Questions tagged [savings-account]

for questions specifically related to savings account. There is a general tag for "bank-account". Related tags "checking-account"

Filter by
Sorted by
Tagged with
45
votes
5answers
11k views

When to stop saving and start investing?

Since I started my first job after graduating a few years back, I always saved a certain percentage of my salary each month on an extra savings account my bank offers. At that time, and until recently,...
39
votes
16answers
21k views

Why would I ever put my money into a savings account that returns less than the current inflation rate?

I like a safe investment as much as the next guy. But can anyone give me a good argument on why I should invest in a bond or a savings account that returns less than inflation? It seems to me that I ...
37
votes
13answers
37k views

Is there a good rule of thumb for how much I should have set aside as emergency cash?

I'm buying my very first home, and should be receiving the $8,000 first-time home buyers tax credit. A majority of my savings are going to the down-payment of the house, but we still have a pretty ...
32
votes
4answers
9k views

Transfer over $10k

I recently realized that most of my money is going into my checking account where it's just sitting there losing value due to inflation, etc. I want to open a savings account at a different bank (...
31
votes
5answers
6k views

Short term parking of a large inheritance?

What are the options available for safe, short-term parking of funds? Today I received an inheritance check for $250,000 (I am in the U.S) and I don't know what to do with it – at least in the short ...
25
votes
5answers
9k views

How much money should I lock up in my savings account?

I'm a 28 software engineer. I make around 26k, of which about 40% I set aside every month. In my two-and-a-half years working I now have about 24k savings. I've recently opened an account that allows ...
22
votes
2answers
6k views

What is the purpose of “Regulation D”

When transferring funds between my savings account and my checking account, there is always a little help text about "Regulation D". Essentially it says that due to federal limits if I exceed 6 ...
20
votes
12answers
10k views

How to manage expenditure when billing cycles and paycheck cycles are not aligned?

I get paid on the 15th and the last of the month and my husband will be getting paid weekly when he starts a new job after the one he has been working at for 25 years will be closing soon. How does ...
16
votes
4answers
4k views

Do banks give us interest even for the money that we only had briefly in our account?

My father has just deposited ₹95,000 in my savings bank account with Indian Bank that I have to pay as fees to my university. I was thinking of paying the fees 1-2 days later, as I will get interest ...
16
votes
4answers
11k views

Pros/cons for buying gold vs. saving money in an interest-based account?

Over the years, I have noticed a certain pattern when it comes to money and gold. For example, my father bought a house 30 years ago for $20,000, and today that house is worth $200,000. If my father ...
16
votes
4answers
13k views

Does a savings/checking account sitting at $0 have any drawbacks?

I currently have a couple checking/savings accounts that are sitting at $0 because I found better accounts and switched banks for some reason or another, is it worth the time to try to close these ...
15
votes
12answers
19k views

Is it a good practice to keep salary account and savings account separate?

I read somewhere that salary account should be restricted to only receiving salaries and any spending, personal or otherwise should be carried out from your savings account. I am not able to find the ...
15
votes
7answers
5k views

Savings vs. checking account — when to prefer savings if interest is the same?

Let's say I'm opening a new checking or savings account, assuming: I already have another checking account All accounts offer the same interest rates Why would I ever choose to open a savings ...
14
votes
10answers
3k views

How can I enforce saving when I have a very limited income?

I have a very limited income (unfortunately) and have found I am practically incapable of saving. What are the best methods to enforce saving, however still have access to the money if required? Here ...
14
votes
6answers
10k views

Should I have separate savings accounts for various savings goals?

I have read through some personal budgeting articles and saving tips. Most articles and books mention saving money for emergency funds, large purchases, etc. Should emergency funds and saving funds (...
12
votes
3answers
13k views

can the government or debt collectors garnish money from any bank account to which the debtor has access?

A trusted family member has access to my savings account. The savings account is mine, but the family member's name appears next to mine, which means that they are entitled to withdraw money from the ...
10
votes
4answers
753 views

Should I switch to this high rate checking account for my emergency fund?

