Local banks rarely have good rates. I think many people use a physical branch bank plus an online bank.
I use free student checking at US Bank. No fees, branches and ATMs nationwide. I use it to deposit cash, direct deposit paychecks, and autopaying bills that don't take credit card.
I also use Ally Bank savings. No fees, online only, large ATM network (and ATM fee reimbursement). They have consistently high interest rates. I use it to park my excess cash, deposit checks via phone (or mail) for free, and autopay my credit cards.
I use American Express and Chase for credit cards because of the rewards. I pay for everything I can using these cards. I autopay the full balance each month from my savings account.
Vanguard for retirement/investment funds.
This has worked well for me for about a decade.
What kind of bank account should I open?
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- Joined: Tue May 07, 2013 4:56 pm
Re: What kind of bank account should I open?
Transferwise just created a new borderless account for US customers. Interesting.
https://venturebeat.com/2019/06/26/tran ... urrencies/
https://venturebeat.com/2019/06/26/tran ... urrencies/
Re: What kind of bank account should I open?
There's is a Depositors credit guarantee and insurance corporation or equivalent that comes under the reserve bank of that country. US was the first country to have that in 1933 I think but now most countries have one. While opening an account I have to know I'll not put in more than the insured limit per account, which hasn't been adjusted for inflation since before I was born. This is the amount I'll get back if/when the bank fails.fiby41 wrote: ↑Thu Jan 07, 2016 12:48 pmI now have accounts in four banks. First account was opened in the bank closed to home 7 years ago.
Account in a certain bank was required for receiving the scholarship amount, another one because fees for second year will only be accepted from this particular bank and last because this one has a branch with the facility to open a PFF account closest to home.
Based on the risk of failure banks are divided into
If I exceed the insured amount including balance, deposits and interest, it makes risk management sense to open a new account in another bank.
Another thing to look out for is the minimum balance required. It varies according to if you are living in a rural area, town or metropolitan city. If I don't maintain the minimum balance, a non maintainable fee is charged by the government owned banks.
On top of that the largest bank in the country has begun allowing only 2 deposits/withdrawal a months, exceeding which there is a flat fee, starting this month.