Balancing Act

Online banking and mobile banking apps may have made it easier to keep track of your checking account balance, but it’s still important to make sure your records match your bank statement. Balancing your checking account regularly allows you to catch any merchant errors and spot problems, such as fraudulent charges, missed automatic payments, missing deposits, or subscriptions you thought you’d cancelled.

Balance Your Checking Account

1. Start with the opening balance (the amount of money showing in your account).


2. Subtract pending transactions, including checks you’ve written, ATM withdrawals, automatic bill payments and debit card charges.


3. Add expected deposits, credits and any interest earned.


4. Deduct fees and charges.


5. Record the ending balance (your available funds).

If the balance doesn’t match your account statement, go through your records again to find the discrepancy. Common errors include forgetting to record a transaction, transposing numbers and adding or subtracting incorrectly.

Expensive Mistakes

Your financial institution will charge you an insufficient-funds fee for each transaction that overdraws your account. Consider setting up overdraft protection or automatic transfers from a savings account.