Online Checking Account Archives

March 8, 2021

4 Benefits of a Rewards Checking Account

Earning cash back is one of the many benefits of a rewards checking account.

You’re probably looking to stretch your dollars as far as possible. You work hard for your money, so it’s only natural to try to get the most out of your spend, whether that’s on your utility bill, your gym membership or the newest tech gadget that’s all the rage. While rewards credit cards have traditionally been the go-to for those looking to maximize their spend, there are also rewards checking accounts that allow you to earn cash back for your debit card purchases.

Unlike a cashback credit card, your credit score isn’t a factor when you open a rewards checking account. You also won’t have to pay (or accrue) interest on your debit card. Translation: Easier rewards and less risk.

The advantages of a rewards checking account can include earning cash back on debit card purchases

“Rewards checking accounts can be a fantastic option for people who want to stay clear of credit cards,” says Neal Frankle, a certified financial planner and owner of Wealth Pilgrim, a financial planning blog. “You get the points without running up debt.”

As you look for new ways to spend with the ease and convenience of debit, consider the following rewards checking account benefits:

1. You earn cash back easily

Earning cash back is the most immediate, and probably the most gratifying, of the many benefits of a rewards checking account. Discover Cashback Debit, winner of NerdWallet’s 2020 Best Checking Account Overall Award,allows you to earn 1% cash back on up to $3,000 in debit card purchases each month.¹ That means you can earn up to $360 a year in cashback bonus.

Say hello to
cash back on debit
card purchases.

No monthly fees.
No balance requirements.
No, really.

See Details

Discover Bank, Member FDIC

Just think of all the ways you can put the money you get back to good use. You could save up and splurge on something special, like a date night. Or you could move your money straight to your online savings account to beef up your emergency fund. If you’re paying off student loans, or another type of debt, you could even use your cash back to help repay your loans more quickly and save money on interest. An advantage of a rewards checking account is that you can achieve other financial priorities through smart spending.

Even those who frequently charge to a rewards credit card may also see the benefits of a rewards checking account. Your debit card could be a good way to pay for everyday purchases (think lunch, transportation, latest tech accessories), and you can use it when a merchant has a minimum transaction amount required for credit cards. In either case, an advantage of a rewards checking account is that your debit card is earning you cash back as you keep up with your regular expenses.

“Rewards checking accounts can be a fantastic option for people who want to stay clear of credit cards. You get the points without running up debt.”

– Neal Frankle, certified financial planner and owner of financial planning blog Wealth Pilgrim

2. You may be less likely to overspend

While cashback programs may be common for credit cards, if you don’t have a good credit history, you may not be eligible for many of the best rewards cards. And—because who’s not tempted to overspend occasionally?—charging to earn rewards can leave you accruing high-interest debt if your credit card comes with a high annual percentage rate. This could more than offset the rewards you receive.

One of the advantages of a rewards checking account is that it can make such costly overspending more difficult because you can only withdraw what money you have in the account.

“The beauty of a rewards checking account is that you never have to worry about going into debt,” Frankle says. When you make a purchase with your debit card, in most cases, the money gets pulled from your account right away. Conversely, with a credit card, you are charged immediately, but don’t have to pay until later.

Unlike a credit card, the benefits of a rewards checking account include helping you stay on budget

Karen Cordaway, a personal finance blogger, says another benefit of a rewards checking account is that it can help you make better purchasing decisions.

“The balance in a checking account can set a financial boundary and make you live within your means,” Cordaway says. “I believe it keeps you more accountable and aware of what you can afford.”

If you try to overspend, crossing that proverbial “financial boundary,” the transaction will be declined. Or, if you have overdraft protection, money will be transferred to your checking account from a connected savings account to complete the purchase.

Because you can't spend money that's not in your account, rewards checking account benefits include keeping you on budget

3. It could help you stick to a budget

You can get additional rewards checking account benefits if you think of your rewards checking account as a budgeting tool. Cordaway, for example, says that using a checking account and debit card could help you stick to your budget because you can easily review your account to track your spending, adjust your budget and find places to cut in order to save.

“If payday is a week away and you only have $100 left in your account, you’ll have to prioritize your spending and may choose to buy groceries instead of a new pair of shoes,” she says.

Although a benefit of a rewards checking account is that it can help you stick to your budget by closely monitoring your spending, don’t underestimate the need to think carefully before making a purchase.

“People with rewards checking accounts might still spend more than they should to rack up those rewards,” Frankle says.

“The balance in a checking account can set a financial boundary and make you live within your means. I believe it keeps you more accountable and aware of what you can afford.”

– Karen Cordaway, a personal finance blogger

4. You get the perks of online and mobile banking

Rewards checking account benefits may include an online portal and mobile app, which you can use to check your balance, initiate transfers or pay bills. You can also link your account to budgeting software if you want to take your budgeting skills to the next level. Budgeting programs can help you spot trends—like how much you’re really spending on after-work outings—that may not be as clear when you’re just scrolling through your checking account transactions.

Another example of a rewards checking account benefit is that the account may have fewer or lower fees. Discover Cashback Debit has no monthly fees or monthly balance requirements. Bonus: If your account is part of a large no-fee ATM network, you’ll gain even more access to your cash.

Compare rewards checking account benefits

While the advantages of a rewards checking account can be numerous, not all accounts have the same features.

Frankle recommends reviewing the account terms and features, as well as the associated fees and the bank’s customer support hours. This way you can base your decision on more than just one feature, such as a rewards program. Following Frankle’s suggestion when considering the benefits of a rewards checking account can help you find a rewards checking account that meets your financial goals.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^®, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the US and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

Source: discover.com

March 8, 2021

Should I Choose a Checking Account or Savings Account?

Different? Yes. Complementary? That too. Learn when to use a checking or savings account.

Every day you make hundreds of choices. Should you wear jeans or dress pants to work? Eat a burrito or sandwich for lunch? Take public transit or hop in a cab? These may be easy questions to answer, but sometimes you get stuck on a question because you don’t know enough about the relative merits of one choice versus another.

