6 Reasons Not to Ignore Your Bank Statement
Digital banking has made it easier to do many things—pay bills, view your balance, make purchases and remote deposits. Even with all these improvements to your banking experience, some users still forget about balancing their accounts.
Many people feel that the text transaction alerts or emails they get from their credit union or bank above a certain amount—like, say $50 or $25—are enough. However, they may be missing smaller fees that don’t trigger a notification. Using your digital or printed bank statement to reconcile your account provides you with a much more accurate financial picture.
Here are the top six reasons why you should check your bank statement regularly:
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Spot fraudulent activity on your account early
Log in to your online banking site or mobile app daily or weekly to quickly identify fraud. If you’re just looking at the balance and not checking each transaction, it’s possible to miss an unauthorized charge. Often, fraudsters will make a small debit just to see if the account is legitimate. If it goes through, they know they’ve got access to an active account.
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Avoid bank fees
If you rarely review your accounts, you may be unaware of how much you’re spending in fees. Things like minimum balance fees and checking fees can often be avoided by taking one or more simple actions each month. While account requirements vary, Mountain America only requires one of the following each month: make at least $1,000 in direct deposits, perform 10 debit and/or credit card transactions or maintain an average daily balance of $2,500. Check with your financial institution to see how these fees may be waived for you.
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Catch a missed payment faster
Sometimes, you make a payment (either by mail or online) and, for some reason, it doesn’t get credited to your account correctly, or you may even forget to make the payment altogether. You may not realize something is amiss until you receive your next bill. However, if you make it a habit to check your bank statement regularly, you may be able to avoid a late charge and possible damage to your credit score.
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Fix errors
No matter how much we utilize technology, errors can still occur. A transaction can be recorded in the wrong amount or, even though you cancelled that Netflix subscription, the recurring charges continue to appear on your statement. The sooner you know about errors like this, the sooner you can get it corrected.
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Keep track of rate increases
Got a great low rate on your new credit card? Sometimes, it’s an introductory rate that will increase after six months or a year. It’s important to know when that happens. If you aren’t tracking the date, you may be surprised—but your bank statement is a great place to catch it.
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Access important tax information
Your bank statement contains important information you may need to validate taxes paid or deductions taken. Think charitable donations, tax payments and business or medical expenses.
If you have a formal budget in place, you may not need to review your statements as regularly because you’ll likely be checking your accounts more often. However, if you don’t follow a budget, this may be the best way to track your spending and income.
