Most people open a savings account but don’t monitor it properly. Minor negligence can lead to significant financial losses over time. Therefore, it’s important to understand that a savings account isn’t just a place to store money, but a financial tool that needs to be managed responsibly.
Minimum Balance
Banks have set a minimum balance requirement for every savings account. People often take this rule lightly and leave the account nearly empty. As soon as the balance falls below the set limit, a penalty is deducted month after month. These deductions gradually add up to a significant amount. To avoid this, never allow your account to reach zero balance, and always keep the balance alert on.
Not Updating KYC
Many people don’t update their savings account for years and keep postponing KYC. According to bank regulations, failing to complete KYC on time results in the account being frozen. When an account is frozen, it becomes difficult to withdraw, send, or use your debit card. Therefore, it’s important to update your KYC and personal information at least once a year.
Negligence with Passwords or Banking Information
It’s crucial to keep your ATM card, passbook, checkbook, and net banking information secure. Many people write down passwords on their mobile phones or share them with others. Digital fraud is rampant today. Even the slightest carelessness can lead to money disappearing from your account. Keep your passwords strong, don’t share them with anyone, and never share information over unsecured links or calls.
Cards on Unsecured Sites or Wi-Fi
Using your debit card everywhere is unsafe. Entering card information on suspicious websites, unsecured Wi-Fi networks, or unknown payment pages poses a significant risk. These platforms pose a higher risk of data theft. Where possible, it’s best to use secure UPI apps, and credit cards are considered safer for online transactions.
Auto-Debits and Old Subscriptions
Over time, people subscribe to numerous apps, services, and platforms and then forget to cancel them. These unnecessary auto-debits quietly reduce their balance each month. If bank statements are not regularly reviewed, these expenses may go unnoticed. By checking statements once a month, unwanted subscriptions can be easily canceled.
Having Multiple Bank Accounts
Many people open multiple savings accounts in different banks but fail to use them properly. Bank accounts that remain inactive for a long time become dormant, which can be time-consuming and hassle-free to activate. Therefore, it’s best to keep only as many accounts as necessary and close the rest.
