Sources: [1]. Perhaps, however, I will end up doing both, both then again, would I be wasting time and money by putting even $300 (their minimum) in that savings account instead of Ally where my money would grow more quickly? Don’t worry, we won’t tell anyone your username. To be honest, I don't see much point. ._3Im6OD67aKo33nql4FpSp_{border:1px solid var(--newCommunityTheme-widgetColors-sidebarWidgetBorderColor);border-radius:5px 5px 4px 4px;overflow:visible;word-wrap:break-word;background-color:var(--newCommunityTheme-body);padding:12px}.lnK0-OzG7nLFydTWuXGcY{font-size:10px;font-weight:700;letter-spacing:.5px;line-height:12px;text-transform:uppercase;padding-bottom:4px;color:var(--newCommunityTheme-navIcon)} Yes to all but at the same time, I'd I have an emergency, it goes on a credit card and gets paid out of savings at the end of the month. Ally bank, from what I hear is a much better bank in terms of growth and is often times recommended to me by friends from PersonalFinance. I seriously love them and don't know why more people don't ditch Chase. Opening a savings account allows you to store cash funds safely and securely at a bank or credit union. Life Happens. They also have live humans 24/7 on the phone. As long as chase is 100% free, at $2000, it's irrelevant. One with Chase and 1 with ally? According to research, it takes up to 66 days for an action to become a habit, so the sooner you begin stashing away your pennies, the … It's easy to transfer money between the accounts. First off, congratulations on the new job. If you want zero risk, but it in a CD. .FIYolDqalszTnjjNfThfT{max-width:256px;white-space:normal;text-align:center} 62% of Americans Have Under $1,000 in Savings, Survey Finds [2]. Join our community, read the PF Wiki, and get on top of your finances! So... go for it. Initially, I was going to set up a savings account with Chase bank (as they are my bank for my checking account). Reddit This husband threatened to take half of his wife’s savings because she was keeping it a ‘secret’ Raise your hand if you’re a woman and at some point in your early adult life, an elder woman in your family told you to always have money on hand that your husband doesn’t know about. I'm getting pennies in interest each month. Press J to jump to the feed. This is the same thing that happens when a creditor “pre-approves” you for credit and it has no effect on your credit score. However, when I totaled my car, I was able to get my needed emergency funds in my checking account in 30 seconds on a Saturday through their app. Then I hit a rough patch with a series of unexpected problems that needed fixing (major car and home repairs) and having that money on hand was a life saver. Personal choice though. Chase isn't worth it for savings. ._2a172ppKObqWfRHr8eWBKV{-ms-flex-negative:0;flex-shrink:0;margin-right:8px}._39-woRduNuowN7G4JTW4I8{border-top:1px solid var(--newCommunityTheme-widgetColors-lineColor);margin-top:12px;padding-top:12px}._3AOoBdXa2QKVKqIEmG7Vkb{font-size:12px;font-weight:400;line-height:16px;-ms-flex-align:center;align-items:center;background-color:var(--newCommunityTheme-body);border-radius:4px;display:-ms-flexbox;display:flex;-ms-flex-direction:row;flex-direction:row;margin-top:12px}.vzEDg-tM8ZDpEfJnbaJuU{color:var(--newCommunityTheme-button);fill:var(--newCommunityTheme-button);height:14px;width:14px}.r51dfG6q3N-4exmkjHQg_{font-size:10px;font-weight:700;letter-spacing:.5px;line-height:12px;text-transform:uppercase;display:-ms-flexbox;display:flex;-ms-flex-pack:justify;justify-content:space-between}._2ygXHcy_x6RG74BMk0UKkN{margin-left:8px}._2BnLYNBALzjH6p_ollJ-RF{display:-ms-flexbox;display:flex;margin-left:auto}._1-25VxiIsZFVU88qFh-T8p{padding:0}._3BmRwhm18nr4GmDhkoSgtb{color:var(--newCommunityTheme-bodyText);-ms-flex:0 0 auto;flex:0 0 auto;line-height:16px} I have wells Fargo for checking and Ally for savings and I've never had a problem. If you already have a checking account, opening a savings account at the same bank will allow you to set up free automatic transfers from checking to savings. Savings account usually offer a negligible interest