Why You Shouldn't Link Your Bank Account to Budget Apps

January 2026 • 5 min read

Most budget apps want your bank login. Here's why you might want to say no.

How Bank Linking Works

  1. You enter bank credentials
  2. Credentials go to Plaid, Yodlee, or similar
  3. They log in as you
  4. They scrape your transaction data
  5. Data is sent to the app

The Risks

Data Breaches

More companies with your data = more breach risk. Plaid and banks have both been breached.

Terms of Service

Read the fine print. Many apps can use your data for "product improvement" and "partner offers."

Credential Exposure

Even with encryption, your login passes through third parties.

Account Access

Some aggregators have write access, not just read. A bug could be catastrophic.

The Alternative

Manual tracking with Pocket Clear:

It takes 30 seconds per transaction. That's a small price for peace of mind.

Start Tracking Together

Download Pocket Clear free. Simple expense tracking for couples and expats.