Bank Accounts

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abuss368
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Bank Accounts

Post by abuss368 » Wed Feb 24, 2016 4:45 pm

Bogleheads,

How many Bogleheads use both a savings and checking account with a bank or credit union? Does anyone have only one account such as a checking account to keep things simple? Does a savings account provide another "layer" or "barrier" by keeping higher balances separate?

We never use our Debit account except to make an ATM withdrawal.

I am thinking out load here. Instead of having routine transfers, reconciliations, etc, would it make the most sense to simply combine?

The fraud aspect is the only dilemma that I can think of.

I would be interested in thoughts and opinions.

Best.
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

swl
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Re: Bank Accounts

Post by swl » Wed Feb 24, 2016 5:09 pm

I keep a savings account for expected <1 year purchases. Three months expenses in checking and the rest goes into investment accounts.

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mickeyd
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Re: Bank Accounts

Post by mickeyd » Wed Feb 24, 2016 5:14 pm

My checking is with USAA as well as a small savings account as a back up in case I need it. Since USAA pays lousy APY on savings, I do not stash much there. My main short-term savings is with Ally (1% APY). I transfer money back and forth between them with ease.
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fatcharlie
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Re: Bank Accounts

Post by fatcharlie » Wed Feb 24, 2016 5:17 pm

My credit union forces me to have a savings account with $5 in it which they pay almost no interest on.

My checking account with them pays a few percent if you pass a few simple qualifications (ACH transfers, debit card use etc) so I just use that one.

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Toons
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Re: Bank Accounts

Post by Toons » Wed Feb 24, 2016 5:23 pm

Online Checking
Online Savings :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

rav2fi
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Re: Bank Accounts

Post by rav2fi » Wed Feb 24, 2016 5:24 pm

Checking:
BofA - opened a long time back so keeping this one as I keep a very low balance in this anyways
Charles Schwab checking - mostly used for ATMs, and also when traveling international as this has no foreign transaction fee and no ATM fees worldwide. I transfer a small amount here from BofA when needed.

Savings:
Ally Savings (1%) - mostly the emergency fund resides here

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JDCarpenter
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Re: Bank Accounts

Post by JDCarpenter » Wed Feb 24, 2016 5:27 pm

I cashed out my passbook savings account in 1982 to help pay for first year of grad school; we haven't had one since.

But we keep a lot of money in BoA checking, keep a few months spending (and growing) in short-term investment grade at vanguard, and (at least in the past decade) could maintain current spending on either spouse's income.
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whatusername?
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Re: Bank Accounts

Post by whatusername? » Wed Feb 24, 2016 5:30 pm

3 checking accounts and 2 savings accounts. Only one checking account is not in "normal" use.

  • Big bank checking account is for monthly "operating expenses." I deposit an amount equal to my monthly budget and use that to pay normal bills. I don't even have a debit or ATM card for this account - everything gets charged to my credit card and the bill paid online out of this account. Not interest bearing.
  • Online checking account linked to my brokerage account and my primary savings account, all at Schwab. This makes it easy to transfer funds between accounts, invest them, hold them in cash, and/or pay large non-recurring expenses (house, car, furniture, etc.) from those accounts. Both savings and checking are interest bearing and hold the bulk of my cash.
  • Credit union savings account. I deposit money there each paycheck to cover annual expenses - property taxes, insurance premiums, annual memberships, etc. Basically anything that I want to "smooth" monthly across my budget even though it gets paid once a year. It gets treated like an escrow account.
  • The final checking account gets a very small direct deposit each paycheck. Usually on the order of about $10. Periodically I get to clean it out and blow the funds on something completely impractical. It's kinda fun. I could close the account, but it hasn't been any big deal to keep it open.
Each account has a different purpose, and since I can split direct deposits to match their purposes there really isn't anything complicated about having 5 accounts.

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Taco Knight
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Re: Bank Accounts

Post by Taco Knight » Wed Feb 24, 2016 5:38 pm

I have an Ally online Money Market account that lets me write checks, but I can only make six non-ATM withdrawals from it a month. I haven't run against this yet, but they say they only charge a fee for going over six if it becomes regular. That said, if there's a reason I have to write 7 checks/debits, I'm sure it will be worth the $10 or $25 fee.

This earns me .85% on my checking balance and I don't have to fret if I have so much in there that some should be in savings earning 1.05% and then micro-manage my transactions so as to have only the exact amount I need in my checking and everything else in my savings theoretically "earning" more.

