6 checking account tips for saving time and money

By Louis DeNicola

Whether you're opening a checking account for the first time, or you've had one for decades, it will likely be the heart of your personal finances. Money might flow into and out of your checking account daily — and it can be a barometer for your overall financial health.

Learning and implementing these six checking account tips can help you save time and money.

1. Create a strong and secure password

Always set up your online account with a strong and unique password. Ideally, your password won't have any similarities with your other account passwords.

For example, some people might use similar patterns for their passwords, such as a company's name followed by several numbers and symbols. These passwords are technically unique. But if a data breach leaks one of your passwords, a criminal might be able to easily guess the others based on the pattern.

Banks often have security measures that help limit fraudulent access to your account even if someone knows your password. But using unique passwords is still important for protecting your personal information and keeping your account secure. You can also use a password manager to help you create, store and fill in strong passwords.

2. Download your bank’s mobile app

Get familiar with your bank's mobile app, as it could be a convenient way to monitor and manage your account. Depending on the app, you might be able to quickly:

• Check your balance and account history
• Transfer money between accounts
• Deposit checks into your account
• Activate and freeze your debit card
• Find nearby ATMs and branches

3. Choose and activate alerts

You also might be able to use your online account or mobile app to set up alerts and get emailed or texted when there are changes in your account, such as:

• Your balance goes below or above certain amounts
• A transaction fails due to insufficient funds or your account has overdrafted
• New checks or transactions clear your account
• New account statements are available
• Recurring transfers are approaching
• The address in your account is changed
• Someone requests new checks

These alerts can help you track your money and spot potentially suspicious activity. You can also go back into your account to edit or remove alerts if you change your mind.

4. Set up direct deposits

Most people use direct deposit to have their paychecks sent directly to their checking accounts instead of receiving paper checks. But you can also set up direct deposits for other types of payments, such as Social Security benefits and child support.

If you opened a new checking account, you could adjust your direct deposits to have some or all of your payments directed to the account. Depending on where you work, you might even be able to do this online without contacting your employer.

5. Use automatic bill payments

You can also set up automatic payments from your checking account to make managing your household bills easier. For example, you could automatically pay your rent, mortgage, utility, credit card and other payments from your checking account each month. You can even set up one-time or recurring payments to individuals, such as a babysitter or landscaper.

Automatic bill payments can help you avoid accidental late fees. Banks may even guarantee that your payment arrives on time, or they'll cover any late fees due to errors. However, you'll still need to be sure there's enough money in your account to avoid an overdraft — setting up alerts can help.

6. Understand your account's fees

Several common checking account fees you'll want to learn about, include:

• Monthly maintenance fee: A recurring fee for keeping your account open that the bank might waive if you keep a minimum balance in your account or deposit enough money into the account each month.
• ATM fees: You might have to pay a fee if you withdraw money from an out-of-network ATM. Use your bank's mobile app to try to find an in-network ATM or branch instead.
• Paper statement fees: Sign up for electronic statements to avoid potential fees for paper statements.
• Check-related fees: You may be charged a fee for ordering more checks or stopping a payment on a check that you've already written. You can avoid these by using electronic payments instead of physical checks.
• Foreign transaction fee: Your bank might charge you a percentage of your purchase amount if you want to use your debit card to make purchases in a foreign currency or when you're outside the U.S.
• Inactivity fees: Your bank might charge you a fee if you haven't used your account recently.

Compare checking accounts to find the best fit

Checking accounts can be relatively simple compared to other types of financial accounts, and that's often a good thing. But you still want to review your account to make sure you're not missing out on features that can help you save time and money.

You can also compare checking accounts to find out which one best aligns with your financial situation. It's often easy to open a new account, and you can use the tips above to quickly get everything set up.