Banking 101: Going back to basics

Have you forgotten the fundamentals of banking? How to manage your checking account? If so, follow these simple behaviors and you will succeed in keeping track of your activity and balances on your account.

• Keep track of your spending: Log your checking account transactions into your check register immediately so that you do not forget that they are pending. Always log your purchases that you make with your debit card because sometimes depending on your bank's system; you won't see these withdrawn from your account right away. Signature based purchases can take a couple of business days to post. Many people make the mistake of checking their balance via the telephone or atm before making a withdrawal and disregard the pending transaction that has not hit the account. This will in fact cause an overdraft in your account if you do not leave enough money to cover for pending transactions.

• Review your activity: The best way to do this is with online banking because you get real time information on your account. Check it frequently, making sure that your purchase receipts matched the amounts posted to your account. If you discover an unauthorized transaction, make sure you report it immediately to your bank and do not wait because the bank only has certain amount of days to get your money back, generally 60 days for unauthorized ACH/debit card disputes. I recommend you do this 2-3 times a week.

• Balance your check book: You want to make sure that all your debits and credits match your checkbook with your statement. If everything that you logged in your checkbook matches your monthly statement, then you should be ok. If not, then again, you will want to go item by item to make sure that all amounts match. With so many ways to check your account, on line banking, atm, telephone banking, mobile banking, this should be a snap and you don't even have to wait for your statement. In fact, I recommend you GO GREEN and sign up for E-Statements. This way you save trees and just get an email notification to your inbox notifying you that your statement is ready to be viewed through your on line banking site.
  

• Pay Bills On Line: If you don't think this is the greatest invention then you're crazy!! (wait maybe I'm crazy..)I know many people still have their reserves about on line bill pay, however with the technology in force today and the encryption methods that secure websites have in place, it's safer than you think. I've been using on line bill pay since as far as I can remember and I can't imagine banking without it.
  

1. you save money on postage and checks
   
2. the bill is paid generally within 2 business days
3. you save time, you log on, and click a few times and you're done
4. you can even pay your rent, babysitter or send a check to a relative. If the party you are paying does not accept electronic payments then the bank will cut a check in your name and mail it out for free.
5. it's secure, the less checks you write, the less likely you are to identity theft

On line bill pay should be free, safe, easy to manage and convenient.