It works as a checking for purposes of direct deposit and ACH and I haven't had any problems linking it to any other service.

Traveller
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Re: Bank Accounts

Post by Traveller » Wed Feb 24, 2016 5:40 pm

- Local credit union for discretionary expenses (groceries, fun, gas, etc)
- Online checking for repeating bills (utilities, phone, tithe, tv, insurances, etc)
- Multiple online savings accounts for specific needs (taxes as I am self employed and pay quarterly, vehicle replacement, emergency fund, etc)

Works great for us.

Broken Man 1999
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Re: Bank Accounts

Post by Broken Man 1999 » Wed Feb 24, 2016 5:50 pm

Wife and I both have savings and checking accounts at our credit union plus a joint savings and checking account at the credit union.

We decided early in our marriage that two people writing checks from the same account, one being anal about keeping an accurate check register, and one not so caring about such things, just didn't work. So we periodically split the bills somewhat fairly, and each paid their assigned bills.

We follow this method today; she pays for cell phones, groceries, and gas plus her personal stuff, and I pay everything else. Not as evenly apportioned as when we both worked, but so long as the bills get paid and I have $$$ for the stuff I simply must have, I'm OK with it.

Works for us, the joint accounts gather dust, seldom used for many years.

I wish Vanguard had a bank. :(


Broken Man 1999
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abuss368
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Re: Bank Accounts

Post by abuss368 » Wed Feb 24, 2016 6:13 pm

Broken Man 1999 wrote:I wish Vanguard had a bank. :(


What ever happened to that rumor? I recall some articles and survey's a year or two ago discussing a possible bank.
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barnaclebob
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Re: Bank Accounts

Post by barnaclebob » Wed Feb 24, 2016 6:18 pm

I keep enough in my checking account to cover the months expenses like mortgage and credit card payment plus a $500 buffer. Anything over that goes to vanguard. I also keep 10k in a money market at the same credit union as my immediate access emergency fund. Finally $500 in a savings account because that pays 6% interest.

NoGambleNoFuture
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Re: Bank Accounts

Post by NoGambleNoFuture » Wed Feb 24, 2016 6:23 pm

barnaclebob wrote:I keep enough in my checking account to cover the months expenses like mortgage and credit card payment plus a $500 buffer. Anything over that goes to vanguard. I also keep 10k in a money market at the same credit union as my immediate access emergency fund. Finally $500 in a savings account because that pays 6% interest.


Where do you have a savings account paying 6%?

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jeff1949
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Re: Bank Accounts

Post by jeff1949 » Wed Feb 24, 2016 6:27 pm

Taco Knight wrote:I have an Ally online Money Market account that lets me write checks, but I can only make six non-ATM withdrawals from it a month. I haven't run against this yet, but they say they only charge a fee for going over six if it becomes regular. That said, if there's a reason I have to write 7 checks/debits, I'm sure it will be worth the $10 or $25 fee.

This earns me .85% on my checking balance and I don't have to fret if I have so much in there that some should be in savings earning 1.05% and then micro-manage my transactions so as to have only the exact amount I need in my checking and everything else in my savings theoretically "earning" more.

It works as a checking for purposes of direct deposit and ACH and I haven't had any problems linking it to any other service.


This is why I have an Ally Money Market account AND an Ally Savings account too. That gives me 12 debits per month instead of just 6. The savings account pays a full 1.0% so a small bonus there. Moving money between the two accounts is instantaneous too.

TerryDMillerMBA
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Re: Bank Accounts

Post by TerryDMillerMBA » Wed Feb 24, 2016 6:42 pm

I always say to have as many checking and savings accounts as you need to keep things in their proper places. I personally have had as many as seven, and currently only have one.

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Taylor Larimore
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Re: Bank Accounts

Post by Taylor Larimore » Wed Feb 24, 2016 7:04 pm

Does anyone have only one account such as a checking account to keep things simple?
Abuss:

I have only one bank (checking) account.
Our lives are frittered away with detail. Simplify. Simplify. -- Henry David Thoreau

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Doom&Gloom
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Re: Bank Accounts

Post by Doom&Gloom » Wed Feb 24, 2016 7:12 pm

I don't think I have had a savings account since they quit using passbooks.

I have two checking accounts--at the same bank. One individual and one joint account with my wife.

