3 banking mistakes to avoid like the plague of 2023

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All of these things have the potential to kick yourself.

The money you have in the bank is most likely not money that was deposited in the bank by winning the lottery or by chance. Rather, it is money earned by working hard, and in addition, there may be a side job.

That’s why it’s so important to pay close attention to your bank account and take the time to review it. It’s also important to avoid these big mistakes in 2023 and in general.

The interest rates you earn on savings accounts or CDs can vary greatly from bank to bank. Even if your bank seems to be paying a lot of interest, it’s worth doing some research and seeing what other banks are paying. especially these days.

A year or so ago, this advice would have been really useless. At the time, the banks were paying very little interest, so in a year it made little sense for him to take the time to earn $0.72 in interest.

But these days, banks are paying more interest. For example, you can easily find interest rates in the 3% range for high-yield savings accounts and 4% range for CDs. So if your bank pays 3.2% on regular savings and you have a bank there that pays 3.7%, that’s a big difference.

2. Payment of overdraft fees in a checking account

More and more banks are eliminating overdraft fees, which can be costly. However, some banks continue to charge for overdrafts on checking accounts. If so, I suggest you consider making the switch or managing your money carefully.

You can avoid overdraft fees simply by making sure you have enough money in your checking account to cover your purchases. You may be able to avoid losses due to

3. Don’t plan for CDs that are due

If you put money into CD in 2022, it could be mature in 2023 (i.e. if you choose a 6 or 12 month term). Some banks automatically roll back expired CDs to new CDs of the same term if you do nothing. But that’s not necessarily what you want to do with your own money, so make the decision yourself instead of letting your bank tell you so.

You may decide that you don’t want to roll back a mature CD to a new CD because you want more flexibility with your money. Or you may find that another bank offers a much better CD rate. Either way, it’s important not to just sit back and let the CD roll over automatically.

Mistakes happen. But these three in particular could have negative financial implications for 2023 and beyond. Therefore, it is a good idea to avoid them at all costs.