Most people have made a few banking mistakes throughout their lifetime, whether it is a check that has long been forgotten about clearing at the worst time, automatic debits coming out on time but without the necessary funds in the bank, or a minor mathematical error that causes a high overdraft fee to be drained from an account.

 

To save money, and increase banking security, avoid these top 10 banking mistakes:

 

 1    Not Reading Your Monthly Statement

 

Read your monthly statement and compare it to your receipts. An even better habit is to check your banking account online daily. The sooner you catch an error, the easier it may be to correct it. Keeping track of your transactions helps you to catch your own mistakes and any errors made by the financial institution or the merchants you have used.

 

 2    Paying High Fees or Bank Charges

 

Shop around before deciding on a bank to make sure that you do not pay unnecessary fees or charges. Banking is a competitive market, and what may be free at one bank may not be free at another. Know the services you need, and then find the bank that can perform the most transactions for free or with little cost.

 

 3    Carelessness with Banking Paperwork

 

When banking in person, always be aware of any papers or documents containing your personal information. Don’t throw away a bank slip with your information on it without first tearing it up. Better yet, take it home and shred it or keep it with your personal files in a safe place. Make sure you have your driver’s license and/or debit card with you when you leave.

 

 4    Banking Online in Public

 

Just because you can get internet service at your local coffee shop doesn’t mean you should use that internet service. Many Wi-Fi systems offered in public places are not as secure as the hub you have at home. While the bank site may be secure, the internet connection may not be.

 

 5    Endorsing Checks Prior to Going to the Bank

 

If an endorsed check is lost or stolen, it could possibly be cashed by someone else. Wait until you get inside the bank to endorse a check. You can also write “for deposit only” on the check.

 

 6    Failing to Take Precautions at the ATM

 

ATMs are a great convenience, but make sure to be safe and secure when using them. Don’t write down your pin number and carry it with you. Don’t leave the ATM area with a large amount of cash in your hand if it’s a walk-up ATM. Don’t let someone see you enter your pin number. Make sure to take your debit card and your receipt (if requested) with you, and always be aware of your surroundings, especially at night.

 

 7    Using an Easy Password for Your Pin

 

Don’t use an easy-to-guess number combination, like your birthday. Using a less common date or a number combination that is not easy to guess (unlike, for instance, “abc123”), and changing your pin regularly are security measures you can take.

 

 8    Leaving Your Bank Account Numbers for Others to See

 

Doing your banking at work may be convenient for you, but use caution when doing so. Be sure to lock away your banking materials, clear the cache on your computer, and shred any papers you are throwing away.

 

 9    Not Knowing Your Local Bank

 

The more you know the employees of your local bank, and the better they know you, the more they may be willing to offer you low rates or take care of problems quickly if they arise. It doesn’t take much more than simple kindness to start a relationship with your banker, and calling to get the banker’s advice on financial matters also shows that you value his or her opinion.

 

 10    Assuming You Must Borrow Only from Your Bank

 

Thanks to the highly commercial and competitive nature of the banking industry, borrowing from a different bank than the one at which your checking account is located can help you to secure a better deal.

 

To do some comparisons on bank fees, charges, and services, check out these popular banking institutions:

 

• Chase: www.chase.com
• Citibank: www.citibank.com
• PricewaterhouseCoopers: www.pwc.com