Comments on: The Benefits of Multiple Banking Accounts http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/ Bridging the gap between saving money and investing Fri, 25 Jul 2008 01:55:31 +0000 http://wordpress.org/?v=2.3.2 By: reflectionite http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-267953 reflectionite Wed, 19 Mar 2008 04:59:33 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-267953 linda t: sorry i didnt know you had asked that q months ago, but in case you ever check back i will answer the question anyway! umm i thought they were pretty standard interest rates? now they are even higher, one at 7.15 and the other at 7.75%. they are just the standard ING and Bankwest accounts, nothing special. my commonwealth netsaver account is just at 6.95% now. linda t: sorry i didnt know you had asked that q months ago, but in case you ever check back i will answer the question anyway!
umm i thought they were pretty standard interest rates? now they are even higher, one at 7.15 and the other at 7.75%.
they are just the standard ING and Bankwest accounts, nothing special. my commonwealth netsaver account is just at 6.95% now.

]]> By: ariyana http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-267343 ariyana Mon, 17 Mar 2008 18:22:42 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-267343 Having mulitple accounts are great 4 me, especially when it comes to the time of emergency fund needed and where you have one wher all you do is deposited with one checking and one saving from the same bank institution you get tempted to withdraw from your saving when times get tight..as a young person I find it very helpful so I know that I am still saving a little when spending and not having to dabble in the other :) good article. everyone is diffrent i feel like if you can handle the multiple task and it help fine and if you can't then kepp doing what's best for you. :) thanks Having mulitple accounts are great 4 me, especially when it comes to the time of emergency fund needed and where you have one wher all you do is deposited with one checking and one saving from the same bank institution you get tempted to withdraw from your saving when times get tight..as a young person I find it very helpful so I know that I am still saving a little when spending and not having to dabble in the other :) good article. everyone is diffrent i feel like if you can handle the multiple task and it help fine and if you can’t then kepp doing what’s best for you. :) thanks

]]> By: Linda T http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-139102 Linda T Tue, 06 Nov 2007 05:36:28 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-139102 reflectionite - how are you getting those interest rates? I know they are different in different areas, but those are great rates and I haven't seen anything like that where I live or on th ING web site. Can you elaborate? I am really interested. reflectionite - how are you getting those interest rates? I know they are different in different areas, but those are great rates and I haven’t seen anything like that where I live or on th ING web site.

Can you elaborate? I am really interested.

]]> By: A Marino http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-137202 A Marino Sun, 04 Nov 2007 06:41:06 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-137202 I could have written this article because it sounded so much like what I do. I have found lately that it is better to deposit paychecks into the bank money market fund each week that gets a good rate and once a month, transfer money to the house checking account to pay the smaller bills. I can use 3 checks from the money market account and they are usually the larger checks. I transfer any money or savings to any online savings accounts. What a great concept in spreading your money around in case one account got sabotaged. I never really looked at it that way. I could have written this article because it sounded so much like what I do. I have found lately that it is better to deposit paychecks into the bank money market fund each week that gets a good rate and once a month, transfer money to the house checking account to pay the smaller bills. I can use 3 checks from the money market account and they are usually the larger checks.

I transfer any money or savings to any online savings accounts. What a great concept in spreading your money around in case one account got sabotaged. I never really looked at it that way.

]]> By: Gail http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-136193 Gail Fri, 02 Nov 2007 18:13:13 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-136193 We have several accounts and it does help with organization. When I was still working and had to drive alot, I got reimbursed for mileage. I had a seperate savings account just for my car. When I got each reimbursement, I subtracted out what I had actually spent in gas and put the rest in the account. In no time whenever I had a car repair needed, I had the money in the account to cover it instead of that horrible deep down feeling of doom. My co-worker used her mileage as an extension of her paycheck and never saved any of it--she has subsequently gone bankrupt (obviously for more than car expenses). I knew with the amount I was driving it would take a toll on the car and she ignored it. I find it interesting that several commenters liked the idea and did much the same themselves and then others think it is a lousy system, or at least not needful. My feeling is that anything that works to keep a person solvent fiscally is worth doing, even if they miss some interest. At least they are thinking about and working to be sure all bills are paid and money is being saved. It is of course, important to get the highest interest rate possible for long term savings such as retirement, but day to day expenses doesn't necessarily need the high interest, it just needs to be there when needed. We have several accounts and it does help with organization. When I was still working and had to drive alot, I got reimbursed for mileage. I had a seperate savings account just for my car. When I got each reimbursement, I subtracted out what I had actually spent in gas and put the rest in the account. In no time whenever I had a car repair needed, I had the money in the account to cover it instead of that horrible deep down feeling of doom. My co-worker used her mileage as an extension of her paycheck and never saved any of it–she has subsequently gone bankrupt (obviously for more than car expenses). I knew with the amount I was driving it would take a toll on the car and she ignored it.

