Connecting your bank and credit card accounts to personal finance apps and services can make money management much easier. Automatic import of transactions eliminates manual entry and reconciling. Categorization and reporting provide useful insights. While linking accounts requires sharing your financial data, the benefits often outweigh the risks when using reputable apps. Follow these steps to safely and securely connect your accounts:
Choose a Personal Finance App
The first step is selecting a personal finance application that supports account connectivity. Popular choices like Mint, Personal Capital, YNAB (You Need a Budget) and EveryDollar let you integrate accounts. Compare features like budgeting tools, mobile apps, investment tracking and account security to pick the best option for your needs.
Evaluate Data Sharing Policies
Before moving forward, review the app's policies for handling your banking username, password, account data and personal information. Account connectivity requires sharing private data so be sure you understand and are comfortable with how the developer protects, uses and shares your information. Select an app that encrypts all data and has a trusted track record.
Enable Two-Factor Authentication
Check if your financial institutions allow users to enable additional security protocols like two-factor authentication. With two-factor authentication, users must provide an additional piece of identifying information (like a code sent to your phone) when logging in from a new device. This prevents unauthorized access even if your username and password are compromised. Turn it on for added protection.
Create Strong and Unique Passwords
Never reuse passwords between accounts, especially for critical financial accounts. If one account is breached, unique passwords prevent access to your other accounts. Use randomly generated lengthy passwords or passphrases that would be difficult for hackers to guess. Password manager apps also help create and remember strong credentials for each account.
Start with Non-Critical Accounts
Consider first linking lower risk accounts like a secondary credit card or savings account. Monitor for any suspicious activity for a month before connecting your primary checking account or account used for bill pay. Taking smaller initial steps can help you gain confidence in the app’s security and account connectivity.
Enter Credentials in the App Interface
When ready to connect, log into your financial institutions directly and access account settings. Verify you see options to enable third-party account access or that the institution supports the app you want to connect. Then open the personal finance app and find the page to add accounts. Enter your bank and credit card credentials only through the app's official interface.
Connect One Account at a Time
As you link accounts, do so individually and verify each connection is successfully established before moving on to the next account. Moving slowly guards against potential errors that could lead to incorrectly configured or duplicated accounts pulling your transaction data. Test connectivity and review initial transactions.
Deactivate Automatic Syncing
Some apps automatically sync connected accounts on a schedule. You may prefer to manually initiate syncs so you have full control over when the data refreshes. Check settings and disable automatic background syncing if that makes you more comfortable, especially when first getting started.
Enable Transaction Notifications
Take advantage of account alerts offered by your financial institutions and personal finance apps. Set up email or push notifications for any transaction over a threshold you define so you can monitor account activity frequently. Watch for unknown transactions that could indicate fraudulent use of your account credentials.
Periodically Change Passwords
Make a habit of periodically updating your passwords and security questions. This protects against potential unauthorized access from previous breaches or password leaks over time. Review connected apps and reset credentials directly with your bank and credit card companies to maintain control.
Disconnect When Not In Use
If you find yourself no longer actively using a particular personal finance app, take the time to formally disconnect your linked accounts. Most apps include options to deactivate connections. Taking this extra step limits third party access when no longer needed to analyze your data.
Connecting accounts provides immense convenience and financial visibility. But sharing your sensitive account credentials also warrants caution. Taking it slow, limiting data access and proactively managing security lessens the risks. With smart steps, you can safely reap the rewards of seamless money management.