it’s all about reading the fine print before you choose a bank.
“This practice, along with moving funds throughout their accounts as they need them, ensures they do not overdraw or rack up unnecessary fees,” said McGee.
You Opt In for Alerts and Notifications
It’s frustrating when the many apps that populate your phone bombard you with notifications all day, so it’s tempting to opt out across the board — but when it comes to your finances, it’s better to stay in the know.
“Many members I know set up alerts on their accounts, so they’re notified of any movement in their accounts,” said McGee.
Your banking app can send you low balance alerts that can prevent overdrafts, notify you of attempted password changes or other suspicious activity, keep you informed about recent transactions, remind you about upcoming bill payments or due dates, and keep you informed about important changes to your account terms or policies.
You Keep Your Own Records and Compare Them With the Bank’s
The days of balancing your own accounts with hand-written calculations in the back of a checkbook are in the past, but McGee thinks her customers get the most out of their bank or credit union when they take an active role instead of just periodically glancing at their apps and taking what they see for granted.
“Keeping a register for their account that can be updated on a regular basis to reflect the same information in online banking is a good practice,” she said.
That means reviewing your monthly statements to ensure there aren’t any false charges, keeping a record of deposits and debits, and scouring for hidden fees or other charges and comparing what you find to what the online record shows.
Although modern banking customers can get by without paying much attention, they’ll get the most out of their accounts when they take the initiative and stay tuned in to all the activity involving their hard-earned dollars and cents.
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This article originally appeared on GOBankingRates.com: I’m a Bank Teller: Here Are the 4 Things You’re Doing Right When Banking