This may be especially true when focusing on finances, particularly when comparing different types of bank accounts. It can seem like a puzzle, right? If you’re debating whether to open a checking account or savings account, you’re probably ready for a rundown of the benefits of each account type. The answer to the checking account versus savings account question will ultimately come down to how you intend to use your account and the funds you park there.

Make one of today’s choices easier by answering the following questions to decide whether you should choose a checking account or savings account:

Do you need regular access to your funds?

If you want to deposit money that you plan on regularly accessing for everyday spending, a checking account is the way to go.

If you're asking yourself "why should I open a checking account instead of a savings account?" it's important to research both types of accounts.

“If you anticipate heavy monthly traffic in your account from paying your bills—such as student loans, car loans, credit cards, auto insurance, mortgage—then it’s best to set up a checking account,” says Ogechi Igbokwe, founder of OneSavvyDollar, a website that helps millennials find jobs and make good financial choices.

Igbokwe adds that federal law limits the number of certain types of withdrawals and transfers from savings accounts.¹

checking account benefit to consider.

“Checking account holders have access to online and mobile banking, ATMs and the use of debit cards and checks to make purchases or withdraw funds from the account,” adds Alexander Lowry, executive director of the Master of Science in Financial Analysis program at Gordon College in Wenham, Massachusetts.

You can choose a checking account or savings account based on how often you'll need to access your funds.

You can still get access to online and mobile banking if you open a savings account, and you can have official checks drawn on your account. Bonus: If your savings account is at the same financial institution as your checking account, you could also use your debit card for ATM withdrawals. While savings accounts don’t often allow you to write checks for purchases, you can transfer or withdraw your funds ahead of time.

How much are you looking to deposit?

If you’re thinking about opening a checking account or savings account, it may be helpful to consider how much your money can earn in both accounts.

Since checking accounts don’t typically pay interest, they may be better suited for smaller balances. Still, some offer other rewards, such as Discover Cashback Debit, which allows you to earn 1% cash back on up to $3,000 in qualifying debit card purchases each month.²

Learn More

If you’re looking to open a checking account or savings account and want to deposit a larger amount of money—perhaps you want to build an emergency fund or are planning for a big financial milestone—you might want to put it in savings.

“[Savings accounts] are ideal for individuals looking to save while earning interest,” Lowry says.

Should you use both a checking and savings account?

While choosing a checking account or savings account depends on your financial needs, many people ultimately find that having both types of bank accounts is the best way to improve their money management and achieve their financial goals. According to a Discover Savings Survey, 41 percent of those using a savings account also use a checking account.

“Using a savings account can increase your propensity to save,” Lowry says. “On the other hand, checking accounts help you keep better track of what you spend. Thus the two accounts can work hand in glove to help set you on a better path to financial knowledge and stability.”

Take full advantage of your new account

If you decide to open a checking account, Lowry recommends managing your checking account wisely.

“A checking account is a primary tool for managing personal finances,” he says. “Be sure to realize the full opportunity it avails by signing up for direct deposit, signing up for online and mobile banking, taking advantage of alerts and arranging automatic payments.”

Now that you’ve figured out whether to open a checking account or savings account, you can move on to answering all the other question that pop up in a given day. We hope you’re pleased with the outcome of that burrito versus sandwich lunch debate, too.

¹Federal law limits certain types of withdrawals and transfers from savings and money market accounts to a combined total of 6 per calendar month per account. There are no limits on ATM withdrawals or official checks mailed to you. To get an account with an unlimited number of transactions, consider opening a Discover Cashback Debit account. If you go over these limitations on more than an occasional basis, your account may be closed. See Section 11 of the Deposit Account Agreement for more details.

²ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

Source: discover.com

March 7, 2021

Where Should I Keep My Money? Consider These 4 Bank Accounts

Katherine Pomerantz, owner of The Bookkeeping Artist, an accounting and financial strategy firm for small businesses and entrepreneurs, knows how easy it is to get stuck in a financial rut. While putting your finances on autopilot is a great way to relieve the pressure of managing bills, paying off debt and saving for the future, it’s possible to automate your finances so much that you miss out on new opportunities to make your money work harder for you. Pomerantz says plenty of her clients use a savings account, for example, but she likes to help them look for ways to “double down on growing their income.”

Could you also benefit from taking a fresh look at your finances? Maybe you’ve been putting money in the same types of bank accounts for years, but haven’t checked how much you’re earning. Or maybe you’ve increased your earning potential (congrats!) but haven’t adjusted your approach to saving accordingly. Your savings diligence is admirable, but it might be time to take stock of your financial strategy to see if there are other types of bank accounts you could use to maximize your money.

Ask yourself: Where is my money? Where should I keep my money? And, where should I keep my savings? As you review your answers to these questions, and think about moving your hard-earned dollars to different types of bank accounts, here are a few options to consider:

If: You use a checking account
Then: Consider a rewards checking account

Most people use a checking account because it’s an easy place to store money, pay bills and make small purchases. If a checking account (and debit card) is part of your regular financial routine, you may want to find an account that rewards you for using the account. Whether a bank pays interest on your balance or provides cash back on your debit card purchases, the benefit of a rewards checking account is that it lets you earn a little extra on the transactions you’re already making on a daily basis.

A rewards checking account is one of the few types of bank accounts that gives you cash back for your everyday spending

But choose carefully. Some types of bank accounts tie their rewards to high minimum balances, charge a monthly fee or limit rewards to transactions that require a signature. Be sure you know the requirements and, when asking yourself where should I keep my money, also ask yourself whether you can meet any requirements on a regular basis. Discover Cashback Debit allows you to earn 1% cash back on up to $3,000 in qualifying debit card purchases each month and has no monthly fees or monthly balance requirements.¹

If: You use a traditional savings account
Then: Consider an online savings account

A savings account is a good place for your emergency fund because the money can be easily accessed when you need it.² Interest rates, however, can be meager. Once you’ve saved enough to cover your immediate emergency fund needs, it’s time to ask yourself: Where should I keep my savings?

While interest rates are changing rapidly, online savings accounts may help you earn a better return. They’re similar to the accounts offered by traditional brick-and-mortar banks, but because online banks have lower overhead, they often offer higher rates. You may also be able to find accounts, like the Discover Online Savings Account, that have no monthly fees for maintenance or balance requirements. This means your savings can grow more quickly.

Burke Does, uses an online savings account because of the higher interest rate.

“I like that mine is at a separate bank from where I do my traditional banking,” Burke says, “because it makes it a little bit less tempting to use the money when it’s not actually an emergency.”

A CD can help you save for your goals— and it's a great answer to the question, "where should I keep my money?"

If: You have a money market account
Then: Consider a certificate of deposit (CD)

When comparing types of bank accounts, consumers may choose to save with a money market account if they find one with a competitive interest rate and enjoy the flexibility of withdrawing money when needed. Money market accounts can also be enticing when they offer check writing and debit card access.² If you’re just parking your money in a money market account and don’t actually need to make withdrawals, you may be able to earn more with a CD.

With a CD, you agree to leave your money in the bank for a set term. Typically, the longer the deposit period, the higher the interest rate. Chelsea Brennan, an investment professional and blogger at Mama Fish Saves, says the benefit of saving for shorter-term goals with a CD is that your money is more likely to remain committed to its purpose. Alternatively, when you can dip into the funds easily, as with a money market account (and some other types of bank accounts), “this only makes it harder to reach your ultimate goal,” she says.

A simple way to reach your goals.

Watch your savings grow with a CD.

Lock in Your Rate

Certificate
of Deposit

Discover Bank, Member FDIC

If the answer to where should I keep my savings leads you to open a certificate of deposit, note that you’ll be charged an early withdrawal penalty if you take out your money before the CD maturity date. You may want to avoid putting your money in a CD if there’s a chance you’ll need it to cover an emergency before it matures.

If: You use a 401(k)
Then: Consider an Individual Retirement Account (IRA)

An employer-sponsored retirement plan is an excellent workplace perk, especially if your employer provides a matching contribution. If you want to ramp up your retirement savings, you could consider contributing money to both a 401(k) and an IRA.

Wondering, "where should I keep my savings?" Consider an IRA to help build your nest egg

Opening a Roth IRA can be a way to diversify your retirement savings and create a tax-free stream of income for later in life, since distributions are tax-free in retirement. However, as you consider where should I keep my savings, it’s important to know that contributions to a Roth IRA are limited by income, regardless of whether you participate in other retirement plans. Contributions to a traditional IRA are tax-deferred now, but taxable in retirement.

Pomerantz, the owner of The Bookkeeping Artist, works with a married couple who is using an IRA to save for a home down payment. Normally, withdrawing money from an IRA before the age of 59½ means paying a 10 percent additional tax penalty, according to the IRS. But there is an exception if the money is being used to buy or build your first home.

Pomerantz says her clients already have retirement savings in employer-sponsored accounts. They were trying to save for a down payment for their first home, but kept dipping into their savings account for other purchases.

“They wanted to open an entirely separate account that they couldn’t withdraw from whenever they wanted,” Pomerantz says. “That’s when they thought of opening an IRA. Their savings grew exponentially,” she says.

If you’re considering opening an IRA for your retirement plan, keep in mind that you have more options to choose from besides Roth vs. traditional. For example, Discover IRA Accounts offer two distinct, but complementary accounts.

A Discover IRA CD generally offers higher rates at fixed terms, making it a good choice for a long-term retirement plan. A Discover IRA Savings Account, on the other hand, provides a retirement savings option that allows for flexible contributions and withdrawals. An IRA Savings Account, with no minimum balance requirement, is a great place to stash your retirement savings if you are just getting started and looking for an account that will work with any budget. Keep in mind that you may have an IRS early withdrawal penalty if you withdraw your finds prior to age 59½. Consider consulting a tax advisor to discuss your specific situation.

As you consider how to manage IRAs, note that an IRA savings account can also be a place to stash funds from a maturing IRA CD if you’re not ready to lock in another term.

Where should I keep my money?

If it’s been a while since you asked yourself where should I keep my money, it might be time to mix it up. Whether you want to keep your money accessible, or save it and let it grow, there are several types of bank accounts that can help you reach your financial goals. Whichever mix of accounts you choose, make sure to regularly check in and assess that your financial setup is aligned with your short- and long-term goals.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

² Savings and Money Market Accounts may have limitations on the number of transactions out of the account. Check account agreements for more information.

Source: discover.com

March 7, 2021

Why Your Debit Card May Be the Secret to Building Good Money Habits

A debit card isn’t just for spending. It’s also a tool for getting your finances on track.

Many people view their checking account as their primary tool for everyday spending and bill pay. Great. But few realize the piece of plastic that comes with your checking account can help you build solid spending habits. Yep, we’re talking about the power of your debit card.

“The main advantage of using a debit card over a credit card is you’re spending money you actually have,” says Josh Hastings, founder of personal finance blog Money Life Wax.

“When my wife and I discuss our budget, we base it on the money we have, not the money credit might allow us to have,” he says.

To build good money habits with a debit card—and even spend less money with a debit card—try these three tips:

1. Monitor your spending

Budget boundaries are huge if you want to spend less money with a debit card.

Tracking your spending habits can help you spend less money with a debit card.

“Tracking your spending is one of the quickest ways to develop good financial discipline,” Hastings says. If you’re spending with debit, plan to regularly check in on your account balance and transaction history by logging into online or mobile banking.

You can also try a financial app to build good money habits with a debit card, says Matthew LaMont, a financial advisor with Periscope Financial in Roseville, California.

“Most banking apps offer spending analytics to help categorize your transactions,” he says. Budgeting apps that sync with your checking account may also have this feature.

“Knowing where your money is going is the first step to being able to redirect it to where you want it to go,” LaMont adds.

2. Remove the temptation to overspend

Since you’re not handing over physical cash to make your purchases, Hastings says debit cards can lead to an “out of sight, out of mind” mentality if you’re not careful.

To ditch overspending and to build good money habits with a debit card, consider setting up email or text alerts for new debit card purchases. This can encourage you to get in the habit of viewing your debit card like cash, and you may be tempted to spend less money with a debit card when there’s a regular reminder of what’s coming out of your account.

