National nonprofit American Consumer Credit Counseling explains six important tips to manage a checking account effectively
Boston, MA – September 27, 2018
Although a checking account may seem simple to manage, it is usually the main source of a consumer’s financial activity and needs to be properly maintained. By understanding how to manage a checking account, consumers can avoid making small errors that could be costly. To help consumers, national nonprofit American Consumer Credit Counseling (ACCC) offers six tips on how to manage a checking account.
“It is important that consumers know how to manage their checking accounts to be financially stable and successful,” said Steve Trumble, President, and CEO of American Consumer Credit Counseling. “The checking account is the hub of all banking activity, so it is vital that consumers are aware of their balance, so they avoid over drafting.”
According to a survey by ValuePenguin, 71 percent of consumers use online banking, and 43 percent use mobile banking. Of those that use mobile banking, 94 percent use it to check their account balance or recent transactions, followed by 58 percent who use it to transfer money, 56 percent who use it to receive alerts, 48 who percent use it to deposit a check with their mobile camera, 47 who percent use it to pay bills, and 36 percent who use it to track the closest ATM.
ACCC explains six tips on managing a checking account.
- Know the balance – Be sure to use the bank’s phone app, online banking login, or take a trip to the ATM weekly to ensure you are always aware of the balance in your checking account.
- Direct deposit – Utilize automation and set up direct deposit, so your paycheck is immediately accessible in your account. Explore automatic bill pay through your checking account as well to ensure there are no missed payments.
- Online alerts – Set up online alerts for when your account reaches a certain amount. These alerts will help you avoid over drafting.
- Balance checkbook – Balancing your checkbook helps ensure your checking account balance matches your records. Be sure to record all dates and the amount that was deposited or withdrawn.
- Overdraft protection – It is usually best to opt out of overdraft protection. With overdraft protection, banks will cover the charge, usually up to a certain amount, so the transaction is not declined. This type of protection comes with a hefty fee. If a person with overdraft protection has $3 in their checking account and writes a check for $6, the bank will cover the $3 difference but charge an overdraft fee that could be as high as $25 or more.
- Bank ATMs – Avoid using out of network ATMs, so you don’t get stuck paying withdrawal fees.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling, and student loan counseling call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit https://www.consumercredit.com/debt-resources-tools/