3 Banking Mistakes to Avoid Like the Plague in 2023
3 Banking Mistakes to Avoid Like the Plague in 2023
Story by Maurie Backman • Jan 29
The money you have in the bank most likely isn't money that landed there because you won the lottery or came upon an unexpected windfall. Rather, it's money you most likely worked for by toiling away at your job, and maybe even a side hustle on top of that.
That's why it's so important to pay close attention to your bank accounts -- and make the time to check up on them. It's also important to avoid these big mistakes -- both in 2023 and in general.
1. Not shopping around for a better interest rate on your money
The interest rate you earn on your savings account or in a CD might vary significantly from one bank to another. Even if your bank seems to be paying a pretty generous amount of interest, it still pays to do some research and see what other banks are paying -- especially these days.
A year or so ago, this advice wouldn't have really held up. Back then, banks were paying such a minimal amount of interest that there was almost no point in putting in the time to earn an extra $0.72 in interest in the course of a year.
But these days, banks are paying a lot more interest. You might easily, for example, snag an interest rate in the 3% range in a high-yield savings account and a rate in the 4% range for a CD. So if your bank is paying 3.2% on regular savings but there's a bank out there paying 3.7%, that's a big difference.
2. Paying overdraft fees in your checking account
To continue reading, please go to the original article here: