A lot can happen in your bank account on a daily basis. Your balance moves up and down. Deposits roll in. Payments are due. And suspicious activity may occasionally occur.
By setting up a few mobile alerts, you can keep an eye on your banking activity without having to constantly log into your account. These notifications can be sent by by text, email or through your bank’s app. They can provide convenience and protection, and they may just end up saving you from fraud, fees and costly mistakes.
“Mobile alerts are one of the easiest ways to stay on top of your account activity and help protect your money,” says Sarah Perez, senior vice president and marketing manager at DFCU Financial. “They give you real-time updates so you can spot unusual transactions quickly, avoid late fees and better manage your spending.” Banks often have some alerts that they automatically send you without the need to opt in and then other additional alerts that you can select and customize, says Kristina Tanner, head of digital products at USAA. Automatic alerts are generally those that notify you of suspicious account activity, while optional alerts may help you better monitor your spending habits or account balance.
“A good banking app will not require any additional alert setting, besides a handful of subscribed alerts,” says Tanner.
Banking representatives say many of their customers are setting up those additional alerts. For example, Citizens Bank reports that 55% of its clients have opted into account-based alerts, which include alerts such as early pay notifications, statements, low balance warnings and payment reminders.
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How to Set Up Mobile Banking Alerts
The exact steps to set up mobile alerts will vary from bank to bank. In most cases, you can set them up by following these general steps.
— Go to account settings. Log in to your account and navigate to the settings menu on the bank’s website or app. There, you should find an option to manage your alerts.
— Select your account. If you have multiple accounts at the same institution, you may have to specify which account you want to set alerts for.
— Choose your alerts. Select from a list of mobile alerts your bank allows you to set up. Turn on the alerts you want to receive.
— Customize your alerts. You can typically adjust the alerts to match your preferences. For example, you can request to get a low balance alert when your account balance dips below $100 or $20.
— Choose how you receive alerts. Most banks will give you the options to get notifications sent as texts, emails or push notifications.
— Save your preferences. After you’ve configured your alerts to your liking, you may need to hit a button to save the changes.
[Read: Best Checking Accounts.]
6 Types of Mobile Banking Alerts to Activate
Most banks and credit unions provide a variety of mobile alert options, although some may allow more customization than others. Experts say these are some of the most important alerts to consider adding.
Transaction Alerts
This alert allows you to keep tabs on your everyday banking activity, and it may be your first line of defense against unauthorized purchases.
“I would set up an alert on all transactions above a threshold of $20 on both cards and bank accounts,” says Tony Anscombe, chief security evangelist for ESET, a cybersecurity company.
He suggests this amount because it prevents you from getting flooded with notifications for every coffee or snack you buy but still allows you to closely monitor your account activity.
“For most people, this is likely to be between three to five alerts a day, which is not too many to read to keep your accounts safe,” says Anscombe.
Some customers may choose to only set alerts for larger transactions. For others, no purchase is too small to warrant an alert.
“There’s a client of ours who has a push alert sent to her phone each time her credit and debit cards are used because, at a previous banking institution, she had her debit card number stolen and her checking account debited for small amounts for weeks,” says Anna Dosen, U.S. Bank’s branch banking market leader for Minnesota and North Dakota. “It gives her peace of mind to know when, where and how her cards are being used.”
Low Balance Alerts
This alert can help you in several ways. It can prevent you from overdrawing your balance and getting hit with overdraft fees that can often be as high as $35.
A low balance alert can also be useful if your account requires you to maintain a certain balance to waive your monthly fee or to qualify for a higher interest rate.
“These are very helpful for most customers as they provide an awareness of low balances or when large deposits are made,” says Chris Powell, head of deposits at Citizens Bank. “This can ensure you always have enough funds to cover your spending and help you avoid overdraft fees.”
On the opposite end, some banks will allow you to set high balance alerts that notify you when your balance exceeds a certain level. This alert could indicate when it might be time to move some of the extra money in your checking account over to your high-yield savings account or a certificate of deposit, where it can grow faster.
Large Deposit Alerts
Your bank account’s balance can fluctuate over the course of the month. Knowing when your paycheck or another sizable deposit lands in your account can help you plan your spending. You can typically customize this alert to specify what qualifies as a large deposit.
Profile Updates or Password Resets
You want to be aware of any unauthorized changes to your account immediately, and this alert can notify you if someone is attempting to access your funds. Even if someone tried and failed to log into your account, you want to know about it.
“If it’s not the account holder doing this, it means the account itself has been compromised and is likely to be the path the criminal is using to transfer the funds from your account,” says Anscombe.
For this reason, many banks automatically set you up with these alerts.
“We’ll send you one, for instance, if we receive a request to change basic account information like your address, phone number or PIN,” says Dosen of U.S. Bank. “We’ll also send you an alert if we suspend your username and password due to multiple incorrect login attempts or if your debit card was reported lost or stolen.”
Charged Fee Alerts
Your bank may charge you a fee for various reasons. Monthly maintenance fees, overdraft fees and ATM fees are just a few types of charges that can surprise you. Setting up this alert can make you aware of any banking activity you may be doing that is costing you money.
You may decide to change your banking habits, or you may just want to ask your bank for more information about the fee.
Payment Due Alerts
This alert will remind you when you have coming payments such as monthly bills. In addition to helping you stay on top of your bills, this can also make you aware of any recurring payments you didn’t realize you were still making.
“This can help you avoid late payments and any subsequent fees that might be associated with it,” says Dosen.
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Watch Out for Bank Scams
While mobile banking alerts can be an effective tool in protecting your account, experts warn that fraudsters often try to fool you by sending fake alerts intended to create a sense of urgency and panic. These bank impersonation scams are on the rise. If you receive a notification of suspicious activity, experts say the best course of action is to independently look up your bank’s number and call it. Avoid clicking on links or calling phone numbers sent over in an alert.
“Scammers are increasingly sending texts with fraudulent links,” says Tanner. “Increasingly, banks are phasing out links in texts in favor of push notifications.”
However, as long as you’re cautious, mobile banking alerts can significantly improve your banking experience.
“Alerts are a simple tool that can pack a big punch when it comes to financial security,” says Tanner. “As banks continue enhancing their real-time insights, these alerts will deliver considerable value.”
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Why You Should Set Up These 6 Mobile Banking Alerts originally appeared on usnews.com