Grogs
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Re: Bank Accounts

Post by Grogs » Wed Feb 24, 2016 7:25 pm

I have a checking account at a local credit union. The interest rate is approximately "bupkis", but they're easy to deal with, have no fees, and there's a branch at work about 60 seconds from my office. You can't get more convenient than that unless you work in a bank. I keep about one month's expenses there at the low point every month. I recently came to appreciate this buffer when my online mortgage payment got pulled twice in one day. The 2nd payment got credited to the following month, so it was nothing but a slight annoyance. I'm sure I could have gotten the fees waived if it had overdrawn me, but it was nice not to have to hassle with it.

For cash beyond the 1 month of expenses, I use an Ally savings account. I tend to transfer in even lots of $2-3k once that much excess builds up in my checking.

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TXJuice
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Re: Bank Accounts

Post by TXJuice » Wed Feb 24, 2016 8:06 pm

Checking - I keep $3-4k with Chase for rent/utilities/car insurance/credit card payments
Savings - Emergency fund and my future house downpayment are with Ally

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joe8d
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Re: Bank Accounts

Post by joe8d » Wed Feb 24, 2016 8:50 pm

Online Savings, B&M bank checking.
All the Best, | Joe

danaht
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Re: Bank Accounts

Post by danaht » Wed Feb 24, 2016 9:35 pm

NoGambleNoFuture wrote:
barnaclebob wrote:I keep enough in my checking account to cover the months expenses like mortgage and credit card payment plus a $500 buffer. Anything over that goes to vanguard. I also keep 10k in a money market at the same credit union as my immediate access emergency fund. Finally $500 in a savings account because that pays 6% interest.


Where do you have a savings account paying 6%?


Most likely this is a pre-paid fee based debit card account. Probably not Netspend - since a Netspend savings account currently pays 4.99%. I only have Netspend cards.

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House Blend
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Re: Bank Accounts

Post by House Blend » Wed Feb 24, 2016 9:51 pm

A credit union account functions as my financial hub. But I also keep an online savings account open, with small amounts of cash in it. Reasons are:

* I like their remote deposit app better than the one at my CU.

* It entitles me to an ATM-only card. (I believe that a savings account cannot be linked to a debit card.)

* In case I need to dump the CU, I have another bank ready in the on deck circle.

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Steelersfan
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Re: Bank Accounts

Post by Steelersfan » Wed Feb 24, 2016 9:54 pm

I shut down my savings account about a decade ago. Mostly I just have a checking account. Every few years, when CD rates are attractive, I buy a CD. When it matures I check the market (and my internal compass) and renew it or put it back into the market. I currently have one CD and haven't decided what to do when it matures in May.

I get some perks from having the CD because it inflates my balance at that bank. Somehow the local branch forgets to take those away when I'm out of CD country. If I stay out too long they might remember.

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Kenkat
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Re: Bank Accounts

Post by Kenkat » Thu Feb 25, 2016 8:53 am

I have a checking account at the bank that typically contains about 1 month of expenses, then an online savings account with about 3 months of expenses. Anything above that goes to Vanguard.

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midareff
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Re: Bank Accounts

Post by midareff » Thu Feb 25, 2016 9:19 am

Have a few...... have a checking and savings account at my former employer's credit union. Keep a couple of dollars there and use Ally to move a few cents in and out monthly to avoid the no activity issue. I use it in case I need a couple of thousand in cash for an extended out of country trip when I will transfer in the funds from Ally Bank (who does not have a local brick and mortar) and withdraw them. Have three accounts at Ally; a checking, a savings and a MM I use as an escrow account for property tax, car and condo insurance and IRS quarterly payments. Also a required $5 buck savings account at PenFed to be a member and have that 5% cash back gas card.

barnaclebob
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Re: Bank Accounts

Post by barnaclebob » Thu Feb 25, 2016 9:32 am

danaht wrote:
NoGambleNoFuture wrote:
barnaclebob wrote:I keep enough in my checking account to cover the months expenses like mortgage and credit card payment plus a $500 buffer. Anything over that goes to vanguard. I also keep 10k in a money market at the same credit union as my immediate access emergency fund. Finally $500 in a savings account because that pays 6% interest.


Where do you have a savings account paying 6%?


Most likely this is a pre-paid fee based debit card account. Probably not Netspend - since a Netspend savings account currently pays 4.99%. I only have Netspend cards.


