Keeping Track of your Bank Transactions

One of the most important things you can do is hands-on accounting. This means keeping track of bank transactions so at any given time, you would know exactly how much money is in your account, but also where your money has gone and what charges, if any, you have experienced. Unfortunately, many people do not monitor bank activity, which quickly leads to problems.

It is actually quite common for people to have charged deducted from an account without knowledge and with this, checks are written that ultimately bounce because the account has insufficient funds. The types of fees that might hit an account without you knowing include the following:

• Overdraft Fee – This fee would be charged whenever your checking account does not have necessary funds to cover a written check. However, a great way of keeping track of your bank transactions to avoid being charged this type of fee is by setting up alerts with your bank or credit union so whenever your account reaches a set number, you would know that a deposit was needed. In addition, you could choose overdraft protection, which is commonly offered so if an account dropped to zero and a check was presented, the bank would pay the check. Depending on the financial institution, you may still be charged a fee but it would be lower than without protection.

• Monthly Maintenance Fee – Often, people will open a checking account without reading the details of what is and is not offered by the bank or credit union. In this case, you might be charged a monthly maintenance fee, which means if you do not maintain a specified balance or other requirement, you would be charged. For this, make sure you understand the contract associated with the bank account and always know the fundamentals of the account.

• Late Fee – If you have a credit card issued by your bank or credit union but the payment was not received by the due date, a late fee would ensue. Again, you would have the option in most cases to set up an alert so every month prior to the payment due date, you would be reminded. To avoid being charged a late fee, you could set up an automatic payment based on the minimum amount due. Of course, you would then want to make another payment above the minimum if possible to get the balance paid down or off as quickly as possible to save money on interest being charged.

• Over Limit Fee – If you have a minimum balance that must be maintained in your bank account or a set credit limit on a bank issued credit card but were to dip below the minimum or spend more than the maximum, an over limit fee would be charged. As mentioned, be sure you understand the requirements of your bank account and in the case of a credit card, know your credit limit. Then, we strongly recommend that you use an online service so you could keep track of your bank transactions 24-hours a day, seven days a week.

• ATM Fee – Finally, if your bank or credit union issued an ATM or debit card and you use it at your financial institution or a partner bank, you would not be charged but if you were to withdraw money from an ATM associated with a different bank or credit union, an ATM fee would be charged. The best way to avoid this fee is by using the ATM only located at your bank or credit union.

Remember, it is both your right and responsibility to keep track of your bank transactions, which puts you in more control over unnecessary spending and fees. To accomplish this, you have a number of possibilities but without doubt, using online services that today’s financial institutions provide makes tracking easier and more convenient than more traditional means. This way, you are always aware of what is happening with your money, which gives you the opportunity to notify the bank or credit union if unauthorized transactions are noted.


You should begin to understand Why Keeping Track of Your Bank Transactions is Vital