3 Bank Accounts Everyone MUST HAVE
Many people manage all their money out of one account, but they miss out on returns on their savings and rewards for their spending. Some others split their finances over a few accounts, but never earn enough rewards for anything and end up paying huge fees.
Based on what you’re trying to achieve with your money, it is important to find the right balance for you. Listed below are 3 must-have bank accounts that everyone needs to manage long-term goals and daily expenses:
A No-Fee Checking Account for Day-To-Day Banking
If you’re being charged a fee to access your own money, ditch the bank and switch to another one. When it comes to financial institutions, consumers have more choices than ever. Choosing one that saves you around $10 each month will help you save thousands over your lifetime.
Your checking account will help you take care of your daily financial needs. This is where you pay any bills, deposit your paycheck, make purchases, and transfer money to savings or debt repayment.
High-Interest Savings Account for Your Emergency Fund
It doesn’t matter if you have ample insurance, a super-secure job, or you’re in perfect health – you need to have an emergency fund.
Many financial experts recommend that you save between 3 to 6 months of essential living expenses. However, if you want to clear your debt, buy a house, or save for retirement, you can even start by building a small emergency fund.
Instead of letting thousands of dollars sit in a savings account giving you piddly interest, put your money in higher-return investment vehicles. It is advised to set up your emergency fund at a different bank than the one you currently use for your daily banking. Online banks are an ideal option since they offer higher rates than brick and mortar banks.
An Investment Account for Your Retirement
Apart from managing your daily expenses and income, you also need to be prepared for the future. While it’s a great option to save for retirement, it’s considered even better to invest for your golden years. The money you set aside for retirement should give you the highest possible returns. A low-fee mutual fund is a great place to start if you’re new to investing.
But a low-cost brokerage account is the best option for you if you’re comfortable with managing your investments yourself.
