Learn 7 tips to manage your checking account

While a checking account is an essential and straightforward component of your finances, its ease of use can lead to complacency. For example, when was the last time you asked yourself, “What are some ways I can better manage my bank account?”

If you last used it a while ago, you may miss out on time- and money-saving features. Weiss believes proactive management can help you get the most out of your account rather than waiting on the sidelines. Consider the following seven suggestions for managing your checking account effectively to go from inactive to proactive:

1. Make use of automation

Automating your finances is one of the simplest methods to manage your checking account and save time. Consider setting up direct deposit with your company, so your paycheck is automatically deposited into your checking account.

You can set up automatic transfers from checking to savings, allowing you to save for crucial goals without having to remember each month or paycheck (bonus: you won’t be tempted to splurge instead of saving).

Another suggestion for managing your checking account is to set up bill pay so that your monthly bills are automatically deducted from your account. “The online bill pay feature saves you from having to create checks, pay for postage, and take the time to mail the check,” explains Ryan Inman, a physician financial adviser.

Because some businesses impose processing fees for credit card payments, Inman suggests sending bill payments from your checking account or having the company take funds directly from your account.

2. Understand your equilibrium

“Whether you’re using budgeting software or the bank’s app, you always want to know how much money you have in your account,” Weiss adds. By entering your account online or visiting an ATM, you can also check your balance and modify your checking account.

Knowing how much money you have available will help you plan for impending expenses, avoid fees, and keep better track of your budget and expenditures. Keeping a constant eye on your balance is not only an excellent method to manage your checking account, but it is also a good strategy to secure your account.

A sudden drop in your balance or strange activity could be signs of fraud. Reporting possibly fraudulent behavior to your bank as soon as possible may assist limit your responsibility and protect your account from further theft.