I find it interesting that several commenters liked the idea and did much the same themselves and then others think it is a lousy system, or at least not needful. My feeling is that anything that works to keep a person solvent fiscally is worth doing, even if they miss some interest. At least they are thinking about and working to be sure all bills are paid and money is being saved. It is of course, important to get the highest interest rate possible for long term savings such as retirement, but day to day expenses doesn’t necessarily need the high interest, it just needs to be there when needed.

]]> By: reflectionite http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-135730 reflectionite Fri, 02 Nov 2007 06:24:19 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-135730 i started doing this system about a year ago and i like it, i dont think its too complex and i think that if it doesnt work for you, then it doesnt, but for some people it DOES work. i have always had a bills account which is linked to my main account. i deposit a portion each week which should account for all my bills through the year. i also have an ING account and a bankwest account. my ing account is used for my EF and holiday money, and my bankwest account, which has a higher interest rate, has the money i am using to save for a house deposit. i keep the largest sum in this account because it is at 7.15% at the moment. my ING account is at 7%. my bills account also is at 6.85%. the amounts in these last two are only a couple of hundred dollars at each time, so it doesnt bother me and i would rather have them separate so i know exactly which is which. also another trick i have picked up is, when interest is calculated on the last day of the month, the very next day i transfer most of the funds from all these accounts into my loan account, where interest is calculated on the 8th of the month, so effectively i save a few bucks here too. then i just trasnfer it back later. and before you say anything, NO, this doesn't cost me ANYTHING. :) i started doing this system about a year ago and i like it, i dont think its too complex and i think that if it doesnt work for you, then it doesnt, but for some people it DOES work. i have always had a bills account which is linked to my main account. i deposit a portion each week which should account for all my bills through the year. i also have an ING account and a bankwest account. my ing account is used for my EF and holiday money, and my bankwest account, which has a higher interest rate, has the money i am using to save for a house deposit. i keep the largest sum in this account because it is at 7.15% at the moment. my ING account is at 7%. my bills account also is at 6.85%. the amounts in these last two are only a couple of hundred dollars at each time, so it doesnt bother me and i would rather have them separate so i know exactly which is which.
also another trick i have picked up is, when interest is calculated on the last day of the month, the very next day i transfer most of the funds from all these accounts into my loan account, where interest is calculated on the 8th of the month, so effectively i save a few bucks here too. then i just trasnfer it back later. and before you say anything, NO, this doesn’t cost me ANYTHING. :)

]]> By: Jo http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-135067 Jo Thu, 01 Nov 2007 13:01:35 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-135067 I used to employ this method, but had to scale back; it got too difficult to keep track of in order to make sure I wasn't missing something. I now use one checking account for all my monthly bill paying. This is where my direct deposit goes. I use a register that is in spreadsheet format from budgetmap.com. Very handy, as well as the checking account being an interest earner for me (4.03% APY). So, if there is money left over at the end of the month, I can shift this to savings and to a category labeled "Cushion" since my goal is to build up a cushion as a means of overdraft protection. I do have a money market account at EverBank that I do not touch. This is where I save my quarterly health insurance premiums. When it's time to make a payment, I just write a check and I am set for three months. But each month I do set aside the equivalence of one month's premium in the account to earn interest. I have an extra amount attached to that transfer for a separate category. I have to admit that when I first started this, I honestly believed it was just me. Obviously, this is not the case. A method to the madness, I suppose. I used to employ this method, but had to scale back; it got too difficult to keep track of in order to make sure I wasn’t missing something.