Okay, so I bank at a local credit union, AllegacyFCU. (Here is their rates sheet.) Currently I have through this bank: Daily Access Savings account with 0.2% interest Totally Free Checking (no ...
9
votes
4answers
689 views

What should I do with my HSA?

I recently changed companies, and the new employer does not have a HDHP. I have just under $2,000 in my HSA, but without any medical expenses to spend it on, it's just sitting there, slowly being ...
9
votes
1answer
467 views

Savings Account Rates vs. CD Rates vs IRA CD Rates

I have an IRA at Fidelity, and was looking into rates I could get for new issue CDs. I found that the best rate offered for a 1 year CD was 0.3%. I was surprised by this, as I currently have a (non-...
8
votes
2answers
7k views

Common practice to closing a checking and savings account?

Is there a common practice to closing a checking & savings account? For example, should I transfer all the funds electronically to my other bank then call and close it or is it better to get a ...
8
votes
2answers
702 views

What to do with $2115 disposable income per month?

I want to start investing money, as low risk as possible, but with a percentage growth of at least 4% over 10 - 15 years. I won't need this money until then so can handle locking it away or risking a ...
8
votes
1answer
272 views

Savings account versus corporate bond

I am looking at buying a bank corporate bond instead of placing money into a savings account. Say I buy a 2 year maturity corporate bond, that yields exactly 2% per year (in terms of yield to ...
7
votes
3answers
3k views

Why have U.S. bank interest rates been so low for the past few years?

I have some savings accounts in different banks and they all give 1.00% interest or less, and in many cases it is something ridiculous like $0.05 Would anyone be able to explain why this is happening?...
7
votes
1answer
248 views

What is the purpose of a short term CD that offers lower interest than a savings account?

I have noticed that some banks offer short term CDs with interest rates that are actually lower than that that the same bank pays on a savings account. For example Ally bank seems to offer a 0.30% ...
6
votes
4answers
1k views

What are the advantages of using credit card to pay most of expenses?

If I will pay most of my expenses via credit card, then is it correct to assume the following points? 1) My saving account interest rate will increase by somewhat (interest is calculated upon ...
6
votes
1answer
264 views

When making an online money transfer, why is one often asked whether the source account is checking or savings?

When making an online money transfer, why is one often asked whether the source account is checking or savings? Example in Merrill Edge (https://olui2.fs.ml.com/MoneyMovement/MakeTransfer.aspx):
6
votes
2answers
3k views

What are your thoughts (pros & cons) on all-in-one accounts, like Manulife One?

I think it looks very interesting, and certainly promises to deliver. My main concern is, as a single person, is it wise to put all of my eggs into one basket?
5
votes
2answers
2k views

Should I use a bank or a credit union for my savings account?

I have two checking accounts with a national bank, one which I have a debit card that I use for daily purchases, and one which I use just as a savings account. I leave that debit card stashed away at ...
5
votes
3answers
1k views

Is a High-Yield Savings Account with 1.25% APY too good to be true?

Okay, Sallie Mae is advertising a savings account with 1.25% APY. That seems incredibly high for a savings account, especially right now. It seems like a too good to be true type thing. Is there a ...
5
votes
4answers
4k views

Is there any benefit to keeping money in a checking account?

I have been getting a lot of "tips" from my bank lately about different ways to save. Things like "Save $1 week 1, $2 week 2", etc or "tax my spending habits". Whenever I see things like this, they ...
5
votes
1answer
2k views

Why does my checking/savings account offer a higher interest rate than a standalone savings account?

