Our money management habits are often what break or make us. An online savings account is the basis of personal finance for many Indians. But as easy and accessible as digital banking is, there are still some unnoticed issues that can become harmful to your financial health. Let’s break down these habits and highlight some actionable steps we can take to rid ourselves of them.
Overlooking Regular Reviews of Your Accounts
The Problem
Most people set up their online savings accounts and forget about it. Neglecting your account may result in missed errors, unexpected fees, or even fraud.
How to Break It
Check your account monthly as a habit. Be on the lookout for hidden fees, unauthorised purchases, or recurring transactions in your spending. Take advantage of your mobile banking apps to review your banking activities.
Maintaining Multiple Dormant Accounts
The Problem
It becomes common to open accounts over time for the purposes of getting offers, salary deposits, or other reasons. But the problem is when these accounts become dormant. Dormant accounts usually incur maintenance charges that eat away your savings.
How to Break It
Consolidate your accounts. Close the online savings accounts you no longer use to avoid unnecessary charges. As you open a new online savings account, ask yourself whether it is truly necessary.
Leaving Savings Idle in Savings Accounts
The Problem
Although savings accounts are safe, their interest rates are low. Leaving such large sums idle means missing out on better investment opportunities.
How to Break It
Determine a limit on how much you should leave in your savings account. The amount should be enough for emergencies and other short-term goals. Shift the remaining balance to higher-yielding instruments such as fixed deposits, mutual funds, or recurring deposits. Use auto-sweep facilities of online savings accounts to automate the process.
Failing to Automate Savings Transfers
The Problem
When savings are subject to your discretion, they are often a low priority compared to immediate spending needs. This is a big reason why so many people find it hard to save in the long term.
How to Break It
Automate your online savings account. Set up standing instructions to transfer a fixed sum amount every month to another account or investment instrument. It creates a “pay yourself first” system that fosters discipline.
Disregarding Rates and Features
The Problem
Most people stay with their bank because of the convenience, even if they do not have favorable interest rates and account features. Over time, that can mean missing out on better returns or benefits.
How to Break It
Shop around for an online savings account regularly for better offers such as higher interest rates, lower fees, and cashback or rewards. A better account can help you save more with little effort on your part.
Buying Unnecessary Add-Ons
The Problem
Banks may sweeten an online savings account offer with add-ons like insurance, upgraded services, or premium debit cards. They can be helpful but aren’t always essential and can involve hidden costs.
How to Break It
Assess if the add-on really add value to your financial goals. Before you use any service, ask for a breakdown of the costs. Do not take on things that are not necessary.
Overlooking Bank Charges
The Problem
ATM fees, SMS charges, and minimum balance penalties can nibble away at your savings. Most people don’t think about the way that these little deductions compound over time.
How to Break It
Be proactive. Know the fees associated with your account and try not to incur unwanted charges. Use your bank’s ATM to withdraw and avoid a fee, and make 100% sure that you meet minimum balances at all times unless you have a zero-balance account, which has no minimum balance requirement.
Not Having an Emergency Fund
The Problem
An ideal savings account is one that includes a cushion for emergencies. But many people either don’t set this up or tap into it for non-urgent expenses.
How to Break It
Set a clear goal for an emergency fund — 3–6 months’ worth of expenses is common. Treat it like gold and use it only in real emergencies. Park this fund in a separate high-interest online savings account to avoid temptation.
Overusing Debit Cards
The Problem
Using a debit card too much can lead to impulse spending, which can happen when a savings account is online and convenient.
How to Break It
You can limit your debit card usage by adjusting daily transaction limits or by disabling it for any category.
Neglecting Digital Security
The Problem
Online savings accounts are convenient with some risks, from phishing attacks or online frauds, to name a couple. Most people fail to follow basic security practices.
How to Break It
Use strong passwords, turn on two-factor authentication, and update them regularly. Also, try to avoid using your net banking over public Wi-Fi networks and never click on suspicious bank emails or messages.
Final Thoughts
So, here are bad money habits that will slowly bring you down. The good news? You have complete control over breaking them. You can use these tips to get the most out of your online savings account and build a better relationship with money by being proactive, disciplined, and informed.
