5 Things You Should Never Do With Your Bank Account

Bank accounts are some of the most important and widely used financial products. They give you a safe place to deposit, store, and manage your money, including your savings and the money you use to pay your monthly bills.

While bank accounts are fairly easy to use, there are some common mistakes people make with them that can prove costly. And they're mistakes that can be made by anyone, from banking beginners to those who have had an account for decades. To avoid any expensive issues, here are the things to never do with your bank account.

1. Overdrafting it

If you spend more money than you have in your bank account, your bank can charge you an overdraft fee. Not all banks charge overdraft fees, but many do, and fee amounts can be $30 or more. Research by the Consumer Financial Protection Bureau has found that the average American pays $250 per year in overdraft fees.

Keep track of your bank account balance, and leave yourself a financial cushion, so that you never overdraft it. Banking apps are a good way to stay on top of your balance.

2. Keeping all your money in a checking account

Checking accounts are the perfect place for depositing paychecks and keeping your monthly spending money. You can use your checking account to pay bills and get cash at ATMs when you need it using your debit card.

It's not where you should keep all your money, though. Savings accounts are a better place for your savings, because they tend to have much higher interest rates than checking accounts. Make sure to stick to high-yield savings accounts, as these are the savings accounts with the best rates.

3. Paying a monthly fee

Many bank accounts charge a monthly fee, but they'll generally waive the fee if you meet certain conditions. For example, your bank may waive the monthly fee on your account if you do any of the following:

• Receive a minimum number of direct deposits, such as $500
• Maintain a minimum daily balance, such as $1,000
• Maintain a minimum average balance, such as $5,000

There's really no good reason to pay a monthly fee for your bank account. Only use an account if you'll have no problem meeting the conditions to have the monthly fee waived. Or, pick an account that doesn't charge a monthly fee.

4. Letting someone else use your debit card

I've known a surprising number of people who didn't mind letting friends, family, and significant others use their debit cards. Even if you think the other person is trustworthy, this isn't a great idea, and it could even break the terms of your account.

Some banks state in their cardholder agreements that only the account holder is authorized to use the debit card for the account. While your bank probably isn't going to catch you if you lend out your debit card, you're essentially giving someone else access to the money in your account. If they decide to take out cash, it's doubtful your bank would reimburse you, since you allowed another person to use your debit card.

If you want your spouse to be able to use your account, the best option is to add them as an authorized user. If you want to give anyone else money, cash or payment apps like Venmo are a better option.

5. Logging in through a link from an email or text message

Identity theft and financial fraud are a frequent issue, and they've been on the rise. In the United States, there were nearly 1.7 million identity theft reports in 2021 -- over one million more than there were just two years prior. One of the more common ways that criminals steal sensitive information is through phishing scams.

A phishing scam is a ploy where scammers contact you and impersonate another person or company, such as your bank. It's often done by email or text message. The scammers pretend to be messaging you as your bank, and the message includes a link to a fake version of the bank's website.

If you click the link and enter your account information, those scammers now have it and can hack your account. That's why you should never click any links unless you're absolutely sure of the source. WIth your banking and other financial accounts, always enter the real URL for the site yourself to play it safe.

Your bank account should be a place where you can safeguard your money and earn interest on it. That's why it's important to avoid anything that will lead to fees or put your account's security at risk.