Hi Matt,
Thanks for this. I already have one at the same bank as my checking but it has very low interest (0.01%). I am considering opening another for long term savings with Ally who has a much a higher interest rate. Ally has no maintenance fee and the reviews seem positive, but I’m one of those “if it seems too good to be true it probably is” kind of people. I was wondering if you have any experience/opinion on this bank? Am I better off just sticking to a low interest bank even though I do not plan on withdrawing frequently?
We just let our monthly budgeted amounts for such items build up in our checking account. But we do use our separate near-term “When” savings account to save for our property taxes, life, home, and vehicle insurance premiums, and vacations.
________________
Steven
You can use a money market account with check writing privileges as your savings account and save the “transfer back to checking” step. The typical check writing limits (# checks and minimum amount) are probably quite workable for this purpose. Some may need electronic billpay from their checking account though, so depends on your situation.
Hi Matt,
Thanks for this. I already have one at the same bank as my checking but it has very low interest (0.01%). I am considering opening another for long term savings with Ally who has a much a higher interest rate. Ally has no maintenance fee and the reviews seem positive, but I’m one of those “if it seems too good to be true it probably is” kind of people. I was wondering if you have any experience/opinion on this bank? Am I better off just sticking to a low interest bank even though I do not plan on withdrawing frequently?
Thank you in advance for your time and help!
We just let our monthly budgeted amounts for such items build up in our checking account. But we do use our separate near-term “When” savings account to save for our property taxes, life, home, and vehicle insurance premiums, and vacations.
________________
Steven
Great point, Jesse. I’m all about saving a step whenever possible. Thanks.
You can use a money market account with check writing privileges as your savings account and save the “transfer back to checking” step. The typical check writing limits (# checks and minimum amount) are probably quite workable for this purpose. Some may need electronic billpay from their checking account though, so depends on your situation.