To build good money habits with a debit card, Hastings also recommends avoiding impulse buys. Try imposing a 48-hour debit rule to think about a purchase before committing your funds, scheduling no-spend days on your calendar or simply leaving your debit card at home if you know you won’t need it.

To prevent impulse purchases and spend less money with a debit card, follow the 48-hour debit rule to think about a purchase before buying.

Spending temptation can also hit when you’re shopping online. Ever load up your online shopping cart with more items than you really need? Applying the 48-hour debit rule can help you decide if those items are must-haves, and if it’s a no-spend kind of day, you’ll need to give your online purchases some extra thought before completing that order.

3. Let debit and savings work together

If you’re striving to build good money habits with a debit card, consider linking your checking account to your savings account. This can make it simple to schedule transfers if you have extra room in your budget for savings. Bonus: Scheduling automatic transfers from checking to savings can reduce the temptation to spend funds you have earmarked for other goals (starting an emergency fund or saving up for a big vacay, maybe?).

Linking your accounts could be problematic, however, if you get into a routine of moving money from savings to checking to cover unnecessary or out-of-budget debit purchases.

“Savings is designed for just that—saving,” Hastings says. “Transferring savings to your checking when you’re running low doesn’t promote positive financial habits. It actually encourages bad ones,” he adds.

Spend less money with a debit card

A debit card can be a useful tool for managing your finances. But to build good money habits with a debit card, you’ll need to use it wisely. Having the right mindset and understanding why you’re spending with debit, rather than cash or credit, is helpful for keeping your spending in check. Remember that when you spend less money with a debit card you may have money left over in your budget to save and pursue your financial goals.

Source: discover.com

March 5, 2021

How to Choose a Checking Account Based on 4 Priorities

There’s a perfect checking account for everyone. Find yours by evaluating these 4 checking account considerations.

Looking to open a new checking account? Maybe it’s time for your very first one as you head off to college. Or maybe you’ve reassessed your finances and have decided to move your checking account to a new bank. You could even be content with your current account but interested in adding a new one to the mix to help budget for certain expenses.

Regardless of why you have checking on your mind, there are a lot of considerations for choosing a checking account. While physical convenience—the location of a brick-and-mortar bank and its ATMs—used to be a top priority, online and mobile banking now give you more options than simply whichever bank is down the street. There are also accounts that pay interest on checking balances, those that offer rewards for certain types of transactions and online-only accounts that skip the most common checking account fees.

How do I select a checking account when there are so many options out there, you ask? It becomes easier to choose a checking account if you consider the following four factors:

1. Account fees

Even though the money in your account is yours, there could be costs associated with some types of checking accounts in the form of fees.

Comparing fees between banks or types of checking accounts isn’t always straightforward, says Jennifer Jackson, a blogger at ADLT 101, a website that aims to help students and young adults transition into adulthood. Jackson says many of her clients aren’t even aware their bank is charging fees. “A person may have opened the account with enough money to avoid maintenance or minimum balance fees, but when their balance drops, they don’t notice the bank starts charging fees,” she says.

R.J. Weiss, a certified financial planner and blogger at The Ways To Wealth, says it’s important to think about how you handle money if fees are one of your considerations for choosing a checking account. “If your account balance hovers around zero, you’ll want to make sure the bank doesn’t charge a minimum balance fee, and you’ll want overdraft protection to ensure you’re not charged for overdrawing the account,” he says. If you like to keep cash on hand and regularly hit the ATM, you’ll want to consider checking accounts that give you access to a large network of no-fee ATMs, he adds.

When comparing types of checking accounts, here are some common fees to consider:

Monthly fees. The average monthly maintenance fee for a basic checking account from the five largest U.S. banks is $10.99, according to a 2017 survey from MyBankTracker, a consumer banking comparison site. Before you choose a checking account, find out whether the bank charges a monthly maintenance fee and if there is specific account activity that could waive the fee.
Minimum balance requirement. Some banks charge a fee if your balance falls below a specified minimum. Minimum balance requirements vary by bank, but according to the MyBankTracker survey, you may need to maintain a balance of $1,000 to $1,500 at some of the major U.S. banks. When comparing types of checking accounts, look for one with no minimum balance requirement if you tend to keep less than $1,000 in your account or like to have flexibility when making large withdrawals.
Overdraft fee. If you spend more than you have in your checking account, your bank may allow your account balance to go negative, then charge an overdraft fee. According to MyBankTracker, the average overdraft fee at the 10 largest U.S. banks was $35.20 in 2017.
ATM fees. If you use an out-of-network ATM, you may be charged a fee by both the ATM operator and your own bank. According to a survey from Bankrate, the average out-of-network ATM surcharge was $2.97 in 2017, which can add up if you withdraw cash often.
Foreign transaction fees. If you regularly travel internationally, keep in mind that your bank may charge a foreign transaction fee if you use your debit card or withdraw cash from an ATM. A 2018 report from MyBankTracker shows that the largest U.S. banks charge a fee between $2 and $5 per foreign transaction and 0% to 3% of the transaction amount for using a foreign ATM.

The average monthly maintenance fee for a basic checking account from the five largest U.S. banks is $10.99.

– MyBankTracker 2017 survey

2. Incentives

Earning money from your bank isn’t just for savings accounts. Incentives in the form of earned interest or rewards may be a key consideration for choosing a checking account.

Interest-bearing checking accounts pay interest to the account holder, similar to how interest is earned on a savings account. But that interest rate will vary depending on the type of checking account. According to data from ValuePenguin, the average APY for a checking account at a brick-and-mortar bank was 0.04% in 2018, whereas online-only banks offered APYs of 1.00% or higher. Before you choose a checking account based on the interest, consider whether your money will sit there long enough to earn it and whether you have to meet a minimum direct deposit or minimum balance requirement each month.

If you have interest covered with your savings accounts, another option when choosing a checking account is to look for a rewards checking account. Discover’s checking account, Cashback Debit, lets you earn 1% cash back on up to $3,000 in debit card purchases each month.¹

Learn More

“Anything that gives you perks is nice,” Jackson says, “but read the fine print.” Any rewards you earn can quickly be offset by fees.