Its 6% from a credit union but only for $500 of the balance, anything else is near zero. Hence why I only keep $500 in the savings account. The first $500 of the money market also gets 6% but the other $9500 gets a slightly better but still near zero rate than the savings account and there is a small bump in the interest rate at 10k.

Edit: Just checked my rates and its 4% on on the first $500 of checking and savings, near zero after that. MM is .15% for all of it.

afatcat
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Re: Bank Accounts

Post by afatcat » Thu Feb 25, 2016 9:50 am

Broken Man 1999 wrote:Wife and I both have savings and checking accounts at our credit union plus a joint savings and checking account at the credit union.

We decided early in our marriage that two people writing checks from the same account, one being anal about keeping an accurate check register, and one not so caring about such things, just didn't work. So we periodically split the bills somewhat fairly, and each paid their assigned bills.

We follow this method today; she pays for cell phones, groceries, and gas plus her personal stuff, and I pay everything else. Not as evenly apportioned as when we both worked, but so long as the bills get paid and I have $$$ for the stuff I simply must have, I'm OK with it.

Works for us, the joint accounts gather dust, seldom used for many years.

I wish Vanguard had a bank. :(


Broken Man 1999


VG has a cash management service:
https://personal.vanguard.com/us/whatweoffer/stocksbondscds/vanguardadvantageaccount

jnet2000
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Re: Bank Accounts

Post by jnet2000 » Thu Feb 25, 2016 10:23 am

We have 4 checking and 2 savings accounts.

OUR Checking is at a local S&L, which acts as our operating account. Our w2 direct deposits and s corp distributions are deposited here. Checks, CC payments, fixed monthly expenses are paid out of this checking account. It is also connected to our Vanguard accounts. No ATM Card. We also have 2 savings accounts at the S&L that pay 1%, an emergency fund and a sinking funds account and some CDs. All these accounts are connected to Quicken and tied to our monthly and yearly budgets.

MY checking is at a regional community bank, where I have some of our business accounts also, and we have our safety deposit box here too. I use my checking for my personal spending money and it is not connected to quicken so its my fun money. I don't keep a lot of money here and do use a debit card.

HER checking is at a local credit union where she keeps her spending money which is also not connected to quicken. My wife also uses her debit card on this account.

We also have a Schwab checking account we have kept, which was my primary checking for many years before getting married, for travel for its free ATM rebates and no foreign transaction fees. It lays dormant until we travel.

This works for us. I don't think having a single checking account would work for us.
Last edited by jnet2000 on Sat Feb 27, 2016 6:49 pm, edited 3 times in total.
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Dandy
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Re: Bank Accounts

Post by Dandy » Thu Feb 25, 2016 10:52 am

I have a main checking account at a large local brick bank that I run everything through e.g. all deposits, I transfer to and from their HELOC product, etc. In addition I have a Savings account and money market account at an online bank. I draw down $x a month from on line savings account to supplement my retirement income. I use the on line Money Market account as a place to park money to fund larger discretionary expenses e.g. home improvement- mental accounting I'm not spending my retirement money. :oops:

Currently, pensions, SS, tax refunds, etc go to the brick bank which pays no interest. I really don't trust brick banks since they have a knack to introduce fees, change the minimum balance amounts etc. I am thinking of having all deposits go to the online savings account and just feeding the brick checking account twice a month with the money needed to supplement retirement. That way I earn some interest on the savings until they are needed and can move my main checking account easily if the bank changes its rules/fees. Also, if I decide to move I won't have the hassle of re directing payments to a new bank. Banks seem to leave their savings account alone and pay more than most interest checking since they aren't dealing with the transactions/issues/expenses associated with checking accounts. (note the Savings account limits transfers to 6 per month).

Another option that is slowly emerging is to use VG's Advantage account which is currently paying 0.40%. Prime has steadily moved from paying 1 basis points to 40 over the last few months. It could become a viable option if this continues. VG Advantage Account is not as good as Fidelity or Schwab versions- but I have it already and may finally get to use it for its intended purpose.

vtMaps
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Re: Bank Accounts

Post by vtMaps » Thu Feb 25, 2016 11:26 am

House Blend wrote:It entitles me to an ATM-only card. (I believe that a savings account cannot be linked to a debit card.)

I am not sure about that...
http://www.schwab.com/public/schwab/ban ... s_account/
Federal law strictly limits the number of withdrawals from savings accounts to 6 per month. Types of withdrawals that count toward the 6 per month limit are: Automatic payments and preauthorized transfers, debit card purchases, overdraft protection transfers, and transfers outside of the account (whether within Schwab or outside of Schwab). The law requires that we close the savings account if the rule is repeatedly violated.

