Americans reportedly pay an average of $150 to $200 annually in bank fees. These mostly come from overdrafts and other account maintenance charges. If you’re someone who struggles with fees like these, signing up for the right banking notifications can help you solve the problem.
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Here are five valuable types of alerts to consider adding to your bank account.
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Low Balance Alerts
You can only be charged overdraft fees if you run out of money in your account. That’s why setting up a low balance alert may be a good move. It would warn you when funds are running low so you can change your spending habits until the next check arrives.
This can be especially helpful when dealing with unusual charges. For example, maybe you usually don’t have any bills due on the 15th but signed up for a buy now, pay later (BNPL) agreement.
A low balance alert could notify you of the pending charge. That way, you know to spend less until the 15th or to deposit more funds from another account to avoid an overdraft fee.
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Unusual Activity Alerts
Some banks also have alert systems for unusual account activity. For instance, you might live in California but suddenly have a debit transaction in Texas. Your bank’s alert system could let you know in case it’s fraud.
Knowing this would help you take action to resolve the issue sooner. Sometimes, that’s all it takes to avoid overdraft fees and related charges. For example, you might need to delay making your car payment after an unusual activity alert.
Large Purchase and Withdrawal Alerts
The average American spends just over $6,000 on monthly expenses. It can be difficult to keep track of every bill. Most of us have forgotten about an upcoming payment at some point in our lives. That’s what makes bank alerts for large purchases and withdrawals valuable.
These alerts let you know when money comes out of your account. You may be able to set thresholds for a dollar amount that will trigger the alert. For instance, you could set up alerts for any withdrawals over $100 or $1,000, depending on your financial situation.
Profile Change Alerts
Nearly 1 in 3 Americans have been victims of financial fraud online. If your bank account gets hacked, you want to be able to respond quickly. Doing so may help you avoid overdraft fees — which aren’t always refunded, even when stolen funds are.
That’s why you should consider setting up alerts for profile changes on your bank account. Doing so would let you know whenever your address, email or password is updated.
You can use that information to stop fraud faster. For instance, you might get a text alert that your password was changed. If you didn’t change it, this would give you time to contact your bank before the hacker can drain your account and begin racking up overdraft fees on it.
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Upcoming Payment Alerts
Finally, consider setting up upcoming payment alerts on your bank account. These warn you of pending charges that you’ve already approved. For example, you might get an alert a few days before your car insurance bill comes out of your account. This can help you stay on top of your finances so it’s easier to avoid fees.
While these are all good ideas, you don’t necessarily need to sign up for every alert featured on this list. You can consider your financial situation and the kinds of support you need, then go from there.
How To Set Up Bank Account Alerts
Now that you know which bank alerts can help you avoid fees, it’s time to set them up. The process for that will vary based on your bank, but it often looks something like this:
Log into your account dashboard
Navigate to settings
Choose alerts, notifications or something similar
Select the alerts you want to start receiving and how you want them to be shared — such as by text or email
When in doubt, search online for instructions that are specific to your bank. You may also need to update your alert settings from time to time as your financial needs evolve.
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This article originally appeared on GOBankingRates.com: 5 Smart Ways To Use Bank Alerts To Avoid Overdrafts and Fees
