7 tips to manage your checking account

While a checking account can be a major part of your personal finances, it’s easy to set it and forget it. Case in point: When’s the last time you considered how to manage your checking account? If it’s been a while, you could miss out on time- and money-saving features.

“I look at a checking account as the starting point of how your finances flow,” says R.J. Weiss, founder of a financial planning website. “Money comes into your checking account, and after that, you decide where the money goes.”

Instead of sitting on the sidelines, Weiss says forward-thinking management can help you get the most benefits from your account. To start, consider these seven tips to manage your checking account:

One of the easiest ways to manage your checking account and save time is to automate your finances, meaning actions related to your money will happen without you needing to do anything. Consider setting up a direct deposit with your employer so your paycheck goes right to your checking account. You can get paid sooner with the early paycheck feature from Capital One. You may be able to set up automatic transfers from checking to savings, which can help you save for important goals without having to remember each month or paycheck. An added bonus: You may be less tempted to spend that money.

With Capital One Recurring Transfers or Autopilot, you can grow your savings automatically by scheduling repeating transfers that fit your specific budget and timeline.

Another one of the tips to manage your checking account is to set up bill pay so your monthly bills are paid from your account automatically.

“The online bill pay function saves you from having to write out checks, pay for postage and take the time to mail the check,” says Ryan Inman, a financial planner for physicians.

Some companies charge processing fees for credit card payments. Inman says you may be able to save money by paying bills from your checking account or having the company withdraw the money directly from your account.

“Whether you’re setting alerts with a budgeting software or using the bank’s app, you always want to have an idea of how much money you have in your account,” Weiss says. You can also check your balance and manage your checking account by logging into your account online or visiting an ATM.

Knowing how much money you have available will make it easier to plan for upcoming bills, avoid fees, and better monitor your budget and spending.

While keeping a close eye on your balance is a way to manage your checking account, it can also protect your account. An unexpected drop or a charge you don’t recognize could be a sign of fraud, meaning someone has access to your funds without your permission. The sooner you report it to your bank, the better your chances of limiting the damage and stopping any more theft.

Another one of Weiss’s tips to manage your checking account is to get to know your bank’s mobile app.

In addition to letting you check your balance while you’re on the go, the mobile app can help you manage your checking account by letting you deposit checks, review account activity and pay bills. The Capital One mobile app provides an easy way to take care of your daily banking tasks.

Most checking accounts are made for everyday spending, not growing your money. But some banks offer interest-bearing checking accounts that pay you a small sum based on your balance. It won’t replace a savings account, but it’s an easy way to make your money work a little harder without changing your habits.

Inman and Weiss both shared tips to manage your checking account that will be helpful if you’re also interested in how to avoid bank fees. One of the simplest is to have an account that doesn’t charge a monthly maintenance fee, no matter your account balance or account activity. Because Capital One 360 Checking accounts are fee-free and don’t make you keep a minimum balance, you have more money in your wallet.

Your bank could also charge a fee when you use your connected debit card to withdraw cash from certain types of ATMs. Inman recommends knowing which ATMs you can withdraw cash from without paying a fee and using these no-fee ATMs as much as possible to manage your checking account. Finding a place to withdraw money is a breeze with Capital One since you have access to over 70,000 fee-free ATMs in places you already shop.

If you’re thinking about tips to manage your checking account, know that overdrafting—when a transaction brings your account balance below zero—can lead to fees.

“It’s good to know the terms if you might overdraft on your account,” Weiss says.

Banking should be on your side. That’s why Capital One has removed overdraft fees on the 360 Checking account to help you keep your hard-earned cash where it belongs.

To manage your checking account like a pro, you should also be aware of fees that come with ordering checks, sending wires and stopping payments.

Inman says many of his clients have multiple checking accounts when they first meet with him.

“Consolidating and simplifying your finances so you have just one main checking account can make it easier to monitor your finances,” he says. “You can quickly see how much money you have, when it comes in and where it goes.”

For some, tracking your money could be more difficult and take more time if you’re managing too many checking accounts. You’ll have to remember login information for multiple accounts, keep track of different balances and remember which account you use for which bills. Plus, it may be easier to avoid potential fees for just one account.

If you manage your checking account well, it can be a great place to keep money for everyday spending and regular monthly bills. This could mean expenses like entertainment, food and transportation. For medium- and long-term savings goals, another type of bank account may be a better fit.

“You want the money in your checking account to have a purpose,” Weiss says, “Otherwise, move it to an account that earns higher interest.”

For medium-term goals, an online savings account or certificate of deposit (CD) could be a good fit. And tax-advantaged accounts like a 401(k), individual retirement account (IRA) or 529 college savings plan may offer benefits if you’re saving for long-term goals, such as your retirement or a child’s college education.

As you think about how to manage your checking account, start by reviewing your current habits and picking places for improvement. Small changes—such as automating payments, monitoring your balance and avoiding unneeded fees—can make it easier to stay organized and in control.

In summary, here are a few key tips to manage your checking account:

• Automate your finances to simplify everyday banking and stay on track with deposits, payments and savings goals.

• Check your account activity regularly to stay aware of spending, avoid fees and detect potential fraud early.

• Think about where your money lives and whether it’s in the right place. Keep everyday spending money in your checking account. Move the rest to accounts that earn more interest and are better suited to help it grow.

The Capital One Mobile app helps make managing your money easier.