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BL
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Re: Bank Accounts

Post by BL » Thu Feb 25, 2016 11:45 am

Dandy says:
Another option that is slowly emerging is to use VG's Advantage account which is currently paying 0.40%. Prime has steadily moved from paying 1 basis points to 40 over the last few months. It could become a viable option if this continues. VG Advantage Account is not as good as Fidelity or Schwab versions- but I have it already and may finally get to use it for its intended purpose.

We are not eager to switch to brokerage from the current V non-brokerage system. It sounds like this needs to be brokerage, so would that mean we would have to switch over to the other system? Otherwise, it sounds worth considering in lieu of our low-paying local banks for occasional needs/wants. Simple is good.

itstoomuch
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Re: Bank Accounts

Post by itstoomuch » Thu Feb 25, 2016 12:16 pm

1 joint. 1 his. 1 hers.
Joint trading account where we can do wire transfers.
Thinking of opening an account in WA where son lives.
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rec7
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Re: Bank Accounts

Post by rec7 » Thu Feb 25, 2016 12:30 pm

Taylor Larimore wrote:
Does anyone have only one account such as a checking account to keep things simple?
Abuss:

I have only one bank (checking) account.
Our lives are frittered away with detail. Simplify. Simplify. -- Henry David Thoreau

Best wishes.
Taylor


I admire you hopefully one day I will get there. My goal is one credit union and Vanguard. The older I get the more I like simple. I have been chasing CD rates so I have a train load of accounts. I just closed four but have several more. Some folks think you are rich with so many accounts but most have less that $10 in them.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

Dandy
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Re: Bank Accounts

Post by Dandy » Thu Feb 25, 2016 12:44 pm

We are not eager to switch to brokerage from the current V non-brokerage system. It sounds like this needs to be brokerage, so would that mean we would have to switch over to the other system? Otherwise, it sounds worth considering in lieu of our low-paying local banks for occasional needs/wants. Simple is good


I set up the Advantage Account many years ago and haven't used check writing, atm card or bill pay ever. I used to hold a few individual stocks and bonds in the account but sold them off a decade ago. So all I have is VG mutual funds in the account. I have divs and cap gains sent to Prime MMkt. I move money from Prime to my brick checking, etc. No Advantage account charges for me. So it seems to act like I just own VG mutual funds directly. I don't know if these accounts are going to be "converted" to some other brokerage type account or not.

I'm surprised VG doesn't improve/promote this account more it is hard to find information unless your key in advantage account in the search box. It seems like a great idea to attract and retain assets as long as Prime pays something and the other features are up to snuff/the competition (which they aren't). e.g. RMDs might go to this account instead of people taking them directly to their bank.

stoptothink
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Re: Bank Accounts

Post by stoptothink » Thu Feb 25, 2016 12:55 pm

We have both a savings and checking account. Having the savings account is almost entirely psychological, it is where we place EF funds that we don't touch (unless, of course, there is an emergency). Even though the interest is under 1%, we add $250/month into it after paying bills/investing; anything over that my wife allows me to put towards further pre-paying the mortgage.

joebh
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Re: Bank Accounts

Post by joebh » Thu Feb 25, 2016 1:25 pm

abuss368 wrote:How many Bogleheads use both a savings and checking account with a bank or credit union? Does anyone have only one account such as a checking account to keep things simple? Does a savings account provide another "layer" or "barrier" by keeping higher balances separate?


I use three accounts.

My checking account is connected to my debit card. It gets minimal interest, and holds only enough to pay bills for about a month.
My money market account is where paychecks are directly deposited. It is not connected to any debit card, gets more interest, and holds a few months expenses. When necessary, I transfer funds from here to my checking account. And when it gets too large, funds get transferred elsewhere.
My Ally account is where my emergency funds are kept. It holds over 1 year of expenses, and currently gets 1% interest.
Last edited by joebh on Thu Feb 25, 2016 1:26 pm, edited 1 time in total.

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Taco Knight
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Re: Bank Accounts

Post by Taco Knight » Thu Feb 25, 2016 1:25 pm

jeff1949 wrote:
Taco Knight wrote:I have an Ally online Money Market account that lets me write checks, but I can only make six non-ATM withdrawals from it a month. I haven't run against this yet, but they say they only charge a fee for going over six if it becomes regular. That said, if there's a reason I have to write 7 checks/debits, I'm sure it will be worth the $10 or $25 fee.

