Savings Account Tips: People often set up a savings account and then forget about it. But, little oversights can cause issues down the line. Sometimes, a lot of things get missed, and those errors can weigh heavily on your finances. So, it’s crucial to steer clear of these four mistakes when handling your account.
Many folks don’t take the minimum balance requirement in their savings account seriously. But this is where the biggest fees come from. Not keeping up with the minimum balance can gradually eat away at your savings because of monthly charges. It’s a good idea to enable balance alerts and avoid draining your account.
Letting the same savings account sit untouched for years is a big blunder. Not updating your KYC can lead to the bank freezing your account. This can create issues when you want to send money, withdraw cash, or use your card. You should update your KYC and other basic info at least once a year.
A lot of people treat their ATM card, passbook, checkbook, or online banking details carelessly. Jotting down passwords or sharing them with others poses a serious risk. Fraud is everywhere these days. So, it’s not wise to take digital security lightly. Using your debit card everywhere without a second thought is also a bad practice. Entering your card info on sketchy sites, unsecured Wi-Fi, or random payment pages raises the risk. If needed, using UPI or a credit card is a safer bet.
Many individuals keep unused auto-debits or old subscriptions running in their savings accounts. These can gradually drain your balance without you even noticing. It’s essential to review your statement monthly to spot any unwanted charges and cancel them right away.
If you have multiple accounts across different banks, managing them can get tricky. Banks label accounts that sit inactive for too long as dormant, making reactivation a hassle later on. It’s better to keep only the accounts you really need and close the rest.