Post # 1
Member
2832 posts
Sugar bee
- Wedding: December 2017 - Courthouse
I have a dumb question to ask and I wanted to gage how other people handle this.
How many Bees have a savings account? Has anyone found a savings acct that has a decent interest rate?
Before we got married, my now husband and I each had one checking account and one credit card. Once we got married we cancelled my checking account and transferred the money to my husband’s. (He makes way more money than me and my bank sucked so it was a win-win). He also has a super old savings account through the same bank that has like $70 lol. He totally forgot about it. (The APY is .25%)
Our checking account is getting to the point where I feel like a majority of the money doesn’t need to just sit there, it can be moved to make interest. I just know interest rates usually are barely worth it. And to be completely honest, we both like being able to open the checking acct. and see all of our money right in front of us.
For what it’s worth, I also have a private retirement plan that also has money building, but that’s totally separate and are hoping to not touch that money until retirement.
ETA: Should we have a savings account or just skip it?
Post # 2
Member
3422 posts
Sugar bee
I have tried to post 4 times and I keep winning an amazon gift card!
You can find a higher interest rate than .25%, but it won’t be anything crazy, but I highly recommend moving your cash out of your checking account for safety reasons. My account was cleared out once due to skimmers on an ATM I used. Luckily I got it back, but I have had friends who lost it all.
Post # 3
Member
5944 posts
Bee Keeper
sarathemermaid : We have a couple savings accounts partly because checking is fair game. “Oh, we have money, let’s go to dinner!” But mostly because one is for house updates and fixes and one is for general stuff (hey, let’s get a new tv stand etc)
Post # 4
Member
2832 posts
Sugar bee
- Wedding: December 2017 - Courthouse
sharpshooter : holy crap! That’s crazy scary! And yea I feel like there’s really no reason to just let it sit there.
Post # 5
Member
2832 posts
Sugar bee
- Wedding: December 2017 - Courthouse
ButternutPoppy : That sounds like a good solution. We also don’t own a home yet so I feel like we need to get our account(s) sorted before then to make things easier.
Post # 6
Member
5088 posts
Bee Keeper
We have a savings account, it makes next to nothing in interest, but I like having that money separate, that way I forget that I have it and it just stays there. The checking just has what we need to pay for things.
Post # 7
Member
8757 posts
Buzzing Beekeeper
sarathemermaid : I use Ally and the current interest rate is 1.45%. It’s not
amazing but it’s better than most banks. I also like that it isn’t accessible via ATM for security.
If you like being able to see all your money in one place I would recommend a Personal Capital account. You can see EVERYTHING (banks, credit cards, retirement, mortgage, loans, whatever) in one spot.
Post # 8
Member
104 posts
Blushing bee
I would definitely open a savings account, and then I would work on getting it to a balance you are comfortable with.
THen I would consider either using the .25% account or opening another for any major savings goals you have. I keep a set amount in my account like this for buying a house/car and then take anything over that amount and invest it. I just like to have a certain amount that isn’t at risk.
If you have ample savings and just feel like you have too much cash, I would recommend using a brokerage site and starting to invest in some liquid investments. This way your cash is working for you! I follow Motley Fool because I am a JV investor, but it definitely has done me a lot of good to stop stock piling my money in the bank. (If you are a US bee, the market is down right now and its a great time to buy!)
I am a big proponent of having your money different places though! I personally have 6 accounts + 2 401ks + 2 investment brokerage accounts, because I like to have a purpose for every dollar and buckets make that so much easier! Just use a bank that doesn’t charge fees 🙂
Post # 9
Member
2832 posts
Sugar bee
- Wedding: December 2017 - Courthouse
LilliV : Oh awesome. Thanks for those recommendations! And isn’t Ally internet only so you don’t need a branch near you?
Post # 10
Member
1485 posts
Bumble bee
sarathemermaid : yes you should have a savings account and a roth IRA or some other retirement fund. As an example, I put 10% of my income into a ROTH IRA and $50 a week into my savings (all I can afford) as a rainy day fund.
AND you should have your own account period end. You never know if the proverbial sh*t may hit the fan and what will you do if all your money is tied up in husbands account? Just a thought.
And I think you meant %0.025 but if it is in fact 25% please share what bank lol
I do Bank of America (I know, they suck!) but I can see all my accounts – 2 checking and 1 savings- all on my mobile app its really cool. I can also put checks into it with my mobile device, do automatic deposits, and automatic payments.
Good luck!
Post # 11
Member
104 posts
Blushing bee
avprobeauty : I second this! A Roth IRA is such a powerful tool that so many people don’t use. You do have to contribute after tax dollars, but the growth is tax free!! If you invest 5,000 this year in a Roth and retire in 40 years it would be over 50k (conservative growth)! And you would only have ever paid tax on 5k of it!! Blows my mind the goverment has kept this around, but use it 🙂
Post # 12
Member
8757 posts
Buzzing Beekeeper
sarathemermaid : exactly! You link it to your primary checking account and they also have mobile check deposit. Ours is set up to just automatically move a set dollar amount from the brick-and-mortar checking account into Ally every week. And as PP said, once you have excess cash (more than 6 months emergency fund, plus any savings you plan on using soon) a brokerage account is an excellent way to earn more on your money. We use Fidelity, but there are lots of great options.
Post # 13
Member
333 posts
Helper bee
I have a couple of savings accounts and my fiance has one. We are currently consolidating all of our liquid cash savings into a money market acct that earns 1.75% APY for when we want to buy another home later.
If you have extra cash and dont make over the maximum income limit then definitely invest into a Roth IRA. You can invest 5500/year.
Post # 14
Member
8757 posts
Buzzing Beekeeper
avprobeauty : Lots of couples choose not to have separate accounts – it isn’t the be all and end all to keep the money separate. Although she should be listed as a joint owner on his account, and if not that needs to be fixed ASAP. My husband closed his account and joined mine when we got married, but he’s a joint owner on it.
Post # 15
Member
1104 posts
Bumble bee
sarathemermaid : only keep 6 months of living expenses in your savings account. Everything else should be invested in some way — stocks, mutual funds, CDs, money markets, etc. talk with a financial advisor or do your own research. Keep a solid nest egg (6 months of living expenses) but make the rest of your money work for you.