Skip to main content

Make the most of your checking account – and minimize costs

It’s hard to reap all the benefits of a checking account until you begin to see it as the powerful financial tool it can be. You can take advantage of your bank’s technology and other resources to use this account to manage, grow, and protect your money.

Let’s review some tips on how to make the most of your checking account features:

Set up online and mobile banking

Many checking accounts offer digital tools designed to make banking faster and more convenient. Here’s how to make them work for you:

  1. Set up mobile banking. With a mobile app, you can use your smartphone or tablet to deposit checks, pay bills, transfer money between your accounts, send money to friends, view your account activity and more. Your bank’s app might also allow you to add a debit or credit card to your Apple Pay, Samsung Pay or Google Pay digital wallet for contactless payments in-store or in-app. Mobile apps and online banking services typically are available 24/7 and are free

  2. Enable account alerts. Your bank may allow you to set up alerts to receive a text or email if there is unusual activity on your account or if it is at risk of dropping below the designated balance threshold. Some banks also allow you to set up customizable notifications according to your daily banking needs

  3. Use budgeting and tracking features. Checking accounts generate a great deal of data, and digital banking can put your data to work for you. Your online and mobile banking services might help you categorize expenses, create budgets, track transactions, set savings goals, analyze spending, and more—all to help you manage your money effectively

How to avoid fees by managing your account strategically

Banks might charge a variety of checking accounts fees, but they often provide ways to avoid them. Here are three ways to avoid fees:

  1. Maintain required minimum balance. Many checking accounts require customers to maintain an average or daily balance to avoid a monthly fee. You could look for low or no minimum balance checking accounts to minimize or eliminate those fees. Research online or talk with your local financial institution to find the right account. Banks also might offer other options for avoiding a monthly maintenance fee, such as making a certain level of direct deposits or maintaining a balance in a related account

  2. Only use an in-network ATM. When you choose a bank pay attention to its ATM network. Does it have branches and ATM machines near your home, place of work, and other places you travel to regularly?  Some banks don't charge ATM fees when you use machines in their network, but you could pay a fee for using out-of-network machines

  3. Review overdraft protection. Overdraft protection gives you options for when you don't have enough funds in your checking account to cover all transactions. It might automatically cover a shortfall by transferring money from a linked account (like savings) or extending a small line of credit. There may be fees, but overdraft protection could allow you to avoid declined transactions and possibly higher returned check fees from merchants, and make sure important payments like rent or utilities are paid on time

Automate your money

Banks make it easy to use automation to save time and control your finances. You might also have access to services like:

  1. Setting up direct deposit with your employer. Having your paycheck deposited directly into your checking account is convenient and gives you faster access to funds. You might also have the options of getting access to your pay early and of using direct deposit to send money into different accounts—like savings

  2. Using automatic bill payment. This service helps you pay monthly bills on time with no effort or need to remember when payments are due. Some businesses will give you a discount if you use autopay for their bills

  3. Transferring funds from one account to another. This practice is a good way to boost your savings. Your bank might allow you to set up a monthly transfer of a predetermined amount from checking to savings

  4. Rounding up programs. These programs can take different forms. For example, banks might allow you to transfer a small amount into savings for each qualifying payment from your checking account. Or they might round up the change from each debit card purchase and put it into your savings account

Maximize account perks and benefits

Some checking accounts come with extra benefits, so be sure to familiarize yourself with the options available for your account. Here are a few things to look for to help make the most of your checking account:

  1. Linking checking and savings accounts. Linking accounts could help you avoid monthly maintenance fees and make it easier to build your savings through automated transfers

  2. Interest bearing checking accounts. Here's how this type of account typically works: in exchange for meeting certain requirements, such as keeping a higher monthly balance, the bank will pay you interest on that balance

  3. Security features. Many banks offer services to help protect you if the debit card attached to your checking account is lost or stolen. You might be able to use a mobile app or online banking portal to put a lock on your card. Other similar services include photo ID, chip technology, and monitoring for unusual purchases

Monitor your account regularly

When it comes to your checking account, ignorance is not bliss. It’s important to monitor it and many banks make that process easy with mobile apps and online banking services. Here are some good habits to form for staying on top of your finances:

  1. Review transactions weekly. This practice can help manage your cash flow, stay on budget, and avoid overdrafts by catching pending transactions that haven't been posted yet

  2. Track your spending trends. Keeping track of the way you spend money can help you notice impulse spending triggers and monitor progress on spending and savings goals

  3. Review your statement every month. A regular review of your statement can help you notice unfamiliar transactions, catch subscription services that are no longer in use, identify free trials that converted to paid services, and flag services that can be cancelled before they auto-renew

This article is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.

*By clicking on this link, you are leaving our website and entering a third-party website over which we have no control.

Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of third-party sites hyper-linked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third party sites.

Third party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.

Have a question? Find answers here

Popular Questions