You Need These 5 Types of Bank Accounts
Some people manage all their money with just one checking account, while others have numerous bank accounts but end up spending a lot on fees and charges for the account. If you are not sure of what accounts to open, this guide will help.
A No-Fee Checking Account
If your bank charges you money to access your own money, it’s best you switch to another bank. People, today, have more choices than ever before when it comes to banking. With all the brick-and-mortar banks, online banks, and credit unions out there, there’s no reason for you to continue paying a fee for your checking account.
A Savings Account for Your Emergency Savings
Everyone needs an emergency fund. Say you happen to lose your job or have a healthcare emergency and need cash for it, it is your emergency fund that will help you pay the bills. It’s a good idea to save up enough to pay for at least 3-6 months of living expenses. If you don’t have an emergency fund yet, consider setting aside $3,000 first and then building it.
A Rewards Credit Card
While this is not technically a bank account, you still need it. A rewards credit card is one of the best ways to earn rewards, like points, cash, or miles, for doing what you already do.
An Investment Account for Retirement
In addition to having a checking account and a savings account, it’s important that you open an investment account, either through your employer or a brokerage, to make investments that will pay off in the long run. Although investing always comes with some amount of risk, diversifying your investments and buying stocks that are suited to your risk appetite will help you.
High-Interest Savings Account
In addition to opening a regular savings account for your emergency fund, you should also consider opening a savings account that pays a high interest – you’ll ideally want to use this account to save up money for financial goals like an international vacation or the down payment on a home.