4 Banking Mistakes to Avoid as 2022 Comes to an End

Do your best to steer clear of these.

It's hard to believe that 2022 is almost over. Wasn't it just yesterday that we were all hunkering down during those January COVID-19 surges and getting used to the word "inflation" being all over the news?

But now that 2023 is right around the corner, now's a good time to start thinking about ways to start off the new year in a solid financial place. And to get there, you'll want to avoid these major bank account blunders.

1. Not checking your savings balance

Do you have enough money in your savings account to cover three full months (or more) of essential bills? If not, you should probably make a plan to boost your savings so you're set with an emergency fund.

But do yourself a favor and take a minute to see what your savings account balance looks like. If you don't take that quick, simple step, you might forget about the withdrawals you've taken this year -- and you might neglect to free up cash for savings, thinking you have enough money socked away already.

2. Not making a plan for CDs that are up for renewal

Have a certificate of deposit (CD) coming due? Don't just ignore it and let it roll over into a new CD with the same term automatically (which is what will often happen if you do nothing). Instead, do some research to see what move makes sense.

You may decide to open a shorter- or longer-term CD, depending on what interest rate you can snag. In fact, you may decide to not tie your money up in a CD but instead, move it into a regular savings account now that interest rates are way up across the board.

3. Not going after a better interest rate on your savings

Over the past few months, many banks have started offering up higher interest rates on savings accounts and CDs. But that doesn't mean your bank has the most competitive interest rates out there.

That's why it pays to do some digging rather than settle for the interest rates you're being offered right now. A little research -- and a switch over to a new bank -- could leave you earning a lot more interest on your money.

4. Falling victim to overdraft fees

During the holiday season, extra expenses can pop up left and right. But it's important to be mindful of your spending during this time, because if you're not careful and you overdraw your checking account, you could wind up on the hook for costly overdraft fees.

Granted, some banks have done away with these fees, but many still have them in place, so you'll need to be careful over the next few weeks in particular given the pressure to spend during the holidays. If your checking account is running low, look in on your balance before making extra purchases.

You may be looking forward to the start of 2023. But you'll want to end 2022 on a positive financial note. And that means avoiding these mistakes that might end up costing you money and leaving you kicking yourself.