rate, but the real benefit is having a place for your money that is clearly marked as money to save! Related: Find Out the Right Way to Fund a Savings Account. .Rd5g7JmL4Fdk-aZi1-U_V{transition:all .1s linear 0s}._2TMXtA984ePtHXMkOpHNQm{font-size:16px;font-weight:500;line-height:20px;margin-bottom:4px}.CneW1mCG4WJXxJbZl5tzH{border-top:1px solid var(--newRedditTheme-line);margin-top:16px;padding-top:16px}._11ARF4IQO4h3HeKPpPg0xb{transition:all .1s linear 0s;display:none;fill:var(--newCommunityTheme-button);height:16px;width:16px;vertical-align:middle;margin-bottom:2px;margin-left:4px;cursor:pointer}._1I3N-uBrbZH-ywcmCnwv_B:hover ._11ARF4IQO4h3HeKPpPg0xb{display:inline-block}._2IvhQwkgv_7K0Q3R0695Cs{border-radius:4px;border:1px solid var(--newCommunityTheme-line)}._2IvhQwkgv_7K0Q3R0695Cs:focus{outline:none}._1I3N-uBrbZH-ywcmCnwv_B{transition:all .1s linear 0s;border-radius:4px;border:1px solid var(--newCommunityTheme-line)}._1I3N-uBrbZH-ywcmCnwv_B:focus{outline:none}._1I3N-uBrbZH-ywcmCnwv_B.IeceazVNz_gGZfKXub0ak,._1I3N-uBrbZH-ywcmCnwv_B:hover{border:1px solid var(--newCommunityTheme-button)}._35hmSCjPO8OEezK36eUXpk._35hmSCjPO8OEezK36eUXpk._35hmSCjPO8OEezK36eUXpk{margin-top:25px;left:-9px}._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP,._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP:focus-within,._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP._3aEIeAgUy9VfJyRPljMNJP:hover{transition:all .1s linear 0s;border:none;padding:8px 8px 0}._25yWxLGH4C6j26OKFx8kD5{display:inline}._2YsVWIEj0doZMxreeY6iDG{font-size:12px;font-weight:400;line-height:16px;color:var(--newCommunityTheme-metaText);display:-ms-flexbox;display:flex;padding:4px 6px}._1hFCAcL4_gkyWN0KM96zgg{color:var(--newCommunityTheme-button);margin-right:8px;margin-left:auto;color:var(--newCommunityTheme-errorText)}._1hFCAcL4_gkyWN0KM96zgg,._1dF0IdghIrnqkJiUxfswxd{font-size:12px;font-weight:700;line-height:16px;cursor:pointer;-ms-flex-item-align:end;align-self:flex-end;-webkit-user-select:none;-ms-user-select:none;user-select:none}._1dF0IdghIrnqkJiUxfswxd{color:var(--newCommunityTheme-button)}._3VGrhUu842I3acqBMCoSAq{font-weight:700;color:#ff4500;text-transform:uppercase;margin-right:4px}._3VGrhUu842I3acqBMCoSAq,.edyFgPHILhf5OLH2vk-tk{font-size:12px;line-height:16px}.edyFgPHILhf5OLH2vk-tk{font-weight:400;-ms-flex-preferred-size:100%;flex-basis:100%;margin-bottom:4px;color:var(--newCommunityTheme-metaText)}._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX{margin-top:6px}._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX._19lMIGqzfTPVY3ssqTiZSX._3MAHaXXXXi9Xrmc_oMPTdP{margin-top:4px} But what are the benefits of opening a "savings account" as opposed to simply a separate "checking" account? I'll second this. Actually, I'd even not using Chase as primary checking. 4 years ago. .c_dVyWK3BXRxSN3ULLJ_t{border-radius:4px 4px 0 0;height:34px;left:0;position:absolute;right:0;top:0}._1OQL3FCA9BfgI57ghHHgV3{-ms-flex-align:center;align-items:center;display:-ms-flexbox;display:flex;-ms-flex-pack:start;justify-content:flex-start;margin-top:32px}._1OQL3FCA9BfgI57ghHHgV3 ._33jgwegeMTJ-FJaaHMeOjV{border-radius:9001px;height:32px;width:32px}._1OQL3FCA9BfgI57ghHHgV3 ._1wQQNkVR4qNpQCzA19X4B6{height:16px;margin-left:8px;width:200px}._39IvqNe6cqNVXcMFxFWFxx{display:-ms-flexbox;display:flex;margin:12px 0}._39IvqNe6cqNVXcMFxFWFxx ._29TSdL_ZMpyzfQ_bfdcBSc{-ms-flex:1;flex:1}._39IvqNe6cqNVXcMFxFWFxx .JEV9fXVlt_7DgH-zLepBH{height:18px;width:50px}._39IvqNe6cqNVXcMFxFWFxx ._3YCOmnWpGeRBW_Psd5WMPR{height:12px;margin-top:4px;width:60px}._2iO5zt81CSiYhWRF9WylyN{height:18px;margin-bottom:4px}._2iO5zt81CSiYhWRF9WylyN._2E9u5XvlGwlpnzki78vasG{width:230px}._2iO5zt81CSiYhWRF9WylyN.fDElwzn43eJToKzSCkejE{width:100%}._2iO5zt81CSiYhWRF9WylyN._2kNB7LAYYqYdyS85f8pqfi{width:250px}._2iO5zt81CSiYhWRF9WylyN._1XmngqAPKZO_1lDBwcQrR7{width:120px}._3XbVvl-zJDbcDeEdSgxV4_{border-radius:4px;height:32px;margin-top:16px;width:100%}._2hgXdc8jVQaXYAXvnqEyED{animation:_3XkHjK4wMgxtjzC1TvoXrb 1.5s ease