Post # 1
So this probably sounds like a “duh” thing to ask about, but really, I’m quite clueless.
I don’t have a savings account. I get paid every other week and I drop enough into our joint account to pay all our bills. When DH gets paid for Drill weekend, he puts that in there, too, and we put that into our house. Whatever’s left over from my paycheck goes into my personal checking/savings account. Yep, slash. I have a hard time keeping track of it all in one place so I’m starting to think about how it’d be good to have some savings so that when I buy a car in a few years, I can put some cash down and my payments will be manageable, plus save on the interest. Or, go back to school. Or emergency fund, whatever.
There are so many types of savings accounts out there…what should I look into? I’m thinking a “goal savings” account and then I can have a certain amount from my paycheck dropped in each time, plus, no penalties when I do decide to spend it on something like a car?
Thoughts? I’m thinking this is a good way to give myself $500/month in my personal checking account and sock away about $1,500/month in my savings account. Do I sound reasonable? I really don’t know what’s a “good” way to approach this. I’m lost. Is a percentage a better way to go? What do you all do? Thanks!
Post # 3
My FI and I each have our own savings accounts plus we have a joint savings account for the wedding. You should be able to set it up with your employer to put a certain amount of your pay (either percentage or dollar amount) into your savings account instead of depositing it into your checking account. To set up the accounts, I just went to my local bank and they helped us pick out which option was best for us.
Post # 4
I would look for an online savings account. The rates are usually higher than the ones that you get at other banks. It takes a little while to transfer the money from your savings to checking though so if you are in a serious cash emergency, you might have to use plastic temporarily until you can transfer it out.
If you can afford $1,500 a month then do it! I have to ask though, are you funding your retirement accounts too?
You can find online savings accounts by looking at bankrate.com’s listing of accounts by interest rate. Also, SmartyPig is a goal savings account.
Post # 5
I only have automatic deposit from work, which is how both of my accounts are set up already. But some of the savings accounts are tied to a checking account (doesn’t matter to me if it’s a deposit from work or a deposit from another account) but there are a bunch of different types of savings accounts.
Post # 6
I do my banking with USAA, and it would prob be a great option for you (I think it should be available for you). I usually just stay on top of my finances with their website. I don’t have any automatic transfers from checking to savings, but you can definitely set those up. Their customer reps are always very nice, so you might want to give them a call to see what your best option is.
Post # 7
Oooo thanks, MissAsb.
Retirement account is already taken care of. I put some in every month and my company puts in 20% of what I put in.
Post # 8
I have a savings account with Capital One that gives me good rates and I can write checks from the account. It is called direct banking because I am not allowed to go into a branch and use a teller. If I have money to deposit, I can do it electronically from my Chase accounts or mail my checks to them. I have it set up so that the Capital One account gets a certain amount dumped into it from my regular checking account each month. I like having the account be harder to access because it makes it a little harder to pull money out, which means I probably won’t.
Post # 9
I just have “regular” checking and savings accounts, which are linked. We also have a joint checking account which we use to pay the mortgage, and save for house-related expenses only. I am paid via direct deposit every two weeks, and have a set portion of my check go to my savings, checking and the house checking account each pay period.
Any money left-over in my checking account at the end of the month, I “sweep” back into my savings account (minus a little cushion cash which always stays in the checking account).
I’ve found having a separate savings account, and directly depositing money into the savings account has been REALLY helpful. If I have the money in checking, I’ll generally find a way to spend it, but if it’s not there, I won’t.
Post # 10
- Wedding: January 2011 - Vintage Villas
You should look into ING Direct! It’s an online bank, and the interest rates for savings accounts are much higher than most brick and mortar banks. I use them for my savings account, and it’s great – really easy to use!
Post # 11
Great job with the retirement funding! For full disclosure, we use Discover Bank for our savings. Gets 1.35% APY right now (because interest rates suck) but better than the .2% I would get with our savings at our local bank.
Post # 12
I have the ING Orange savings account. It’s online banking and super easy. You can link the orange savings account to your checking account and go online and transfer money back and forth between the accounts very simply. I’ve been really happy with it.
Post # 13
I have HSBC which I use for both my savings and chechking. I use the online account for my savings, and it has a really good interest rate. I do all my transfers between both accounts and they are immediate. The only transfer that takes a day or two is from either account to credit card.
Post # 14
I also say go with ING! It’s all online, they give out higher rates, and you can set up links to your other accounts for easy transfers.
Post # 15
I just have it at my local bank (Chase) there’s a minimum balance, but it’s only 1k. I think it’s a $10 fee if you go below or something but I never have. There’s no penalty for me to withdrawal money as long as I stay above the minimum balance. I try to save 20% each month, usually ends up averaging out around 17% for they year. The interest rate is pretty crappy though.
Post # 16
DH and I are super type A control freaks and HAVE to be organized…ok, maybe I’m more the control freak. LOL But, in terms of savings accounts, we literally have about 7 different accounts for the different “funds” we’re saving for: house, car, baby, emergency, etc. We have specific goals of what we want in each fund, so I HAVE to keep them separate or I would go nutso trying to figure out which should be allocated where. Once our short-term funds are met, we’ll start really building up our actual “savings.” We’re just about done building up our house fund, so as soon as it’s done, the money that was going into it will be allocated to a different fund…It’s been working out well so far.