5 Common Banking Habits That Aren’t Actually Good for Your Finances

Megan Mostyn-Brown    Sat, September 9, 2023

Bad habits are hard to break. But if you’re going to break any bad habit this year, break a bad banking habit. Irresponsible banking can cost you money. Lots of money. In fact, according to the Consumer Financial Protection Bureau (CFPB), from 2019-2020 Americans spent almost $28 billion in banking fees alone. Ditching these common practices can boost your bank account by saving you money.  

Paying Overdraft and Non-Sufficient Funds Fees

Everyone’s had at least one moment in their life when their bank account has hit zero. If you’ve opted into your bank’s overdraft protection, you’ll be able to continue to make purchases with your debit card without sufficient funds.

But know this: Even if you do have overdraft protection your bank may not allow it to be used when writing checks or using automatic bill pay. If you don’t have overdraft protection your bank may decline your purchase. In all of these scenarios, you can be charged a fee, either an overdraft fee or a non-sufficient funds (NSF) fee.

Both overdraft and NSF fees will run you around $34, according to the CFPB. While this may not seem like a lot of money, if you continually overdraw your account the number of fees you accrue can add up. The best way to avoid these fees is to budget your money.

If that’s not possible, the FDIC suggests linking your checking and savings account so that you can move money from one to the other when you risk overdrawing. You’ll still incur a fee for moving the money, but it won’t be as high as the fee you would be charged for overdrawing the account.

Paying ATM Fees

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