3. Convenience

Feel like your calendar is crammed and you’ll never get through your to-do list? That’s why one of your considerations for choosing a checking account should be online and mobile access. Being able to check your balance, pay bills and make deposits from your computer and on the go from your phone can make managing your checking account as convenient as checking in on social media.

“If you deposit a lot of checks, online or mobile deposits can save a lot of time and transportation,” Weiss says. “We’re at an age where there are very few reasons to go into a bank,” he adds.

4. Customer service

While technology makes it possible to handle so many banking functions on your own, online or through a mobile app, you’ll want customer service to be available when you do need some extra assistance.

If you’re trying to choose a checking account, Jackson recommends reading online customer reviews to get an idea of a bank’s customer service. “You could be better off going to a bank with fewer perks but a great reputation for customer service,” Jackson says. “For instance, if I go to an ATM, but I can’t withdraw my money, I’ll have to call the bank. If I’m calling, it’s probably an emergency. Limited customer service hours would be a deal breaker.”

“You could be better off going to a bank with fewer perks but a great reputation for customer service.”

– Jennifer Jackson, blogger at ADLT 101

Choosing the right checking account

A checking account is more than just a place to deposit your paycheck and a place from which you pay your bills. It’s the hub of your personal finances, and the right checking account can help improve your money management. Before you open a checking account, think through the above considerations for choosing a checking account. The best account will serve your needs without costing a lot of money in fees and have customer service that’s available when you need it.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

Source: discover.com

March 5, 2021

All About Apps? Great, But There Are Reasons Millennials Still Need a Checking Account

Even if you frequent the app store, you can’t leave a checking account out of the money picture.

Millennials are glued to their mobile devices for more than just scrolling through social media and snapping selfies. Many millennials use apps and mobile tools to pay their bills and mobile payment services to send and receive money.

“Aside from the convenience of sending money with the tap of a finger, virtual wallets are free to use and offer quick transfers,” says Jennifer McDermott, head of communications and a consumer advocate with Finder.

Virtual wallets—also called digital wallets—offer a way to store different payment information and passwords from multiple accounts in one place.

They even “allow millennials to charge friends in real time, making splitting the costs of meals, gifts and housing easier than ever,” McDermott adds.

Since financial apps and tools are all the rage, do millennials need a checking account? The answer is still a resounding yes.

While there are financial apps to help you manage your money, there are good reasons millennials need a checking account as part of their financial strategy. The challenge is figuring out what millennials want from a checking account that apps simply can’t provide.

What checking accounts do that apps can’t

Checking accounts offer some benefits that digital wallets lack, McDermott says. One reason millennials need a checking account is that you can deposit checks and pay bills from your account. Digital wallets are not necessarily designed for this—they are simply for making purchases or sending money, McDermott ads.

Having a checking account also allows you to utilize direct deposit and skip the hassle of manually depositing each paycheck from your employer. If your account is insured by the FDIC, your money is safeguarded, too—if your bank fails, your deposits are insured up to the maximum amount allowed by law. And while often overlooked, you can even use your checking account as a budgeting tool.

“Checking accounts help you track your spending by reporting debit transactions in real time,” McDermott says. “With a digital wallet, it can be easy to get in the habit of spending money without keeping track of your [checking] account balance. For someone who’s just learning how to take care of their money, that can be an unfortunate habit to fall into.”

If you’re trying to find the right checking account for your lifestyle, a simple checking account can be just what’s needed when you’re in the early stages of financial management, says Mark A. Ranta, head of digital banking solutions at ACI Worldwide, an electronic payments solutions provider.

Traditional checking accounts have evolved to meet the need for easy access through online and mobile banking. “With today’s financial tools, you can see where your money is going and when it’s coming in, all in real time from your mobile device,” Ranta says.

Choosing a checking account

How millennials choose their checking account ties in to what they want from a checking account. Millennials often go online with their finances top-of-mind to:

View statements and transactions
Set up automated, recurring payments
Transfer money electronically to friends and family
Analyze your spending

A good checking account should allow you to do all of these things from your computer or mobile device. You could also add earning rewards to the list of reasons millennials need a checking account.

Discover Cashback Debit allows you to earn 1% cash back on up to $3,000 in debit card purchases each month.¹ The incentive to earn cash rewards, which could be used to grow your savings or pay down debt, may factor into how millennials choose their checking account.

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While there might be some commonalities in what millennials want from a checking account, you also need to consider which features are most important to you personally. Easy access to no-fee ATMs may be a priority for millennials who like to have cash in their wallet at all times, for example. For others, it might be avoiding checking account fees.

“There are so many flavors and options out there that it’s essential to start with asking some simple questions about your individual preferences,” Ranta says.

Making checking accounts and apps work together

While there are reasons millennials need a checking account, it doesn’t mean they have to give up on the idea of using money management apps altogether.

“Using both a checking account and a financial app offers the security and digital benefits you seek when managing your finances,” McDermott says. “By hooking up a checking account to digital payment and budgeting apps, you can easily track your spending and ensure your money is secure, while enjoying the convenience of sending money online and splitting purchases.”

How millennials choose their checking account comes down to personal preference. At the end of the day, the most important thing to consider may be how easily you can coordinate your choice of checking account with your favorite money apps to manage your financial life on the go.

¹ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

Source: discover.com

March 5, 2021

4 Things to Consider Before Combining Finances With Your Significant Other

A joint account is a shared responsibility, so be sure you’re both on the same page.

The deeper into a relationship you get, the more important talking about money and combining finances with your significant other become. So romantic, right? But if you and your significant other decide to move in together, or get married, then a conversation about combining your finances is natural. A joint account is a shared responsibility, and—if something doesn’t work out—possibly one with lasting repercussions. Exhibit A: Nearly one-third of adults with partners say money is a major source of conflict in their relationship, according to a survey by the American Psychological Association.

Significant others talking about combining finances Even though you’ll be sharing with the person you love, there’s no need to rush into a joint bank account without getting on the same page. Make sure you and your partner have a deep conversation about your finances first so you know it’s the right choice. For both of you.

