The modern lifestyle is characterised by a long list of daily tasks. People work hard to balance work, home, family responsibilities, and personal growth. With such commitments, it is easy to forget important tasks such as checking your bank account regularly. However, overlooking this crucial aspect of personal finance can be a costly mistake.

Let's take the example of Sahil, an IT professional who leads a busy life with tight deadlines and a long commute. He has a well-paying job and doesn't usually worry about finances. However, one day he realised that he has unknowingly overspent, and his expenses have exceeded his monthly budget. And the reason for this? He had been billed twice for a party he threw on his birthday at a restaurant. He had no idea about this because he discovered the mistake a month later.

This instance highlights the significance of regularly monitoring your bank account at least once a week. Highlighted below are more reasons why you should make this a habit.

  • To keep track of your spending

    Your bank savings account is the central hub of your financial life. And regularly reviewing it helps ensure that you are staying within budget. This is more important if you have multiple expenses to handle, such as rent, utility bills, and groceries, as you can monitor your cash flow and identify any irregularities or errors in your spending on time.

    Also, reviewing your transactions once a week can help you identify areas where you might be overspending and make necessary adjustments.

  • Ensuring accuracy

    Today, millions of people rely on digital methods to pay for their purchases. This makes it easy to lose track of your spending, and sometimes transactions can be incorrectly recorded due to accidental double payments, errors in entering payment details, or technical glitches. By logging on to your bank's website or checking your bank statement, you can easily spot any discrepancies and rectify them early.

    This practice also helps you identify any unusual activities or unauthorised charges on your account, which could be signs of identity theft or fraud. Detecting fraudulent activity early can limit financial damage and prevent long-term consequences.

  • Open a new bank account

    Check your bank account regularly, particularly if you are planning to open a new bank account. By regularly monitoring your existing account, you can easily compare the options and benefits offered by different banks.

    For instance, if you stay up to date with the features of different banks every week, you may find a financial institution that offers better bank interest on savings accounts, lower fees, and more cashback offers and rewards. This can help you save money for long-term financial goals.

  • You can invest the idle funds

    By checking your account weekly, you gain clarity on your current finances. You know how much you can allocate to various investments. You can invest your idle funds in stocks, bonds, mutual funds, real estate, commodities, and alternative investments as per your risk appetite and return expectations. This helps you earn higher returns and maximises the growth potential of your savings. If opting for such investment avenues does not suit your risk appetite, you could also opt for the ActivMoney feature wherein your idle funds, above the predetermined limit, would be used to create a fixed deposit. This would enable you to earn more interest on your idle funds.

To conclude

Checking your bank savings account at least once a week is important for effective financial management. It helps you track your spending, detect unauthorised transactions, avoid overspending, and stay up to date with your finances. Moreover, with online banking and mobile apps, it is possible to check your bank account anytime, anywhere, helping you manage your finances at your fingertips.

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.