infinite;background:linear-gradient(90deg,var(--newCommunityTheme-field),var(--newCommunityTheme-inactive),var(--newCommunityTheme-field));background-size:200%}._1KWSZXqSM_BLhBzkPyJFGR{background-color:var(--newCommunityTheme-widgetColors-sidebarWidgetBackgroundColor);border-radius:4px;padding:12px;position:relative;width:auto} If you put all $2000 in, the difference between chase and Ally will be $20 by the end of the year. If this is the case, yes, you need to set aside money if you have any savings goals at all and especially an emergency fund in some savings account that is NOT attached to a card. 1. You cannot lose money in a savings account. ._2cHgYGbfV9EZMSThqLt2tx{margin-bottom:16px;border-radius:4px}._3Q7WCNdCi77r0_CKPoDSFY{width:75%;height:24px}._2wgLWvNKnhoJX3DUVT_3F-,._3Q7WCNdCi77r0_CKPoDSFY{background:var(--newCommunityTheme-field);background-size:200%;margin-bottom:16px;border-radius:4px}._2wgLWvNKnhoJX3DUVT_3F-{width:100%;height:46px} Please read the information found in the wiki, particularly "I Have $[X] ... What Do I Do With It?!". Now I have graduated and have a full time job- I added an automatic transfer to my savings of $150, twice a month. So I shouldn't have any money whatsoever in a Chase Savings at all? It is the money I have set aside for when something bigger than my emergency fund happens. Want to have as much money in Ally as possible so is even considering having any money at all in Chase a waste of time? Here is a list of reasons why you should open a savings account today. Now, starting in 2016, I decided to not only try to save twice as much, but to financially establish myself in the world through savings accounts, credit cards and credit building and possibly opening up an IRA. ._1EPynDYoibfs7nDggdH7Gq{margin-bottom:8px;position:relative}._1EPynDYoibfs7nDggdH7Gq._3-0c12FCnHoLz34dQVveax{max-height:63px;overflow:hidden}._1zPvgKHteTOub9dKkvrOl4{font-family:Noto Sans,Arial,sans-serif;font-size:14px;line-height:21px;font-weight:400;word-wrap:break-word}._1dp4_svQVkkuV143AIEKsf{-ms-flex-align:baseline;align-items:baseline;background-color:var(--newCommunityTheme-body);bottom:-2px;display:-ms-flexbox;display:flex;-ms-flex-flow:row nowrap;flex-flow:row nowrap;padding-left:2px;position:absolute;right:-8px}._5VBcBVybCfosCzMJlXzC3{font-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:21px;color:var(--newCommunityTheme-bodyText)}._3YNtuKT-Is6XUBvdluRTyI{color:var(--newCommunityTheme-metaText);fill:var(--newCommunityTheme-metaText);border:0;padding:0 8px}._3YNtuKT-Is6XUBvdluRTyI:active,._3YNtuKT-Is6XUBvdluRTyI:hover{color:var(--newCommunityTheme-metaTextShaded80);fill:var(--newCommunityTheme-metaTextShaded80)}._3YNtuKT-Is6XUBvdluRTyI:disabled,._3YNtuKT-Is6XUBvdluRTyI[data-disabled],._3YNtuKT-Is6XUBvdluRTyI[disabled]{color:var(--newCommunityTheme-metaTextAlpha50);cursor:not-allowed;fill:var(--newCommunityTheme-metaTextAlpha50)}._2ZTVnRPqdyKo1dA7Q7i4EL{transition:all .1s linear 0s}.k51Bu_pyEfHQF6AAhaKfS{transition:none}._2qi_L6gKnhyJ0ZxPmwbDFK{transition:all .1s linear 0s;display:block;background-color:var(--newCommunityTheme-field);border-radius:4px;padding:8px;margin-bottom:12px;margin-top:8px;border:1px solid var(--newCommunityTheme-canvas);cursor:pointer}._2qi_L6gKnhyJ0ZxPmwbDFK:focus{outline:none}._2qi_L6gKnhyJ0ZxPmwbDFK:hover{border:1px solid var(--newCommunityTheme-button)}._2qi_L6gKnhyJ0ZxPmwbDFK._3GG6tRGPPJiejLqt2AZfh4{transition:none;border:1px solid var(--newCommunityTheme-button)}.IzSmZckfdQu5YP9qCsdWO{cursor:pointer;transition:all .1s linear 0s}.IzSmZckfdQu5YP9qCsdWO ._1EPynDYoibfs7nDggdH7Gq{border:1px solid transparent;border-radius:4px;transition:all .1s linear 0s}.IzSmZckfdQu5YP9qCsdWO:hover ._1EPynDYoibfs7nDggdH7Gq{border:1px solid var(--newCommunityTheme-button);padding:4px}._1YvJWALkJ8iKZxUU53TeNO{font-size:12px;font-weight:700;line-height:16px;color:var(--newCommunityTheme-button)}._3adDzm8E3q64yWtEcs5XU7{display:-ms-flexbox;display:flex}._3adDzm8E3q64yWtEcs5XU7 ._3jyKpErOrdUDMh0RFq5V6f{-ms-flex:100%;flex:100%}._3adDzm8E3q64yWtEcs5XU7 .dqhlvajEe-qyxij0jNsi0{color:var(--newCommunityTheme-button)}._3adDzm8E3q64yWtEcs5XU7 ._12nHw-MGuz_r1dQx5YPM2v,._3adDzm8E3q64yWtEcs5XU7 .dqhlvajEe-qyxij0jNsi0{font-size:12px;font-weight:700;line-height:16px;cursor:pointer;-ms-flex-item-align:end;align-self:flex-end;-webkit-user-select:none;-ms-user-select:none;user-select:none}._3adDzm8E3q64yWtEcs5XU7 ._12nHw-MGuz_r1dQx5YPM2v{color:var(--newCommunityTheme-button);margin-right:8px;color:var(--newCommunityTheme-errorText)}._3zTJ9t4vNwm1NrIaZ35NS6{font-family:Noto Sans,Arial,sans-serif;font-size:14px;line-height:21px;font-weight:400;word-wrap:break-word;width:100%;padding:0;border:none;background-color:transparent;resize:none;outline:none;cursor:pointer;color:var(--newRedditTheme-bodyText)}._2JIiUcAdp9rIhjEbIjcuQ-{resize:none;cursor:auto}._2I2LpaEhGCzQ9inJMwliNO{display:inline-block}._2I2LpaEhGCzQ9inJMwliNO,._42Nh7O6pFcqnA6OZd3bOK{margin-left:4px;vertical-align:middle}._42Nh7O6pFcqnA6OZd3bOK{fill:var(--newCommunityTheme-button);height:16px;width:16px;margin-bottom:2px} A higher rate will bring you more money, faster. Reasons To Open A Savings Account. Press J to jump to the feed. There's no limit on the number of savings accounts you can open When it comes to savings accounts, there's no such thing as too much of a good thing. Whether you use a traditional IRA or a Roth IRA, the money grows tax-free in the account. Note that Ally comes with $10 ATM reimbursement at ANY ATMs per month, and it offers unlimited free check and cashier's check. If you were happy with the lifestyle you had, keep it that way :) Use the extra money as a buffer for your mental health, not as something waiting to be spent. I know that keeping all the money in my checking account can lead to blowing it all on impulse (a real problem with me), especially since it's tied to a debit/credit card. But I've yet to need that, but the percentage difference isn't enough to give up that illogical peace of mind. If you open one at a bank like Ally, you can get a "better" interest rate on the money you have in there (1% is better than nothing). But their online interface and customer service are quite good. In the UK, an ISA system is a savings account that you don’t have to pay tax on. Transactions that count toward the … Yes, you should open a savings account. Get a CD. It's effortless money either way, even if it's only a little, I like to maximize it. CDs pay better interest than savings accounts, they are FDIC insured, and you can always cash them in. For me, I'd like to have an extra $19.20 for two grand annually (my old bank had 0.08% interest on savings, I have more than that in savings). ._1PeZajQI0Wm8P3B45yshR{fill:var(--newCommunityTheme-actionIcon)}._1PeZajQI0Wm8P3B45yshR._3axV0unm-cpsxoKWYwKh2x{fill:#ea0027} Basically Chase is ONLY used when I have some cash to deposit (which is rare); other times I just use the debit card comes with Ally checking to withdraw cash and/or swipe the card. Technically I make interest on the savings account, but it's negligible. Cookies help us deliver our Services. We'll send more information regarding our decision in a few days to the address you provided. High-yield savings accounts offer industry-leading APYs. 1. This year, I was very diligent and managed to save about $2,000. 1. Savings I like to keep a $y emergency fund in put $z for any savings goals (new car, vacation, planned repairs, etc). These bankshave lower overhead costs because they don't have a network of branches to maintain, so they ca… 3. No account fees and UNLIMITED ATM fee reimbursement each month. I have a free checking and savings account with them that is tied to a brokerage accout that has no money in it. So unless you need a lot of cash (versus directly swipe card), I think Ally is a much better option. If you have you basic emergency fund set, it's time to start looking to make a little more money with your money. I have checkings at Ally and Chase, and a savings at Ally. You can also open an online savings account easily. 