Advice Money. In our houses and apartments, we store stuff in a million clever places and ways. So we put a lot of thought and energy into the storage of all of our stuff, but what about the storage of our money? Our wealth deserves the same love as all the buttons, seashells, and Polaroids we store in mason jars and drawers. Really, it deserves all that and more. But in a world with hundreds of storage options, it can be daunting to know which types of accounts we should be opening or closing and where.
2. Savings Account
Posted by Michael Timmermann Jan 27, Banking 6. I drew this picture to illustrate the four bank account system that I implemented during my mortgage payoff:. Old plan: 2 online accounts and 2 traditional accounts. My paycheck was split between two checking accounts one with a traditional bank and the other with an online bank , then I manually transferred funds to two savings accounts. Separating variable expenses from fixed costs really helped me control impulse buys. This setup also enabled me to keep most of my money in an online bank with a high interest rate and no fees. My paycheck now goes to one checking account, which I have with Discover Bank.
Not every type of bank account is created equal. Some may not require a minimum balance or charge fees—win! While others may penalize you if you take money out at the wrong time. Basic checking and savings accounts are a great starting place for everybody. And then from there, you can branch out into different types of bank accounts where your money can really start to add up. The most basic type of bank account is the checking account. Think of it as home base. Checking accounts, which you can set up at a traditional or online bank, come with a debit card.