Territorial Biting

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Some parakeets will bite to protect their cage.  Many parakeets will do this instinctively and just a natural protection mechanism. Your parakeet believes the cage is a nesting site.  Like most parrots, a nesting site can cause them to act aggressively to defend it.  Just sticking your hands into the cage will cause a nasty bite.

You can deal with this situation by always ensuring that the parakeet is not let out of the cage unless you allow it.  Many owners make the mistake of letting there parakeets crawl out of the cage as soon as they start exhibiting this behavior.  If you allow this behavior you are enforcing your parakeet to become territorial.  If your parakeet wants to come out of its cage, you need to allow it to physically step up onto your fingers and only then let it out of its home.  You should never allow your bird to make his own decision to come out of the cage.  Many owners usually allow their birds to come in and out of their cages at their leisure; however, it is not advisable because most of the time it leads to territorial biting.