Home Save Money Online Banking Mistakes We Should Be Avoiding

Online Banking Mistakes We Should Be Avoiding

by Allison

Be honest, when you think about your bank do you think about the tellers, or do you think about the app? Online banking: everyone’s doing it. The days of driving to your bank, standing in line and working with a teller to manage your money are long gone. Now our banking experience is as simple as logging onto our apps and making a few calls here and there.

Business Insider reports that there are 196.8 million digital banking users in the United States today, and that number is continually growing. Digital banking is one aspect of the modern age that has completely changed our lives, and it’s not going anywhere.

For many Millennials and members of Gen Z, online banking is all they have ever known. When something has become an everyday facet of our lives, we can forget to ask ourselves if we are actually good at it. Go ahead and ask yourself, am I a savvy online banker?

 We’ll give you a hint. If you’re practicing any of these bad habits, the answer is no. Don’t worry, being good at online banking is easy. You just might have to make some small adjustments to become an online banking pro.

Being the best online banker you can be is a necessary feat in the digital era. Let’s learn from our mistakes, here are the most common online banking errors that you must avoid.

Not Checking Your Accounts

This one may seem obvious, but you’d be surprised on how many people let their accounts go unsupervised for extended periods of time. Nearly every fixed expense can be automatically paid, and Apple Pay has made it possible to cover daily expenses without even touching a credit card. Just because everything is automated does not mean that you shouldn’t check up on your accounts.

The payment automation that makes our financial lives easier could become the detriment of our wallets. How many automated expenses have you set for yourself? The answer might surprise you. Checking your accounts regularly will protect you from paying for things you do not want.

We recommend that you set aside a few minutes every day to check your bank accounts. Yes, we said every day, even if you don’t think you’ve made a purchase that day. Checking your accounts is fundamental and must be incorporated into the routine of a successful money manager.

Not Keeping Your App Up to Date

Software updates are a bore, but they’re absolutely necessary to protect your money.  Most banks will prompt you to update your banking app before you can even open your account. If you don’t get those notifications, you need to have your banking app automatically update in the background.

Most of these software updates are created to protect you from theft, so take them seriously. Keeping your financial apps up to date is just part of your job as a digital banking user. 

Transferring Too Soon

Venmo, Cash App, and Apple Pay are mega convenient. Transferring money online has seriously never been so simple.

While immediate transfers from money sending apps are quick, you should still be waiting a day or two for your bank account to catch up before you move the transferred money between accounts. Even though the total on your bank account adjusts after your transfer from Venmo, your bank is still working to catch up in the background. Give your bank a day’s time to process the cash before you move it between your accounts.

Using a General Password

One password for every account isn’t going to cut it if you want to be an online banking aficionado. Honestly, using one general password won’t even make you a mediocre digital banking user. We know you’ve heard this advice before, now it’s time to actually put it to use. Using a general password makes you an easy target to identity theft. Seriously everyone, change your passwords.

Using Public Wi-Fi

Public Wi-Fi leaves you totally vulnerable to hackers. When you sign on to public internet network, you could be signing onto a completely unencrypted system, which can expose your information to anyone.

As a general rule, keep off of you online bank accounts while you’re logged onto a public Wi-Fi connection.

 Things to Remember

So, are you a good online banker? We sure hope so. If you still need to make some adjustments to your online banking habits, here’s what you should keep in mind.

  • Your app is everything, check it!
  • One password is never enough
  • Be wary of public Wi-Fi