Reviewing your checking account statement regularly is important because it helps you maintain control over your finances, detect errors or fraudulent activity early, and manage your spending effectively. By carefully examining your statement, you can verify that all charges are ones you recognize, catch banking errors or suspicious transactions quickly, and identify recurring payments such as subscriptions you may no longer need, which can save you money
. This practice also helps you avoid various fees that banks commonly charge, including:
- Overdraft fees: Charged when you spend more than your available balance. Monitoring your statement helps you avoid overdrawing your account and incurring these fees, which can average around $27 to $32 per item
- Monthly maintenance fees: Some banks charge monthly fees for account maintenance, but these can often be waived if you meet certain criteria like maintaining a minimum balance or making a set number of transactions. Reviewing your statement helps you be aware of such fees and take steps to avoid them
- ATM fees: Using out-of-network ATMs can result in additional charges. Your statement will show these fees, allowing you to plan withdrawals to avoid unnecessary costs
- Returned item fees: If you write checks without sufficient funds, you may be charged fees. Regular review helps ensure you have enough funds to cover your transactions
- Paper statement fees: Some banks charge for mailed statements; knowing this can encourage switching to electronic statements to avoid the fee
Overall, regularly reviewing your checking account statement is a key financial habit that helps you detect fraud early, correct errors, understand your spending patterns, and avoid unnecessary bank fees, ultimately safeguarding and improving your financial health