I have a bank account with checking and savings bundled together; if I make enough purchases with my debit card, I earn a higher interest rate on the savings. Today I decided to look at other types of ...
5
votes
1answer
668 views

What happens if my bank account is closed due to withdrawing

Because of federal law, you can't withdraw from a saving account more than 6 times in a month. I've messed up and done this (once because I did not know, again because I did not keep track) and if I ...
5
votes
4answers
339 views

Why is there so much variability on interest rate accounts

I'm looking for a safe way to get some interest on about $100k. I'm on a student visa in the USA (MA), so many types of account are not available to me. I'm thinking of going with a regular savings ...
5
votes
1answer
662 views

Safety of keeping savings in a mortgage account

I have a mortgage account and a separate (yet linked) savings account with a certain Australian bank. This bank draws a minimum mortgage repayment from the savings account into the mortgage account ...
4
votes
4answers
21k views

What's the purpose of having separate checking and savings accounts?

It's a simple question, but I'm having trouble finding an answer: What's the purpose of having separate checking and savings accounts? What benefits does it provide?
4
votes
3answers
186 views

Can we compare peer-to-peer loans to savings accounts?

A common argument to get involved in peer-to-peer lending (at companies like Lending Club, Prosper, Peerform etc.) is that savings accounts have an ROI that may be even lower than inflation, thus you ...
4
votes
3answers
974 views

Savings account vs Roth 401k

Is there any reason to have a savings account if you have a Roth 401(k), which allows early withdrawal of principal? If pooled together, couldn't you get the liquidity of a savings account and, if ...
4
votes
3answers
521 views

Why do French banks push hard that customers open a savings account?

In France account managers often offer their costumers that they open a savings account (Livret A as they call) on top of the checking account. From my point of view, those employees seem to have ...
4
votes
2answers
35k views

What's the difference between a Chequing account and a Savings account?

Because I know you can draw cheques from a savings account, so what gives?
4
votes
2answers
549 views

Official Bank Check

My mother purchased a bank check from her bank (that came from her savings account) for around $25-30K & was made out to a business partner. She passed away & I found the bank check in her ...
4
votes
2answers
621 views

What exactly is a time deposit?

I understand the function of a time deposit. You can make a deposit, and you cannot withdrawal (without a fine) for a set amount of time. Really what I'm confused upon is what types of accounts are ...
4
votes
2answers
349 views

Can a Roth IRA be used as a savings account?

If my understanding is correct, you can take out your contributions from your Roth IRA whenever you want without paying any penalties. If this is true, then other than the limit you can contribute to ...
4
votes
1answer
537 views

What should I be wary of when opening a savings account?

I'm looking to open a savings account (probably online) but I want to make sure I avoid any pitfalls. After looking at Bankrate.com I put toegether a bit of a list, but is there anything else I should ...
4
votes
1answer
423 views

How to minimize damage from sale of savings account

I've been a Bank of America customer for ~13 years and have maintained the same accounts during that period. I currently have a checking and savings account with them and have two credit cards (one ...
4
votes
2answers
13k views

Is amount transferred by third party to savings account considered as income?

If my friend transfers (using Third Party Transfer or NEFT) some money to my savings account, does that amount count as my transfer income and do I have to pay tax on it?
3
votes
3answers
767 views

Using multiple bank accounts

One thing I've always struggled with finance-wise is how to manage higher-level budget categories across a limited number of accounts. For instance, I currently maintain the following types of ...
3
votes
1answer
2k views

Anyone have experience with Brink's 5% savings account?

If you get a Brinks prepaid MasterCard (no initial fees, and you can even get a $20 signup bonus) and go through some other gyrations, you can presumably get access to a 5% FDIC-insured savings ...
3
votes
2answers
686 views

interest compounded daily vs monthly

I want to compare two saving accounts with same APY, but one has interest "compounded daily and credited monthly" and the other has interest "compounded monthly and credited monthly". Which will yield ...
3
votes
1answer
726 views

Can I open a savings account in India with the salary I earn in UK?

I am an Indian national who recently moved to UK for a job and found out that the interest rates here in UK are abysmal. The rates in India are much higher. Almost tenfold. Can I transfer the salary ...
3
votes
4answers
378 views

What is the preferred way to set up personal finances?

I'm trying to figure out how to set up a personal finance system that is simple. I want to know things like: How many bank accounts should I have and what kinds, and how much (percentage-wise) of my ...