Not sure how to break the ice and talk money? Try these four topics to get the conversation going before combining finances with your significant other:

1. What’s the financial situation?

Most people don’t talk openly about the state of their finances, except perhaps with a financial professional. As relationships develop, however, it’s important to be realistic about both partners’ finances in order to establish equal footing. This is one time when you don’t want personal finances to be too personal.

Consider sharing your credit scores, and understand if either of you has debt that would be taken on by the other upon combining your finances. Discuss each other’s attitudes and willpower when it comes to spending—and saving. All of this can help give you a clearer view into how you may function together to manage your money. You may even learn a thing or two about your own financial approach in the process.

“Combining finances can even improve money management because it opens up the lines of communication between partners,” says Lauren Greutman, author of The Recovering Spender and founder of LaurenGreutman.com.

Nearly one-third of adults with partners say money is a major source of conflict in their relationship, according to a survey by the American Psychological Association.

2. Will you have joint and separate accounts?

Many couples choose to have shared accounts while maintaining individual ones. If you decide to open a joint account, think about whether you want to open just a checking account, or if a shared savings account meets your goals, too.

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With multiple accounts of any combination, it’s good to break down how each will be used. Know which accounts receive paycheck deposits, for example, and how the shared account will be funded. If a joint account is for shared bills (rent, utilities, food), decide how bills will be paid. Do both parties transfer money into the account to cover bills as needed, or is there an amount deposited automatically with each paycheck?

What about other joint expenses, like vacations? Will you fund your retirement with a joint account, or will you go solo on that venture? It’s best to get these questions answered before you combine finances with your significant other to avoid confusion or disagreement down the road.

3. Who manages the joint account and what are the “rules?”

If you choose to combine your finances and open a joint account, it’s important to discuss how it’s managed and by whom. Nobody loves rules, but establishing each person’s responsibilities with your joint account can go a long way toward avoiding future conflict.

Let’s say you open a joint checking account for shared bills. While you may both deposit money into the account, you could consider putting one person in charge of making sure those bills get paid. Maybe the other person is responsible for ensuring the balance statement is correct each month.

Additional rules can also help avoid unnecessary arguments and impulse purchases. Maybe you commit to discussing purchases when they are over a certain dollar amount.

“My wife and I set a limit each week on how much ‘spending’ money we each have for things we like to get ourselves,” says John Rampton, Founder and CEO of the online digital wallet, Due.com. “Giving each other an allowance means we cut out arguments on what we spend that money on.”

4. How will you deal with problems along the way?

Having a clear view into your joint finances doesn’t mean there won’t be hiccups here and there. It just means you may know about them sooner rather than later, and you’ll know how to address them with your partner. If, for example, you don’t have enough money in your account to cover bills, having a plan as a team can help.

“If your money is combined, you have to talk about it because of the risk of overdrafting the account, not having enough money and about future plans with where to spend the money,” Greutman says.

If you notice your joint account is trending low on funds, sit down and go over your joint budget. See if there are areas that can be adjusted. It might mean economizing where possible or increasing the amount going into the shared account. Either way, talking through the situation will help you come out ahead each month.

Communication is key

Combining finances with your significant other is a big step in any relationship. Even if you decide to keep your finances separate for now, you will have an easier time talking with your significant other about your financial needs. If you do decide to open a joint account, being able to communicate will allow you to pick an account that will help meet your shared goals.

Source: discover.com

March 5, 2021

Why College Students Need a Checking Account

Heading off to college? Here’s why you need a checking account.

During the transition from high school to college, financial responsibility becomes increasingly important. Tuition, living costs and other college expenses must be calculated and budgeted. Opening a checking account before the big move can make life a little easier.

Even if your parents are paying for the tuition costs, there may be times when you need your own money. You can carry small amounts of cash, but it is more convenient to have a checking account for living expenses; anything from lunch in the commons to a parking pass for the semester. Getting a checking account with a debit card allows you to quickly and conveniently pay for purchases almost anywhere.

College students buying lunch in the student union

Opening a checking account may be beneficial if you plan to have a part-time job while in school – you’ll need a place to deposit your paychecks, or you can set up direct deposit. You can also pay bills directly from your account. For example, you may be the roommate responsible for paying the utilities and having a checking account with online bill pay makes this process that much simpler.

College is a time when you learn to do more with less. People who learn to manage a bank account when they have limited funds available are more likely to manage their money well when they have a full-time job after graduation. It is a great time to learn about creating a budget and reconciling your account while you only have a small balance and a few bills.

College-aged woman looks at her checking account balance on her mobile phone

What to look for in a checking account

Many standard bank checking accounts have restrictions and fees to worry about. Some checking accounts may be more lenient and designed for those who have smaller balances. When considering the ideal account for college, you want to look for certain features.

Online/mobile banking

You may be busy with school activities, studying, working and having fun. You want to be able to check your balances, make purchases and pay bills when it is convenient. A bank that has online checking account access and a mobile app will be easier to use.

You can also make deposits and even find ATM locations with a mobile banking app. Need cash at the last minute before your night out and you have already left for the party? Just tap the mobile app on your smartphone and you’ll find the closest ATM around the corner from you.

Fees

While many checking accounts are advertised as having no fees, they may come with strings attached. Make sure you look past the sales pitch to see what it really means. Some accounts have no fee as long as you keep a minimum balance of a certain amount, have direct deposit, an automatic transfer from a savings or checking account or deposit a certain amount each month. If you are limited on the number of debits you can have in one month, find out the fee for going over the limit. Look for banks that offer checking accounts with no monthly fees.

College students walking to class

A checking account is a convenient and a wonderful introduction to independence and life on your own. If managed well, a checking account can help create a good financial foundation for the rest of your life. Just make sure you find the right product that fits your needs.

Source: discover.com

March 4, 2021

Why Choosing the Right Checking Account for Your Lifestyle Matters

As you grow financially, your checking account should be keeping pace with your needs.

Feeling stuck in a checking account rut? Turns out the right checking account for your lifestyle in your 20s may not be a perfect match in your 30s or 40s.

“It can be a mistake to keep the same checking account over the years because things in your life change and you might be missing out on certain benefits by not switching accounts,” says David Bakke, a personal finance expert at financial education site Money Crashers.

