8 Mistakes to Avoid When Choosing a Bank Account

Finding the best place to keep your money plays a big role in your financial well-being. The right account allows you to avoid unnecessary fees, earn some extra interest, and reach your funds quickly whenever the need arises. Many people overlook simple details and end up losing out through common missteps. With a little attention to these pitfalls, you can hold on to more of your earnings and feel secure about how you manage your finances. Making informed decisions about where you store your money sets you up for greater peace of mind and gives you more control over your day-to-day spending.

Below are eight mistakes people often make when selecting a checking or savings account. Each tip provides specific actions you can take right now.

Mistake #1: Overlooking Monthly or Annual Fees

Many banks charge maintenance fees that quietly reduce your balance. Ignoring these charges leaves you with less spending money and slows your progress toward bigger goals.

• Monthly maintenance fee: $5–$15
• Annual service fee: $20–$50
• Paper statement fee: $2–$5 per month
• ATM surcharge fee: $2–$5 per withdrawal

Ask banks if they will waive fees when you set up direct deposit or keep a minimum balance. If you rarely maintain high balances, look for accounts that have no fees at online banks or credit unions.

When you compare fee schedules, read the fine print. Sometimes banks waive fees for a limited time. Confirm whether any offers expire after a few months.

Mistake #2: Ignoring ATM Access and Network Coverage

Standing in front of a locked ATM can turn into an expensive surprise. You may have to pay both an out-of-network fee and a surcharge from the ATM’s owner.

1. Fee-free ATMs: Provided by your bank’s network
2. In-network ATM: No surcharge but may charge a usage fee
3. Out-of-network ATM: You pay two fees per transaction
4. Partner ATMs: Other banks waive their surcharge

Download a bank’s ATM locator app or view its website map. Check coverage in places you visit often, like campus, work, or grocery stores. When you travel, look for partner networks to avoid those surprise fees.

You can also withdraw cash back at many stores without ATM fees. If you shop regularly, this strategy helps you skip ATM lines and charges.

Mistake #3: Neglecting Interest Rates and Rewards Programs

Putting money in a low-interest account rarely helps you grow your savings. Even a small difference in annual percentage yield (APY) adds up over time.

Look for high-yield savings accounts or checking accounts that offer cash back on purchases. Some digital banks advertise APYs above 2% on savings balances, compared with under 0.1% at larger brick-and-mortar banks.

Make sure to verify any requirements to earn the advertised rates. If you need to hit a monthly spending target or keep a minimum balance, confirm you can meet those conditions. If not, you might never see the perks materialize.

Mistake #4: Missing Out on Digital Banking Features

Strong mobile apps and online platforms became essential long ago. Without basic tools, you might struggle to track your spending, deposit checks, or transfer funds quickly.

Look for features such as mobile check deposit, real-time transaction alerts, bill pay, and card controls. Some banks let you lock your debit card with a tap or set spending limits.

Read user reviews in your phone’s app store. A poorly rated app can cause missed alerts, login problems, or delayed transfers. You deserve a smooth experience when you check your balance on the go.

Mistake #5: Underestimating Customer Service and Support

When technical problems or unexpected charges occur, you need help quickly. Poor customer service can turn a simple question into a stressful experience.

Test chat features or call during business hours to see how long you wait. If phone lines close early, you might struggle when you face an urgent issue outside of work hours.

Search online for common customer complaints. Reliable banks post clear FAQs and update their help centers regularly. You should feel supported, not left waiting for a resolution.

Mistake #6: Failing to Check Account Minimums and Balance Requirements

Many accounts advertise “no monthly fee with a minimum balance,” but some require higher daily balances than you expect. Falling short for a few days can negate fee waivers.

Note whether banks calculate balances daily or use average monthly balances. If your paycheck arrives mid-month, your monthly average might be lower.

Consider accounts that measure balances daily or have no minimum. Even if you earn lower interest, you never risk a surprise fee just because your balance dips briefly.

Mistake #7: Overlooking Security Features

Check whether the bank offers two-factor authentication via text or an authenticator app. See if you can enable real-time fraud notifications for suspicious charges.

Look into virtual or single-use debit card numbers for online shopping. These throwaway numbers help prevent hackers from accessing your main card details.

Mistake #8: Not Reviewing Fine Print on Promotions

Promotional offers can look tempting: bonus cash, high interest, or free perks. But the catch often lies in account activity requirements that might not match your habits.

Read terms carefully to identify deadlines for direct deposits, qualifying purchases, or account opening fees. Confirm whether you must keep dollars in the account for a certain number of days to avoid chargebacks.

Keep track of expiration dates. If you miss a deadline, the bonus might disappear. Set a calendar reminder so you meet each promotion’s conditions without last-minute stress.

By avoiding these eight mistakes, you gain better control over fees and enjoy a smoother banking experience. Compare several options to find an account that fits your needs.