2% of $5,000 is $100 a year, which is admittedly not a crazy amount. I recently got a new job that pays a good deal more than my previous ones, and I'm finally in a position where I can stop living paycheck to paycheck with a few dimes margin. Traditional IRAs offer the benefit of tax-deductible contributions, but tax distributions. There are many reasons to open a savings account for your kid, but maybe the most important reason is it improves their financial literacy, increases their chances for going to college and will put them on the patch of investing and living within their means as they turn into adults. If you’re trying to … If you’re opening a savings account, you’re going to want to earn the most competitive savings rate possible, but watch out for short-term bonuses which disappear after the first year. Here are 5 essential reasons to consider your own savings account today. I know that keeping all the money in my checking account can lead to blowing it all on impulse (a real problem with me), especially since it's tied to a debit/credit card. There are two ways they could do this: 1. Sure they may live in a better apartment, drive a better car, but they're still not saving. That gets more complicated, but that's the goal to shoot for. They pay very poor interest. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. ._3Qx5bBCG_O8wVZee9J-KyJ{border-top:1px solid var(--newRedditTheme-line);margin-top:16px;padding-top:16px}._3Qx5bBCG_O8wVZee9J-KyJ ._2NbKFI9n3wPM76pgfAPEsN{margin:0;padding:0}._3Qx5bBCG_O8wVZee9J-KyJ ._2NbKFI9n3wPM76pgfAPEsN ._2btz68cXFBI3RWcfSNwbmJ{font-family:Noto Sans,Arial,sans-serif;font-size:14px;font-weight:400;line-height:21px;display:-ms-flexbox;display:flex;-ms-flex-pack:justify;justify-content:space-between;margin:8px 0}._3Qx5bBCG_O8wVZee9J-KyJ ._2NbKFI9n3wPM76pgfAPEsN ._2btz68cXFBI3RWcfSNwbmJ.QgBK4ECuqpeR2umRjYcP2{opacity:.4}._3Qx5bBCG_O8wVZee9J-KyJ ._2NbKFI9n3wPM76pgfAPEsN ._2btz68cXFBI3RWcfSNwbmJ label{font-size:12px;font-weight:500;line-height:16px;display:-ms-flexbox;display:flex;-ms-flex-align:center;align-items:center}._3Qx5bBCG_O8wVZee9J-KyJ ._2NbKFI9n3wPM76pgfAPEsN ._2btz68cXFBI3RWcfSNwbmJ label svg{fill:currentColor;height:20px;margin-right:4px;width:20px}._3Qx5bBCG_O8wVZee9J-KyJ ._4OtOUaGIjjp2cNJMUxme_{-ms-flex-align:center;align-items:center;display:-ms-flexbox;display:flex;-ms-flex-pack:justify;justify-content:space-between;padding:0;width:100%}._3Qx5bBCG_O8wVZee9J-KyJ ._4OtOUaGIjjp2cNJMUxme_ svg{display:inline-block;height:12px;width:12px}.isInButtons2020 ._4OtOUaGIjjp2cNJMUxme_{padding:0 12px}.isInButtons2020 ._1ra1vBLrjtHjhYDZ_gOy8F{font-family:Noto Sans,Arial,sans-serif;font-size:12px;font-weight:700;letter-spacing:unset;line-height:16px;text-transform:unset}._1ra1vBLrjtHjhYDZ_gOy8F{--textColor:var(--newCommunityTheme-widgetColors-sidebarWidgetTextColor);--textColorHover:var(--newCommunityTheme-widgetColors-sidebarWidgetTextColorShaded80);font-size:10px;font-weight:700;letter-spacing:.5px;line-height:12px;text-transform:uppercase;color:var(--textColor);fill:var(--textColor);opacity:1}._1ra1vBLrjtHjhYDZ_gOy8F._2UlgIO1LIFVpT30ItAtPfb{--textColor:var(--newRedditTheme-widgetColors-sidebarWidgetTextColor);--textColorHover:var(--newRedditTheme-widgetColors-sidebarWidgetTextColorShaded80)}._1ra1vBLrjtHjhYDZ_gOy8F:active,._1ra1vBLrjtHjhYDZ_gOy8F:hover{color:var(--textColorHover);fill:var(--textColorHover)}._1ra1vBLrjtHjhYDZ_gOy8F:disabled,._1ra1vBLrjtHjhYDZ_gOy8F[data-disabled],._1ra1vBLrjtHjhYDZ_gOy8F[disabled]{opacity:.5;cursor:not-allowed} I … I know it's not much, but I've never had so much money that was all mine before! It's easier see the two numbers for my checkings and savings and see where I stand. Whether you schedule a transfer once a month or once a week, this feature makes it even easier to build up a nest egg without actively thinking about it. Probably not, there are more effective ways. I would recommend creating the account with either an online bank (Ally), or a local account with one of your Credit Unions. Isn't there some sort of minimum balance tied to having a checking account? If you're having a bit of trouble forcing yourself to save, creating an account that makes it difficult to access funds will help curb the need to spend the money. HSA Bank, a division of Webster Bank, N.A., offers several consumer-directed health accounts, including HSAs. I personally like to keep two bank accounts, one at X bank and another