Finance

Have You Opened These Bank Accounts?

Using different bank accounts for different things makes a lot of sense. But there’s a fine line between having too many and not using any of them at all. The main advantage of using a bunch of different accounts is so you can make your money work harder for you. If you use one account for all purposes, then you’re missing out on potential interest and rewards. With that in mind, we’ve made a list of the top 3 types of bank accounts that you should consider opening. 

A No-fee Checking Account for Daily Banking

A checking account is a great option to keep some money for day-to-day expenses. But avoid opening a checking account in a bank that charges you a fee to access your money. If your bank is doing so, it’s time you look for other options. Even if your bank is charging you a relatively small sum of, say, $10 per month, you will end up shelling out thousands of dollars over your lifetime. 

A High-interest Savings Account to Grow Your Emergency Fund

Even if your job is extremely secure and you have enough insurance, it’s important to have an emergency fund. Unexpected expenses can crop at any time, and when they do, they’re often really expensive. So, it’s best to open a savings account with a bank that offers a high APY to grow your emergency fund over time. Most financial experts believe that you should save enough money to pay for at least 3-6 months’ worth of essential expenses saved up in your emergency fund. 

A No-fee/low-fee Rewards or Cashback Credit Card

While this is not a bank account in the traditional sense, it is still something that everybody needs. If you are responsible with your money, a credit card can help you reap the rewards while adding to your security and helping you improve your credit score over time. If you do not have a credit card as yet or are looking for a new option, it’s best to consider either a rewards or cashback card that’s offered for a low (if not nil) fee.