MODULE 3
1. Checking and Savings Accounts
Choose Your Accounts Wisely
Your checking account should include the money you spend on a monthly basis. It’s easy to ignore the little extra fees that come out of your account, but how much is your bank actually costing you? Consider if you want to use an online option with no fees, or another bank with very low fees. But don’t simply stick to the bank you’ve chosen in the past because it’s convenient.
Your savings account should hold all of your money that will go towards future goals. This includes your emergency savings fund! You should really consider opening a high yield savings account, because this is a risk-free way of earning extra money. It comes with compound interest and the APY (annual percentage yield) will determine how much interest you’ll earn in a year. The APY will fluctuate over time, but you’ll always make more money if you use this account. You should try finding a savings account that will allow you to separate your funds into different categories.
Make sure your bank is FDIC insured! And weigh the pros and cons of having an online vs. traditional bank.
Checking Accounts With No Fees
High Yield Savings Accounts
(Canadian options include EQ Bank and Tangerine)
Your Challenge for This Week…
Open up a high yield savings account, and make sure to research all of your bank options to see if you’re using the best checking account possible. It doesn’t take long at all!