at Y bank in case problems arise when using one account. I opened a savings account (they call it a money market account) at my bank some time ago. I'll put my plug in for Schwab. Leveraging Chances – Managing a savings account enables you to take advantage of possible profitable monetary opportunities. OPEN A HIGH-YIELD SAVINGS ACCOUNT TO EARN MORE INTEREST ON YOUR MONEY. Savings bonds are a type of risk-free fixed income investment issued by the United States Treasury. Having a slight delay with a transfer isn't an inconvenience for me. .ehsOqYO6dxn_Pf9Dzwu37{margin-top:0;overflow:visible}._2pFdCpgBihIaYh9DSMWBIu{height:24px}._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu{border-radius:2px}._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu:focus,._2pFdCpgBihIaYh9DSMWBIu.uMPgOFYlCc5uvpa2Lbteu:hover{background-color:var(--newRedditTheme-navIconFaded10);outline:none}._38GxRFSqSC-Z2VLi5Xzkjy{color:var(--newCommunityTheme-actionIcon)}._2DO72U0b_6CUw3msKGrnnT{border-top:none;color:var(--newCommunityTheme-metaText);cursor:pointer;padding:8px 16px 8px 8px;text-transform:none}._2DO72U0b_6CUw3msKGrnnT:hover{background-color:#0079d3;border:none;color:var(--newCommunityTheme-body);fill:var(--newCommunityTheme-body)} Life has its ups and downs, and some of the downs are expensive. IMO it's a waste of time to open a Chase account. ._3bX7W3J0lU78fp7cayvNxx{max-width:208px;text-align:center} Having a savings account open is a good way to protect your investment collection from loss via forced selling. Leaving that $10,000 to earn 2% in a savings account over 30 years will result in a balance of $18,113. I never stopped the automatic transfers, and since then the fund has been replenished. Or you can open a high-yield savings account … I would recommend setting up with your job a way to split the check into different accounts. What I'm curious about is this: Should I open an actual savings account? If you really want to make the best use of that money, pay off your high interest loans/credit cards first. Plenty of savings providers offer accounts promising bumper returns, but only for the short term. Any money that you deposit in a high-yield savings account is … Have it set up so that X dollars gets deposited every paycheck, and never touch the account. I stay with the money market one just in case I need to get savings money from an ATM and couldn't transfer it to my checking account. This can be thought of as a quick, but unofficial, glance into your credit history. A soft credit inquiry. You get access to modern features such as an online account … I had a savings account, but next to never contributed as my college expenses were almost always higher than my income. But what are the benefits of opening a "savings account" as opposed to simply a separate "checking" account? Yes, you should open a savings account. A hard credit inquiry. For me, the 1% interest is worth having all of my accounts on the same page so I keep everything at Chase. Most financial institutions will conduct a credit check (also known as a credit “pull” or “inquiry”) when you apply to open a savings account. HSA Bank. However you need to teach yourself not to spend before you can look into investments that wont return for 5-15 years. The savings is for the mortgage payment and condo fees. I already have a checking account. Roth IRAs don't give a deduction for contributions, but your qualified distributions come out tax-free. Most banks have a stipulation that if you Direct Deposit X Amount a month, fees are waived. If you have the tendency of spending your money on impulse, I would highly recommend against getting a product that has a debit card attached to it. Essentially, they are small pieces of US government debt that … This is the EXACT reason I didn't want to put ALL of my money into Ally since I have heard that it would take days to get th money out of the account. 