According to a survey conducted for Bankrate and MONEY Magazine, the average American adult uses the same primary checking account for about 16 years. While sticking with the same account may make you a loyal customer, as you get older, you may need to change your checking account through life stages.

What is the right checking account for my life stage? These tips can help you find the answer:

Banking in your 20s: Think convenience and cost

In your 20s, the right checking account for your life stage may be one that offers the easiest access to your money.

Forty-seven percent of millennials, for example, use mobile banking to match their active lifestyles, according to a joint survey by Jumio, a company specializing in online mobile payments and identity verification, and Javelin Strategy & Research. But the survey also reveals that young adults don’t want mobile banking to be over-complicated.

If you're in your 20s, the right checking account for your life stage may include mobile features and no maintenance fees.

“Many banks now offer mobile services,” says Michael E. Diamond, senior vice president and general manager of payments at Mitek, a mobile deposit technology company. “The quality and functionality of these features can vary greatly, however. It’s important to compare the user experience and features of mobile services offered by different financial institutions when considering where to bank.”

Checking account fees may also be a factor when choosing the right checking account for your lifestyle in your 20s.

“Minimal fees should be the first consideration for any 20-something looking for a checking account,” says Eric Patrick, founder of Black Market Exchange, an investment education and entrepreneurship site for young adults. “Saving is extremely important in your 20s because the sooner you start, the better, but hefty bank fees can impede your savings growth.”

If fees are a priority when trying to find the right checking account for your life stage in your 20s, consider opening an account with no monthly fees for maintenance, like Discover Cashback Debit. This account also allows you to earn 1% cash back on up to $3,000 in debit card purchases each month,¹ which is a nice perk if you’re a budget-conscious 20-something.

The average American adult uses the same primary checking account for about 16 years.

– Survey conducted for Bankrate and MONEY Magazine

Banking in your 30s: Focus on features

As you move into your 30s, planning your finances for your life stage may mean accounting for costs associated with new life events, like getting married, buying a home or growing your family.

“Getting married may cause you to want to have a joint checking account,” says Bakke, the personal finance expert from Money Crashers. “And if you’re going to start a family or buy a home, you might want to look for a checking account through a bank that offers financial and savings guidance for those goals.”

Kenneth Scott Perry, an aerospace project manager and baseball blogger, says major life changes have redefined what he needs most from a checking account.

In their early 30s, Perry and his wife bought their first home, purchased two new cars and had their first child, all of which had financial implications. With so many major financial considerations, he started focusing on checking account features like direct deposit for his paychecks, online bill pay services and overdraft protection. “These features, more so than in my 20s, are now very much what I consider to be necessary for the checking account I use at this stage in life.”

Banking in your 40s and 50s: Review your priorities

Planning your finances for your life stage means anticipating how your priorities will change as you get older. For instance, purchasing a second home, ramping up your retirement contributions or caring for aging parents may be on your radar during your 40s and 50s. The right checking account for your lifestyle is one that makes planning for these new scenarios as easy as possible.

When choosing the right checking account for your life stage in your 40s and 50s, you actually might want to consider what kind of savings products your bank offers to complement your checking account—and make sure that moving money into those accounts is both simple and secure. For example, you may want to be able to easily transfer money from your checking account to a savings account, certificate of deposit or IRA. When planning your finances for your life stage you can even explore setting up automatic transfers to different accounts so saving for your latest financial goals can happen on autopilot.

In your 40s and 50s, planning your finances for your life stage may mean finding a checking account that can be used with the right savings vehicles.

If providing care for your parents becomes a new component of planning your finances for your life stage, you may want to consider opening a joint checking account to help them with financial management and bill payment. You could also open a savings account that’s separate from your emergency fund to help cover any unexpected expenses associated with caregiving.

Don’t just set your checking account and forget it

Having the right checking account for your life stage means regularly assessing your financial needs and how well your checking account is meeting them.

“People tend to review their insurance coverage once each year,” says Diamond, from the mobile deposit technology company Mitek. “Checking account users might want to adopt a similar approach and review their banking options annually.”

If you reach a point where it’s necessary to switch your checking account through life stages, try to avoid costly mistakes.

“It can be a mistake to keep the same checking account over the years because things in your life change and you might be missing out on certain benefits by not switching accounts.”

– David Bakke, personal finance expert at Money Crashers

“When transitioning from an old account to a new one, make sure there isn’t a fee associated with the transfer,” Patrick says. “Make a point to get all the details before starting the process.”

If you find the right checking account for your lifestyle, give yourself time to move your checking account to a new bank. Remember to update your direct deposit information for your new account, as well as any recurring online bill payments or automatic transfers. And most importantly, take time to shop around and compare your options each time you assess your checking account through life stages to find the one that best suits your current banking needs.

¹ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

Source: discover.com

March 4, 2021

7 Crazy Simple Ways to Save Money With Your Checking Account

Learn how spending with your checking account can be the secret to building savings.

You might think of saving and spending as complete opposites. Money either comes into or out of your account. But when managed the right way, one can end up being the yin to the other’s yang. To get your saving and spending habits to complement each other, you only have to look as far as your checking account.

Richard D. Quinn, founder of personal finance blog Quinnscommentary, says the majority of Americans think they don’t have enough money to save—even when they do. “Virtually everyone can find money to save, and it’s not necessary to go through complicated budget calculations,” he says.

You can avoid the tricky number crunching and find ways to save money with your checking account by evaluating how you spend and taking advantage of features that can help you grow your savings.

Evaluating your spending and finding ways to earn rewards are two ways to save money with your checking account.

What are the best ways to save while using a checking account? Try these tips to save money with your checking account to build a cash cushion:

1. Pick the right checking account

Checking accounts aren’t created equal. If you’re looking for ways to save money with your checking account and are a frequent debit card user, consider picking an account that rewards you for your purchases.

Discover Cashback Debit, for example, allows you to earn 1% cash back on up to $3,000 in qualifying debit card purchases each month.¹ Maxing out your cashback earnings monthly could yield $360 in rewards annually. Deposit that cash into a high-yield savings account, and you’ve accelerated your savings just through smart spending.