This earns me .85% on my checking balance and I don't have to fret if I have so much in there that some should be in savings earning 1.05% and then micro-manage my transactions so as to have only the exact amount I need in my checking and everything else in my savings theoretically "earning" more.

It works as a checking for purposes of direct deposit and ACH and I haven't had any problems linking it to any other service.


This is why I have an Ally Money Market account AND an Ally Savings account too. That gives me 12 debits per month instead of just 6. The savings account pays a full 1.0% so a small bonus there. Moving money between the two accounts is instantaneous too.


Interesting. When I converted to online I had no dog in the race and opened the MMA at Ally and the Savings at Barclay's (for the extra .05%), in fact, it seemed somewhat prudent to try out two otherwise comparable online banking platforms since I was new entirely.

So Ally-internal transfer also don't count against the 6 limit? I could open an Ally savings, keep it nominally balanced, just use it as a backdoor for months I may have more debits? (Since my first comment I'm realizing that it's wedding season coming and I have no control or idea when people will cash gift checks)

Broken Man 1999
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Re: Bank Accounts

Post by Broken Man 1999 » Thu Feb 25, 2016 1:30 pm

afatcat wrote:
Broken Man 1999 wrote:Wife and I both have savings and checking accounts at our credit union plus a joint savings and checking account at the credit union.

We decided early in our marriage that two people writing checks from the same account, one being anal about keeping an accurate check register, and one not so caring about such things, just didn't work. So we periodically split the bills somewhat fairly, and each paid their assigned bills.

We follow this method today; she pays for cell phones, groceries, and gas plus her personal stuff, and I pay everything else. Not as evenly apportioned as when we both worked, but so long as the bills get paid and I have $$$ for the stuff I simply must have, I'm OK with it.

Works for us, the joint accounts gather dust, seldom used for many years.

I wish Vanguard had a bank. :(


Broken Man 1999


VG has a cash management service:
https://personal.vanguard.com/us/whatweoffer/stocksbondscds/vanguardadvantageaccount


I've considered it, and I use the bank Vanguard uses (PNC) as my safe deposit box provider.

Using Vanguard's cash management bill pay option would make things a tiny bit easier, though I receive the same benefits free also at my CU.

Broken Man 1999
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BL
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Re: Bank Accounts

Post by BL » Thu Feb 25, 2016 2:52 pm

Dandy wrote:
We are not eager to switch to brokerage from the current V non-brokerage system. It sounds like this needs to be brokerage, so would that mean we would have to switch over to the other system? Otherwise, it sounds worth considering in lieu of our low-paying local banks for occasional needs/wants. Simple is good


I set up the Advantage Account many years ago and haven't used check writing, atm card or bill pay ever. I used to hold a few individual stocks and bonds in the account but sold them off a decade ago. So all I have is VG mutual funds in the account. I have divs and cap gains sent to Prime MMkt. I move money from Prime to my brick checking, etc. No Advantage account charges for me. So it seems to act like I just own VG mutual funds directly. I don't know if these accounts are going to be "converted" to some other brokerage type account or not.

I'm surprised VG doesn't improve/promote this account more it is hard to find information unless your key in advantage account in the search box. It seems like a great idea to attract and retain assets as long as Prime pays something and the other features are up to snuff/the competition (which they aren't). e.g. RMDs might go to this account instead of people taking them directly to their bank.

Thanks. Will keep this in mind and watch rates as well for future consideration. I believe I can set up check-writing on at least a bond fund in our regular joint account but haven't seen a need for it yet.

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Elsebet
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Re: Bank Accounts

Post by Elsebet » Thu Feb 25, 2016 3:25 pm

We have a joint checking/savings account at our credit union. We both have our own separate checking/savings accounts at an out-of-state credit union (from our former residence). My old CU account has a CD ladder in it (our old emergency fund) so I'm letting it roll over into checking each year and once that's done in 2018 I'm going to put the proceeds into my Fidelity cash account and get rid of that CU account.

I like things as simple as possible. I already have many accounts (checking/savings, brokerage, work 401k, credit cards, etc) to keep an eye on. :)

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House Blend
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Re: Bank Accounts

Post by House Blend » Thu Feb 25, 2016 3:33 pm

vtMaps wrote:
House Blend wrote:It entitles me to an ATM-only card. (I believe that a savings account cannot be linked to a debit card.)