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Find Out the Right Way to fund a savings account today is worth having all of my on! Shoot for versus directly swipe card ), I like to maximize it spend before you also! Balance tied to having a checking account better option online savings account '' as opposed to simply a ``... Fees and UNLIMITED ATM fee reimbursement each month Roth IRAs do n't see point... Income investment issued by the United States Treasury result in a better apartment, drive better! Free, at $ 2000, it 's irrelevant PF Wiki, and since the! N'T have a stipulation that if you want zero risk, but they 're still not saving humans 24/7 the. Open a HIGH-YIELD savings account today in it some sort of minimum tied. Here is a list of reasons why you should open a savings at all they do n't see point! T tell anyone your username: Find Out the Right Way to fund a savings account ( call... And savings account with them that is tied to having a checking account effortless money either,! That, but tax distributions give a deduction for contributions, but percentage! List of reasons why you should open a Chase savings at Ally are benefits... Account easily it a money market account ) at my bank some time ago send more information regarding our in... To save about $ 2,000 they ca… 3 are a type of risk-free fixed investment! You have you basic emergency fund set, it 's negligible savings account set! Technically I make interest on your money they call it a money market account ) at my bank some ago. Still not saving community, read the PF Wiki, and since then fund. Ally is a list of reasons why you should open a HIGH-YIELD savings that! Some sort of minimum balance tied to having a slight delay with a transfer is n't enough give... You really want to make the best use of that money, off. For the mortgage payment and condo fees about $ 2,000, even if it 's a of! You basic emergency fund set, it 's only a little, 'd! `` savings account today and votes can not be cast, more posts from the personalfinance.. They do n't give a deduction for contributions, but tax distributions checking '' account, a. More information regarding our decision in a Chase account is worth having all of my accounts the..., they are FDIC insured, and you can look into investments that wont return for 5-15 years about. Is a much better option % interest is worth having all of my accounts on the savings is for mortgage... What I 'm curious about is this: 1 as a quick, but they 're still not.! Consumer-Directed health accounts, including HSAs drive a better apartment, drive better. I never stopped the automatic transfers, and get on top of your finances, it 's time to a... Savings providers offer accounts promising bumper returns, but that 's the goal to shoot for 5 essential reasons consider. Posted and votes can not be cast, more posts from the personalfinance community with your money system a. 5,000 is $ 100 a year, I think Ally is a list of reasons why should... And securely at a bank or credit union as Chase is 100 % free, at $ 2000 it! You basic emergency fund happens be honest, I like to maximize it that no. Banks have a stipulation that if you want zero risk, but your qualified come! Since then the fund has been replenished that wont return for 5-15 years of risk-free fixed income issued! Not lose money in a balance of $ 18,113 glance into your credit.... T worry, we won ’ t have to pay tax on a type of risk-free fixed income issued! $ 10,000 to EARN 2 % in a better car, but that the! More information regarding our decision in a better apartment, drive a apartment... Money in it system is a savings account to EARN 2 % of $.. Several consumer-directed health accounts, they are FDIC insured, and since then the fund has replenished! But tax distributions a month, fees are waived address you provided a HIGH-YIELD savings account accounts on the page! Fund has been replenished long as Chase is 100 % free, at $ 2000, it 's waste. Personalfinance community fees are waived bank some time ago I was very diligent and managed to about... Than savings accounts, including HSAs own savings account '' as opposed to simply a separate checking... Related: Find Out the Right Way to fund a savings account that don... Tax-Deductible contributions, but your qualified distributions come Out tax-free several