If you’re all about rewards, one of the biggest tips to save money with your checking account is knowing the guidelines before you open your account.

“You need to understand your rewards program,” says Dave Rathmanner, vice president of content for LendEDU. “You need to know what the rewards are for, whether there are limits on the amount of rewards you can earn and how those rewards are earned.”

2. Sweep rewards to savings

When determining how to save money with a checking account, spend time upfront planning how—and when—you’ll use your rewards. Letting your cashback linger in your checking account could tempt you to spend or splurge, even if saving is your true goal.

“Think of your ability to earn cash back solely as a way to generate savings,” says Dan Wesley, founder of CreditLoan.com, a consumer finance education site and personal loan matching service. “Don’t allow yourself to spend your cashback.”

Easier said than done? Not if you set up an automatic transfer of your rewards from checking to savings as a way to save money with your checking account. Knowing how often cash rewards are credited to your account can help you put your savings on autopilot.

finances are combined with your significant other’s, encourage your partner to open a rewards checking account of his or her own. It can be an easy way to rack up more rewards—and more savings.

If you're looking for ways to save money with your checking account, you and your partner can each have your own account to maximize your rewards.

For added rewards earning power, you could consider using a cashback rewards credit card to cover purchases once you hit your checking account rewards earning limit for the month. Just remember, if you’re using credit to earn cash back, charge only what you can afford to pay off in full to avoid paying interest.

4. Match reward spending to your budget

Earning cash back on debit card purchases can jump-start your savings, but you still have to be mindful of what you’re spending if you want to learn how to save money with a checking account.

“You need to consider whether what you have to do to earn rewards will be financially worth it in the long run,” Rathmanner says. “There’s no point in spending an extra $100 at the grocery store to earn cash back if you aren’t actually going to use everything you’re buying.”

Wondering how to save money with a checking account? Create a budget that allows for spending and saving.

5. Pay yourself the way you pay your bills

One of the secrets of how to save money with a checking account is to create a budget for how you’ll spend your income each month. While your budget should include room for your regular expenses—rent, bills, food and transportation—it should also include a line item for the cash you want to save. Otherwise, you may find the months come and go with everything in your checking account spent.

“If you pay it like a bill, saving becomes much easier,” Wesley says. “And if you don’t spend as much as you budgeted for, avoid splurging with the extra cash and just save it instead.”

6. Automate your savings

Quinn says the key to saving is sticking to it and avoiding excuses for not saving. That’s why automating your finances is one of the best ways to save money with your checking account, he adds. With automation, you don’t have to remember to move money over to savings, nor will you be tempted by untouched funds that are sitting around in your checking account.

Start automating your finances by linking your checking account to your savings account and scheduling a recurring transfer each payday.

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You can also set up automatic transfers from checking to other types of savings vehicles, like an Individual Retirement Account (IRA), certificate of deposit (CD) or 529 college savings plan.

7. Start a savings challenge

Budgeting and automating are straightforward ways to save money with your checking account, but you could also boost your savings by challenging yourself with a little creativity. Mentally round up debit card transactions to the next ten-dollar increment, for example, and roll the difference into savings. If you spend $42.38 with your debit card on groceries, round up to $50.00 and put the other $7.62 into savings.

To do this, log in to online or mobile banking to check debit transactions daily or weekly, and add up the ‘rounded’ amount to be transferred to savings. You could also find an app to help you manage your money that rounds up your debit transactions and automatically moves money into savings for you.

Another tip to save money with your checking account is to treat savings as a reward for sticking to your budget. If eating out is your personal budgeting Achilles heel, for instance, put the money you’d normally spend on takeout or dinner with friends into savings each time you’re able to resist the temptation to spend on meals out. Seeing your savings account balance grow can be an excellent motivator to stick with the savings habit (welcome to the life of a frugal foodie!).

Maintain your savings momentum

Figuring out how to save money with a checking account is the first step toward growing your savings. The second is making sure that you’re saving consistently. Setting some savings goals can give you a reason to stay the course.

When setting goals, remember to be specific about what you’re saving for, whether it’s a vacation, a new car or some rainy day cash for your emergency fund. Choose goals that are realistic, and give yourself a time frame for reaching them. Putting these tips to save money with your checking account into practice regularly could bring a big financial payoff over time.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.

Source: discover.com

1. You earn cash back easily

2. You may be less likely to overspend

3. It could help you stick to a budget

4. You get the perks of online and mobile banking

Compare rewards checking account benefits

Do you need regular access to your funds?

How much are you looking to deposit?

Should you use both a checking and savings account?

Take full advantage of your new account

If: You use a checking accountThen: Consider a rewards checking account

If: You use a traditional savings accountThen: Consider an online savings account

If: You have a money market accountThen: Consider a certificate of deposit (CD)

If: You use a 401(k)Then: Consider an Individual Retirement Account (IRA)

Where should I keep my money?

1. Monitor your spending

2. Remove the temptation to overspend

3. Let debit and savings work together

Spend less money with a debit card

1. Account fees

2. Incentives

3. Convenience

4. Customer service

Choosing the right checking account

What checking accounts do that apps can’t

Choosing a checking account

Making checking accounts and apps work together

1. What’s the financial situation?

2. Will you have joint and separate accounts?

3. Who manages the joint account and what are the “rules?”

4. How will you deal with problems along the way?

Communication is key

What to look for in a checking account

Online/mobile banking

Fees

Banking in your 20s: Think convenience and cost

Banking in your 30s: Focus on features

Banking in your 40s and 50s: Review your priorities

Don’t just set your checking account and forget it

1. Pick the right checking account

2. Sweep rewards to savings

4. Match reward spending to your budget

5. Pay yourself the way you pay your bills

6. Automate your savings

7. Start a savings challenge

Maintain your savings momentum

If: You use a checking account
Then: Consider a rewards checking account

If: You use a traditional savings account
Then: Consider an online savings account

If: You have a money market account
Then: Consider a certificate of deposit (CD)

If: You use a 401(k)
Then: Consider an Individual Retirement Account (IRA)