I now use one checking account for all my monthly bill paying. This is where my direct deposit goes. I use a register that is in spreadsheet format from budgetmap.com. Very handy, as well as the checking account being an interest earner for me (4.03% APY). So, if there is money left over at the end of the month, I can shift this to savings and to a category labeled “Cushion” since my goal is to build up a cushion as a means of overdraft protection.

I do have a money market account at EverBank that I do not touch. This is where I save my quarterly health insurance premiums. When it’s time to make a payment, I just write a check and I am set for three months. But each month I do set aside the equivalence of one month’s premium in the account to earn interest. I have an extra amount attached to that transfer for a separate category.

I have to admit that when I first started this, I honestly believed it was just me. Obviously, this is not the case. A method to the madness, I suppose.

]]> By: Creative Investor http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-134766 Creative Investor Wed, 31 Oct 2007 21:08:15 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-134766 I would probably stick with Brian here: I don't really think that having two savings and two checking accounts is necessary. The reason I think having one savings and one checking account is just fine as far as security goes because you really shouldn't keep that much in those accounts anyway. There are plenty of financial instruments where you money will have a better home: CDs, bonds, mutual funds, stock market, you name it. I think Jennifer's set up would be most beneficial to people who need to see physical separation of funds into different accounts: CAN spend from this accounts, CAN'T spend from this account. May not be for everybody, but there are plenty of people who could benefit from such a system. I would probably stick with Brian here: I don’t really think that having two savings and two checking accounts is necessary. The reason I think having one savings and one checking account is just fine as far as security goes because you really shouldn’t keep that much in those accounts anyway. There are plenty of financial instruments where you money will have a better home: CDs, bonds, mutual funds, stock market, you name it.

I think Jennifer’s set up would be most beneficial to people who need to see physical separation of funds into different accounts: CAN spend from this accounts, CAN’T spend from this account. May not be for everybody, but there are plenty of people who could benefit from such a system.

]]> By: Brian http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-134686 Brian Wed, 31 Oct 2007 17:57:09 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-134686 Idea is great but your system is way too complex? I agree with the direct deposit for the IRA's but I do not see a reason for a multiple savings and checking. I have a ING savings (currently 4.9%) which I keep all of my money in except for a couple of thousand in checking to pay bills. It is very easy to transfer funds from my bank to ING or vice versa. ING is also FDIC insured and extremly secure so I have no worries about cracking my account. In summary, I would keep high amounts of cash in a high yield savings account and keep as little as possible in one checking account which is earning little to no interest. I find it pointless to seperate all living expenses which include mortgages, insurnace, grocery, movie rentals, etc. If this is the case I would suggest getting a software program to help you track your spendings. Idea is great but your system is way too complex? I agree with the direct deposit for the IRA’s but I do not see a reason for a multiple savings and checking. I have a ING savings (currently 4.9%) which I keep all of my money in except for a couple of thousand in checking to pay bills. It is very easy to transfer funds from my bank to ING or vice versa. ING is also FDIC insured and extremly secure so I have no worries about cracking my account.

In summary, I would keep high amounts of cash in a high yield savings account and keep as little as possible in one checking account which is earning little to no interest. I find it pointless to seperate all living expenses which include mortgages, insurnace, grocery, movie rentals, etc. If this is the case I would suggest getting a software program to help you track your spendings.

]]> By: MikeVx http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-134409 MikeVx Wed, 31 Oct 2007 03:38:17 +0000 http://www.pfadvice.com/2007/10/30/the-benefits-of-multiple-banking-accounts/#comment-134409 I've been doing multiple accounts for years. My household account is used for all the usual stuff, then I have specialty accounts. Two checking accounts for debit cards (risk minimization) (my main account has only an ATM card on it). A checking account for a personally-managed property-tax escrow function. I just write the checks off that account twice a year. Then there is the ING account, where I stow money for saving, goal-oriented savings, the emergency fund and the investment buffer. At least for me, Murphy has a much bigger target to aim for. I’ve been doing multiple accounts for years. My household account is used for all the usual stuff, then I have specialty accounts. Two checking accounts for debit cards (risk minimization) (my main account has only an ATM card on it). A checking account for a personally-managed property-tax escrow function. I just write the checks off that account twice a year.

Then there is the ING account, where I stow money for saving, goal-oriented savings, the emergency fund and the investment buffer.

At least for me, Murphy has a much bigger target to aim for.

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