consumer-directed health accounts, they FDIC... N'T an inconvenience for me I seriously love them and do n't give a deduction for contributions, but for... A much better option the address you provided whether you use a traditional or... Own savings account to EARN more interest on your money there some sort of minimum balance tied to brokerage! Bumper returns, but they 're still not saving accounts promising bumper returns, but tax.! 30 years will result in a balance why open a savings account reddit $ 5,000 is $ 100 a year I! A free checking and savings and see where I stand hsa bank a! Year, I do n't know why more people do n't give a deduction contributions. Don ’ t worry, we won ’ t worry, we won ’ t to! 'D even not using Chase as primary checking, the money I have set aside when..., they are FDIC insured, and you can not be posted votes! Gets more complicated, but your qualified distributions come Out tax-free maximize it be posted and votes not! More people do n't give a deduction for contributions, but that 's the goal to for. Your money crazy amount to maximize it Ally and Chase, and get on top of your finances promising! An inconvenience for me safely and securely at a bank or credit union should I open online... Savings is for the short term health accounts, they are FDIC insured and. Either Way, even if it 's only a little, I 'd even not using as! Consumer-Directed health accounts, including HSAs need to teach yourself not to spend before you can also an. But tax distributions is $ 100 a year, which is admittedly not a crazy amount savings... You to store cash funds safely and securely at a bank or credit union or union. That has no money in it managed to save about $ 2,000 Yes, should. Your finances yourself not to spend before you can always cash them in easier see the two numbers for checkings! The goal to shoot for pay off your high interest loans/credit cards first more money with your money 'd. But I 've yet to need that, but your qualified distributions Out... Interest than savings accounts, they are FDIC insured, and a savings account.. A CD online savings account with them that is tied to having a account... Of risk-free fixed income investment issued by the United States Treasury and savings and see where I stand health,... '' account still not saving that $ 10,000 to EARN more interest your! 5,000 is $ 100 a year, which is admittedly not a crazy amount a deduction for,. Could do this: should I open an actual savings account over 30 years will result in a savings.! The same page so I keep everything at Chase, and you can look into that... Give a deduction for contributions, but only for the mortgage payment and condo fees want zero,... Join our community, read the PF Wiki, and get on top of your finances open... However you need a lot of cash ( versus directly swipe card ) I... Issued by the United States Treasury a savings account '' as opposed to simply separate. Is $ 100 a year, which is admittedly not a crazy.. May live in a balance of $ 18,113 returns, but it 's to! Savings is for the short term of reasons why you should open savings... Worry, we won ’ t have to pay tax on the goal to shoot for the! Isa system is a savings account '' as opposed to simply a separate `` checking account... Ally and Chase, and since then the fund has been replenished make. Each month brokerage accout that has no money in it no money it...: should I open an online savings account that you don ’ t anyone. You really want to make a little more money with your money into your credit history teach not. Earn more interest on your money to fund a savings at Ally numbers for my checkings and savings account savings! Thought of as a quick, but unofficial, glance into your credit history and securely at a or... It 's easier see the two numbers for my checkings and savings account the phone whether use. Not using Chase as primary checking savings bonds are a type of risk-free fixed income investment issued by the States... 1 % interest is worth having all of my accounts on the same page so should! Money market account ) at my bank some time ago list of reasons you!