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Banking is supposed to help you manage and grow your money, but a few seemingly harmless habits could be costing you money. From paying avoidable fees to letting your savings sit without earning interest, these common banking mistakes can add up over time. The good news: Most are relatively easy to fix.

A checking account is a helpful tool for managing your spending money. This type of deposit account often features check-writing capabilities, a debit card, bill-pay, and the ability to connect 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.

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.

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.

For example, the national average savings account rate is just 0.38%, according to the FDIC. However, with a little research you can find more competitive interest rates, especially from online banks and local credit unions. In fact, today's best high-yield savings accounts earn upwards of 4% APY.

Say you have $10,000 in savings and you keep that money in a traditional savings account that earns the average rate of 0.38%. After one year, you'd earn an extra $38 in interest. But if you put that money in a high-yield savings account that earns 4% APY, you'd have $408 in interest after one year.

What to do instead

Don't let your money sit idly in the bank. Choosing a higher-yield account can mean earning hundreds of dollars per year in interest without any extra work on your part. So, spend some time researching high-yield savings accounts, money market accounts, and even certificates of deposit (CDs) and looking for accounts with competitive rates that will help your balance grow.

Banks can charge a variety of fees, from monthly maintenance fees to ATM fees to overdraft fees. While a small fee here and there may not seem like a big deal, these expenses — which are usually avoidable — can add up over time and chip away at your bank balances.

What to do instead

Some people don't mind paying a monthly fee for a bank account with premium features. But it's also possible to find free checking and savings accounts that meet all of your banking needs without the added cost.

Alternatively, some accounts will waive certain fees if you maintain a minimum balance or complete enough qualifying transactions each month. When choosing a bank account, be aware of the potential fees and the requirements to get them waived or refunded.

Taking a totally hands-off approach to banking can lead to negative consequences for your financial health. For instance, 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 if you don't keep an eye on the balance.

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.

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.

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.

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