I am not sure about that...
http://www.schwab.com/public/schwab/ban ... s_account/
Federal law strictly limits the number of withdrawals from savings accounts to 6 per month. Types of withdrawals that count toward the 6 per month limit are: Automatic payments and preauthorized transfers, debit card purchases, overdraft protection transfers, and transfers outside of the account (whether within Schwab or outside of Schwab). The law requires that we close the savings account if the rule is repeatedly violated.

Thanks for that clarification. So perhaps my online bank actually deserves some kudos (can one hand out a single kudo?) for providing a feature that I prefer.

herpfinance
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Re: Bank Accounts

Post by herpfinance » Thu Feb 25, 2016 4:53 pm

I have 3 months of expenses in a checking account.

A notice account holds major short term expenses (car purchase) and the cash portion of my portfolio.
"The intelligent investor is a realist who sells to optimists and buys from pessimists" - Benjamin Graham

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tinscale
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Re: Bank Accounts

Post by tinscale » Thu Feb 25, 2016 5:20 pm

I have checking and savings, with the savings acct being actual savings and what bogleheads would probably call emergency funds. For now I'm comfortable with it as cash earning 1% as opposed to risking it in the market in equity or bond funds.

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Premier
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Re: Bank Accounts

Post by Premier » Thu Feb 25, 2016 9:54 pm

1. Checking account: For bills, food, gas and rent.
- It's just easier to do automatic bill payments this way.

2. Online Savings account (1.05%) for my emergency fund.
- I feel like your emergency fund should be low risk but also have a chance to grow. Some use their Roth and Taxable account as an e-fund but that's just too risky for me.
Own stocks, the course to stay; Hold bonds, for they will pay; Keep cash reserves for a rainy day.

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BolderBoy
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Re: Bank Accounts

Post by BolderBoy » Thu Feb 25, 2016 11:49 pm

Local, brick & mortar credit union. (my primary checking account is elsewhere).

Keep most of the $$$ that I keep there (few hundred) in the savings component and only few pennies in the checking. eBay or Paypal required a checking account to be a seller / buyer, so I gave them the mostly empty CU checking account number.

When I want to make a purchase that involves an ACH transfer, I move the $$$ from savings to checking thereby limiting how much a bad guy could get.
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oldcomputerguy
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Re: Bank Accounts

Post by oldcomputerguy » Fri Feb 26, 2016 7:35 am

abuss368 wrote:How many Bogleheads use both a savings and checking account with a bank or credit union?


My wife and I use both a savings and a checking account at our local bank. Savings is for accumulation of annual-type expenses (auto insurance, property taxes, annual subscription to local symphony, etc), and checking for weekly expenses, monthly bills and ATM withdrawals.

My wife also has a separate savings account at a different bank. (We had taken a look at our finances some years ago and realized that, since everything was either in my name or jointly owned, she basically had no credit record just in her name, and that if I died, she might have trouble carrying on. So we set up her own savings account plus a credit card in her name only, so that she'd have a credit score independent of mine/ours in case disaster struck.) We're using that account to save up for a "bucket list" vacation.
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rec7
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Re: Bank Accounts

Post by rec7 » Fri Feb 26, 2016 11:08 am

I had a lawyer tell me that if you got sued a person with a lot of accounts would look like a bigger target. I don't know if this is true but is makes some cents. What do you think?
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack

tdogz
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Re: Bank Accounts

Post by tdogz » Fri Feb 26, 2016 12:14 pm

rec7 wrote:I had a lawyer tell me that if you got sued a person with a lot of accounts would look like a bigger target. I don't know if this is true but is makes some cents. What do you think?

I would wonder how they would know how many accounts I had when they were deciding who to sue. And if they do already know about your accounts, that would probably be because they have already subpoenaed your financial records. If they did that, then they know exactly what you have, regardless of if it is in one account or ten. In my experience, a lot of lawyers just like to hear themselves talk. I would but this lawyer into that group (and probably find a different lawyer to use if I was sued).

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timboktoo
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Re: Bank Accounts

Post by timboktoo » Fri Feb 26, 2016 12:24 pm

I have an online savings account for my emergency fund and any extra money that has no allocation and an online checking account for receiving my paycheck and paying my bills from. They're both at the same place, so I can move money quickly between these accounts.

- Tim

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