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15 Banking Mistakes the Upper Class Never Makes (#8 Is So Simple)

Unveil the secret strategies that safeguard the affluent from financial pitfalls.

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Updated May 28, 2024
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In the world of banking, the upper class often navigates with ease, avoiding common pitfalls that may hinder financial progress. 

From maximizing perks to leveraging digital tools, their approach to banking is strategic and informed.

By understanding the banking mistakes the upper class never makes, you can adopt strategies to boost your net worth and achieve greater prosperity.

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Ignoring credit card rewards programs

Lumos sp/Adobe internet payment

Maximizing the benefits of credit card rewards programs to earn cash back, travel rewards, and other perks on your everyday spending means less money you’ll have to spend. 

You’ll want to strategically select the top rewards credit cards and use them responsibly to optimize reward accumulation without incurring unnecessary debt.

By leveraging credit card rewards programs, you’ll enjoy valuable perks and incentives that enhance your overall financial well-being and lifestyle.

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Not asking for what you want from your bank

Antonio/Adobe bank-building

Whether it's requesting waived fees or negotiating better interest rates, a simple phone call can lead to significant savings and perks.

By advocating for yourself, you can ensure that your banking relationships are mutually beneficial and aligned with your financial objectives.

Not searching around for the best banking perks

kerkezz/Adobe woman consulting female finance manager

By conducting thorough research and comparison shopping, you can ensure that your banking decisions align with your financial goals and lifestyle preferences.

Investing time and effort into finding the best banking perks enables you to optimize your financial outcomes and enjoy exclusive benefits tailored to your needs.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.1

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY2on your uninvested cash3and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Not diversifying financial institutions

JHVEPhoto/Adobe tiaa bank in jacksonville florida

Instead of relying solely on one bank, consider diversifying your accounts across multiple financial institutions that offer the best accounts. 

This spreads risk and allows you to access a broader range of products and services tailored to your specific needs and preferences.

By maintaining relationships with different banks, you can ensure flexibility and resilience in your financial strategies, safeguarding against potential disruptions or limitations.

Not taking advantage of wealth management services

StockWorld/Adobe financial advisor assisting a client

Wealth management services offer personalized financial guidance and investment strategies tailored to high-net-worth individuals. 

Recognizing the value of expert advice and leveraging wealth management services can optimize your portfolios and help you achieve your long-term financial goals.

By partnering with experienced professionals, you can access sophisticated investment opportunities and strategic wealth planning strategies that enhance your financial outcomes.

Not using digital banking tools

Konstantin Yuganov/Adobe man is using phone

Digital banking tools help streamline financial management. From mobile banking apps to online bill pay, leveraging digital solutions to track spending, manage accounts, and make informed financial decisions on the go is key.

By embracing innovation, you can enhance efficiency and convenience in your banking activities, freeing up time and resources for other priorities.

Not paying attention to fee structures

bnenin/Adobe securing her bank account

Paying close attention to fee structures can help minimize unnecessary charges. By understanding fee schedules and account requirements, you can avoid surprises and keep your banking relationships cost-effective.

Proactively monitoring fee structures allows you to make informed decisions about where to allocate your funds and maximize the value of your banking services.

Using ATMs of other banks

ifeelstock/Adobe woman using atm holding wallet

Instead of paying fees for using out-of-network ATMs, choose banks with extensive ATM networks or ones that reimburse ATM fees as part of the account benefits. This provides convenient access to cash without incurring unnecessary charges.

By choosing banks with robust ATM networks, you’ll minimize transaction costs and maintain flexibility in accessing your funds wherever you go.

Going into overdraft

Vitalii Vodolazskyi/Adobe overdraft sign and documents

Manage your accounts diligently to avoid overdraft fees and associated penalties. Maintain sufficient balances, set up low-balance alerts, and utilize overdraft protection options to prevent accidental overdrafts.

By staying proactive and vigilant, you can avoid costly overdraft fees, which can erode your financial resources and disrupt your cash flow.

Earn up to a $300 bonus and grow your money with up to 4.00% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.4

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account or overdraft fees5 and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.67 Plus, you can receive your paycheck up to 2 days early.8

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. 7

Open your SoFi account and set up direct deposit

Not maintaining minimum balances

JohnKwan/Adobe paying the credit card bill

Adhering to minimum balance requirements will help you avoid monthly maintenance fees and maximize the value of your accounts. Strategically allocate funds to meet minimum balance thresholds while optimizing liquidity and investment opportunities.

Maintaining minimum balances allows you to enjoy the full benefits of your accounts without incurring unnecessary costs, preserving your wealth and financial flexibility.

Not being aware of transaction limits

eliosdnepr/Adobe security lock on credit cards

Understanding transaction limits helps avoid disruptions to your banking activities and potential fees for exceeding limits. 

Whether it's ATM withdrawals, online transfers, or debit card transactions, always stay informed and plan transactions accordingly to avoid inconvenience and penalties.

By staying within transaction limits, you'll maintain seamless access to your funds while avoiding unnecessary fees or restrictions on your banking activities.

Not reviewing account statements regularly

vinnstock/Adobe statements of operations

Regularly reviewing your account statements to detect errors, unauthorized transactions, or suspicious activity promptly is important.

By monitoring account activity, you’ll maintain financial security and ensure the accuracy of your banking records. This proactive approach allows you to identify discrepancies early on, preventing potential financial losses or fraudulent activity.

Not automating bill payments

panuwat/Adobe online bill payment

Automating bill payments helps you never miss a payment deadline. This avoids late fees and maintains a positive credit history. 

Set up recurring payments for utilities, loans, and credit cards, streamlining your financial obligations and minimizing the risk of oversights.

Automating bill payments will free up time and mental energy to focus on more strategic financial planning and wealth-building activities.

Not having an emergency fund

Vitalii Vodolazskyi/Adobe Emergency fund jar

Always set aside funds in a liquid account to cover unexpected expenses, job loss, or other financial emergencies, providing a safety net for yourself and your family.

This prudent financial habit ensures you’re equipped to handle unforeseen challenges without derailing your long-term financial goals or resorting to high-interest borrowing options.

Overlooking interest rates

monsitj/Adobe financial graph on technology

Whether you're investing in high-yield savings accounts, CDs, or loans, paying attention to interest rates can help you maximize returns or minimize borrowing costs.

Shopping around for competitive rates and negotiating for better terms when necessary is key. Prioritizing favorable interest rates also enables you to optimize your savings and borrowing strategies, increasing your wealth over time.

Bottom line

Nick Starichenko/Adobe rich woman enjoy the sunset

Reflect on your banking habits and consider how adopting strategies employed by the upper class could enhance your financial well-being. Are there areas where you could optimize your banking relationships and avoid common pitfalls?

By taking proactive steps to improve your banking practices, you can elevate your financial management and protect your wealth in the long run.

Masterworks Benefits

  • Invest in art like a millionaire for a relatively low cost
  • Art investments have outperformed the S&P 500 by over 131% for 26 years
  • Purchase shares of artwork by top artists
  • Hedge against inflation and diversify your portfolio


Author Details

Adam Palasciano

Adam Palasciano is a personal finance-obsessed and money-savvy individual who loves to hash out content on all things saving money. He specializes in writing millennial-friendly personal finance content, covering topics ranging from trending financial news, debt, credit cards, cryptocurrency, and more.