Where should I bank for an account only meant for expenses?

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JacobTeach
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Where should I bank for an account only meant for expenses?

Post by JacobTeach » Fri Jul 26, 2019 12:01 am

I want to open an account at NOT Schwab, Vanguard, or Fidelity, as I already have accounts with them and want to keep the statements separate for my expenses.

My intention for this account is to deposit a monthly fixed amount and use that cash to pay for all my expenses that are not investment related. I don’t ever plan to let the balance get too high.

The things I think are important are no minimums of any kind or fees, a high interest rate, easy automatic bill pay, and ease of withdrawal at ATMs (free withdrawals in foreign countries a bonus!).

Which banks should I be looking at?

AerialP
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Location: Central Kentucky

Re: Where should I bank for an account only meant for expenses?

Post by AerialP » Fri Jul 26, 2019 12:39 am

Pursue the offerings at your local credit unions. High interest rate with no minimums will be hard to come by, but I reckon you'll like working with a credit union for lack of fees, easy automatic bill pay, and large ATM networks including some exposure to overseas access.

MikeG62
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Re: Where should I bank for an account only meant for expenses?

Post by MikeG62 » Fri Jul 26, 2019 5:34 am

Ally bank checking account?
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indexfundfan
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Re: Where should I bank for an account only meant for expenses?

Post by indexfundfan » Fri Jul 26, 2019 5:43 am

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terran
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Re: Where should I bank for an account only meant for expenses?

Post by terran » Fri Jul 26, 2019 7:11 am

I know you said not Schwab, but why? Are you already using their investor checking for something else? It's the best option I'm aware of for reimbursement of ATM fees and without foreign transaction fees.

remomnyc
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Re: Where should I bank for an account only meant for expenses?

Post by remomnyc » Fri Jul 26, 2019 7:17 am

What brick and mortar banks are nearby? I would choose one of them. I use Citi for my primary checking. No fees with a minimum average balance of $1,500. Easy bill pay, but ATM fees if you use non-Citi ATMs and no interest.

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indexfundfan
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Re: Where should I bank for an account only meant for expenses?

Post by indexfundfan » Fri Jul 26, 2019 7:18 am

terran wrote:
Fri Jul 26, 2019 7:11 am
I know you said not Schwab, but why? Are you already using their investor checking for something else? It's the best option I'm aware of for reimbursement of ATM fees and without foreign transaction fees.
The interest rate at Schwab's checking account is low.

I know the yield is higher if you put the money in Schwab's MMF but manually buying and selling MMFs in a day-to-day transactional account would probably be too tedious.
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jayk238
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Re: Where should I bank for an account only meant for expenses?

Post by jayk238 » Fri Jul 26, 2019 7:34 am

JacobTeach wrote:
Fri Jul 26, 2019 12:01 am
I want to open an account at NOT Schwab, Vanguard, or Fidelity, as I already have accounts with them and want to keep the statements separate for my expenses.

My intention for this account is to deposit a monthly fixed amount and use that cash to pay for all my expenses that are not investment related. I don’t ever plan to let the balance get too high.

The things I think are important are no minimums of any kind or fees, a high interest rate, easy automatic bill pay, and ease of withdrawal at ATMs (free withdrawals in foreign countries a bonus!).

Which banks should I be looking at?
No checking account will offer high interest rate. The best ive seen is ally and its not worth the hassle of online only for checking even w their debit card.

Just suck it up and have as little in the account as possible. For whatwver interest rate you are searching the return on it no mattwr how high- even 1% will be so low as to make a meaningless contribution.

If your needs are that much that you need a 1% return then you have bigger problems or better ways to address this including allocation.

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Kenkat
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Re: Where should I bank for an account only meant for expenses?

Post by Kenkat » Fri Jul 26, 2019 7:41 am

You might see if your employer offers any banking relationships with local brick and mortar banks. I have workplace banking through PNC that offers special features if you have your pay direct deposited to the checking account. I use it to pay expenses and sweep and additional money into my Vanguard MM Prime account.

Nowizard
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Re: Where should I bank for an account only meant for expenses?

Post by Nowizard » Fri Jul 26, 2019 7:43 am

A local credit union is paying 4% on deposits up to $25,000 with requirements of a monthly, automatic deposit and, I believe, six uses of either a debit card or automatic withdrawal.

Tim

SimonJester
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Re: Where should I bank for an account only meant for expenses?

Post by SimonJester » Fri Jul 26, 2019 8:00 am

Get a cash back credit card and make ~2% on all your expenses.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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