Do you have a Savings Account?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills

Do you have a Savings Account?

Yes
190
86%
No
31
14%
 
Total votes: 221

takeshi
Posts: 1175
Joined: Thu Oct 03, 2013 10:02 pm

Re: Do you have a Savings Account?

Post by takeshi » Wed Jan 29, 2014 12:49 pm

We have several. No idea how the other half users hers. Mine is mainly for overdraft protection and to help deal with small fluctuations in monthly cash flow but mostly sits untouched. A third account is for pooling funds for emergency use, major spend and as a holding pen until enough is accumulated to find a more suitable way to utilize the funds. Another account is simply to avoid the AF and lowered rewards rate for my PenFed Platinum Cash Rewards card and only has the minimum required balance. I guess the share account technically qualifies but I really don't consider as such.

GeauxBR
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Location: Baton Rouge

Re: Do you have a Savings Account?

Post by GeauxBR » Wed Jan 29, 2014 1:09 pm

We have one that holds our e-fund. Once we hit the "number" we left it alone and the money we were budgeting to save every month is now on auto draft to max the roth's.

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Sunny Sarkar
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Re: Do you have a Savings Account?

Post by Sunny Sarkar » Wed Jan 29, 2014 1:20 pm

No savings accounts here - I do not like the opacity of bank accounts re: what they are doing with my money (sub-prime mortgages or $5billion crazy bets). I use Short-Term Tax-Exempt (avg. maturity 1.2 yrs) - a tad riskier on paper, but at least the risks are mostly visible to make an informed decision.
"Cost matters". "Stay the course". "Press on, regardless". ― John C. Bogle

gte939h
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Re: Do you have a Savings Account?

Post by gte939h » Wed Jan 29, 2014 1:26 pm

I use a money market savings account that gives 0.45% for my EF. Was thinking of moving to one of the online banks recently but I like being able to get to that money quickly if I need it. I'm still debating if it is worth moving 50-75% of the EF over to an online bank to get the twice the return...

Stupendous
Posts: 101
Joined: Thu May 05, 2011 12:22 pm

Re: Do you have a Savings Account?

Post by Stupendous » Wed Jan 29, 2014 7:09 pm

I have my savings in 2 rewards accounts. $15K @ 3.0% ($15K limit) and $25K (goal of $35K) @ 1.25% (unlimited). The checking account without a limit is where all bills are paid from.

My budget worksheet has a table that shows what balance is needed to have a 1 to 24 month emergency fund. I mentally keep note of that with respect to my checking account that is actively used for bill paying. Currently at 15 months with a goal of 24. Sometimes when I feel like it I'll move money to my index funds at Vanguard.

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abuss368
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Re: Do you have a Savings Account?

Post by abuss368 » Thu Jan 30, 2014 4:20 pm

Thank you everyone thus far. A lot of different cash management techniques and strategies.

Overall based on the poll results, it is clear at 85% of respondents use a savings account.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

tcjbum
Posts: 33
Joined: Tue Oct 15, 2013 8:18 am

Re: Do you have a Savings Account?

Post by tcjbum » Thu Jan 30, 2014 4:24 pm

Sunny Sarkar wrote:No savings accounts here - I do not like the opacity of bank accounts re: what they are doing with my money (sub-prime mortgages or $5billion crazy bets). I use Short-Term Tax-Exempt (avg. maturity 1.2 yrs) - a tad riskier on paper, but at least the risks are mostly visible to make an informed decision.
I don't quite get that. Let 'em bet. FDIC-insured means no risk of loss of principal for double or triple the yield of VWSTX.

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abuss368
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Re: Do you have a Savings Account?

Post by abuss368 » Thu Jan 30, 2014 4:26 pm

tcjbum wrote:
Sunny Sarkar wrote:No savings accounts here - I do not like the opacity of bank accounts re: what they are doing with my money (sub-prime mortgages or $5billion crazy bets). I use Short-Term Tax-Exempt (avg. maturity 1.2 yrs) - a tad riskier on paper, but at least the risks are mostly visible to make an informed decision.
I don't quite get that. Let 'em bet. FDIC-insured means no risk of loss of principal for double or triple the yield of VWSTX.
I agree. Good point.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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pennstater2005
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Joined: Wed Apr 11, 2012 8:50 pm

Re: Do you have a Savings Account?

Post by pennstater2005 » Thu Jan 30, 2014 4:41 pm

I use my savings account for non retirement items such as new roof, furnace, etc. It is also spillover money into the checking as needed. In short, it's my emergency fund.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

tj
Posts: 2240
Joined: Thu Dec 24, 2009 12:10 am

Re: Do you have a Savings Account?

Post by tj » Fri Jan 31, 2014 6:27 pm

I have some savings accounts, but I don't really use them. My Alliant Credit Union checking account has a rate 0.65%. It doesn't seem worth maintaining a separate savings account for minimally higher yield.

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mickeyd
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Re: Do you have a Savings Account?

Post by mickeyd » Sat Feb 01, 2014 2:15 pm

Our cash is spread in three different directions.

For monthly expenses and all income our USAA checking account has worked well for us. After monthly reconciliation, I scrape off any cash that is over $1K in the checking account and move it electronically to my Ally online savings (0.85% APY) for future cash use.

My third account that I consider as "cash" is the VG ST Bond fund that currently has an SEC Y about 0.78%. That's for longer term cash use, but I have never had to tap it so far so monthly dividends buy more shares.
Last edited by mickeyd on Wed Feb 19, 2014 7:02 pm, edited 1 time in total.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

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abuss368
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Re: Do you have a Savings Account?

Post by abuss368 » Wed Feb 19, 2014 11:42 am

This has been a very informative post. Any additional thoughts or feedback?

Thanks again.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Leif
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Re: Do you have a Savings Account?

Post by Leif » Wed Feb 19, 2014 12:20 pm

I have cash in my brokerage MM account earning 0.01% for immediate cash needs. Money not needed in the next 30 days goes to my high yield (ha ha) 0.85% savings account. That is my emergency fund money and to pay quarterly estimated taxes.

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abuss368
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Re: Do you have a Savings Account?

Post by abuss368 » Wed Feb 19, 2014 10:04 pm

There was a time when money markets paid a much higher rate indeed.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

Quest80
Posts: 35
Joined: Mon Jan 20, 2014 11:22 pm

Re: Do you have a Savings Account?

Post by Quest80 » Wed Feb 19, 2014 10:30 pm

kerplunk wrote:I just opened a Discover Bank online savings account today, actually. The bank where my checking account is is giving me a phenomenal 0.01% savings account interest rate, so I figured 0.85% APY for money I will need for this year made a lot more sense.
I sometimes wonder if the banks think we are so stupid that we don't understand what .01% is. It's not 1% and it's not even 1/10th of 1%. It's 1/100th of 1%. Geez - why bother?

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