In a perfect world, banking would be simple and not require a second thought. Yet if you’re not careful, common banking mistakes could lead to extra fees, lost opportunities, and other potential problems.

If you want to protect your financial health, it’s a good idea to learn about these common mistakes so you can correct them, or at least know how to avoid them in the future.

1. Keeping too much money in a checking account

A checking account is a helpful financial tool that most people use to manage their spending money. This type of deposit account often features check-writing capabilities, a debit card, bill-pay features, and potential compatibility with mobile payment apps such as Zelle, Apple Pay, CashApp, and others.

Yet a checking account typically isn’t the best place to store large sums of money long term. A traditional checking account tends to offer little to no interest on the money you keep in your account. So, the cash you keep in your checking account probably has little potential to grow. (Note that high-yield checking accounts are the exception to this rule.)

What to do instead: In general, it’s smart to keep just enough money in your checking account to cover your monthly expenses. You might also want to add some extra funds to serve as a buffer in case of unexpected transactions.

When it comes to extra money you intend to save for an emergency fund or other short- to mid-term savings goals, most financial experts agree it’s better to keep it in a high-yield savings account or CD where it has the potential to earn more interest.

2. Using only a traditional savings account

Many people start out with a basic checking and savings account when they first begin to manage money on their own. But if you’re still putting your money in a traditional savings account, you could be missing out on a lot of potential interest.

The national average savings account rate is just 0.46%, according to the FDIC. While this rate is higher than the average APY on interest-bearing checking accounts (0.08%), with a little research you can find more competitive interest rates on different types of deposit accounts. This can translate to hundreds of dollars in earnings each year.

What to do instead: Instead of sticking with a traditional savings account, consider other options for the money you tuck away each month. Many online banks offer other types of deposit accounts with competitive interest rates, including high-yield savings accounts, money market accounts, and certificates of deposit that pay rates in the range of 4%-5% APY.

3. Paying unnecessary fees

It’s not uncommon for banks to charge monthly maintenance fees and other bank fees, including ATM fees, overdraft fees, inactivity fees, and more. These expenses can add up over time, and can chip away at your bank balances.

What to do instead: Some people don’t mind paying a monthly fee for a bank account with desirable features. But it’s also possible to find free checking accounts and free savings accounts that may meet your banking needs. Some accounts will also waive certain fees if you maintain a minimum balance or complete enough qualifying transactions each month.

4. Not keeping an eye on transactions

Not keeping an eye on transactions that post to your bank account is another banking mistake — one with the potential to have serious consequences where your financial health is concerned. If you don’t stay on top of your spending, it can be hard to stick to a budget and you might fall behind on your savings goals. You could also overdraft your account.

Failure to monitor the transactions that post to your bank account comes with another risk: You might not notice fraudulent activity on your deposit account if it happens to you. Banking scams are, unfortunately, an all-too-common occurrence.

Consumer protection laws like the Electronic Fund Transfer Act (EFTA) may protect you if someone uses your debit card to make unauthorized purchases in your name. But if you don’t notify your bank about fraudulent activity on your account within two business days, the financial institution could technically hold you liable for up to $500 worth of unauthorized charges. If you wait more than 60 days to report fraud, you might be responsible for all of the unauthorized charges on your account.

What to do instead: It’s a good idea to keep close tabs on the money coming in and going out of all of your bank accounts by reviewing your bank statements and account activity on a regular basis. Many banks will also let you set up text and email alerts so you will know when transactions of a certain amount post to your account or when suspicious activity occurs.

5. Not comparing your options

No matter how long you’ve been with your bank or credit union, you shouldn’t get too comfortable. If you keep money in a savings account, CD, or any other type of deposit account, it’s beneficial to see what kind of interest rates and benefits other financial institutions offer their customers from time to time.

Staying with the same bank may be the most convenient option. But you could be missing out on higher interest rates, generous bank bonuses, rewards, and other potential benefits.

What to do instead: Take the time to review offers from other banks and credit unions, at least a few times each year. Keep in mind that you don’t have to close your current bank account if you find a new, competitive deposit account that works for you. In some cases, it could be helpful to have multiple bank accounts to manage your finances and accomplish your savings goals.

Bottom line

The banking mistakes above may seem minor — especially if you’ve been committing these errors for a while without realizing they were a problem. But even small financial mistakes could lead to expensive problems over the long term.

As you eliminate these common bad habits from your life, you may be able to improve your overall financial health. Even small changes can create big savings in time as long as you’re consistent.