Just recently I set up a new checking account at ING DIRECT and restructured my entire bank account system.

The Old Setup

Checking Account with Bank of America – Both paychecks were direct deposited into this account. All automated bill withdrawals were made from this account. BOA bill pay was used to pay bills not on automated withdrawal. Checks were written from this account for all bills not automatically withdrawn or paid with bill pay. This account was also used to pay any day-to-day expenses (meals, entertainment, etc…).

Savings Account with Bank of America – The minimum amount was maintained in this account ($300) so no fees would be incurred. This account was occasionally used for short term savings goals. However, no more that a few hundred was ever kept here. Why? Because the interest earned was less than 0.50%. Not good.

Orange Savings Account with ING DIRECT – Since the summer of 2006 we used this account to hold our emergency fund and house down payment savings (two different sub-accounts were used). We didn’t use the automated savings plan available but we ended up putting a significant sum in this account every month. Interest earned during this time period was around $800.

The New Setup (shown above)

Checking Account with Bank of America – Under the new system, I’m using this account strictly to pay bills. I’ve got one pay check being direct deposited into this account, and I’m paying all bills from this account either using automated withdrawal or BOA’s excellent and FREE bill pay. The paycheck that’s deposited into this account just happens to cover my monthly bills with enough cushion to protect me against any unexpected upswings in the variable bills (i.e. energy bill).

Savings Account with Bank of America – The use of this account has not changed. It’s still holding the $300 (avoiding the fees) and earning less than 0.50% interest.

Electric Orange Checking Account with ING DIRECT – This is the new account I set up. This account will now be receiving funds from 50% of one of the pay checks. It also comes with a debit/credit card. Therefore, it will be used to cover any day-to-day expenses (meals, entertainment, etc…). This account will earn around 3.25% interest and be directly connected to the ING DIRECT Orange Savings account, which is handy for quickly accessing our savings, via a transfer and subsequent credit/debit card use at an ATM.

Orange Savings Account with ING DIRECT – This is where the other 50% of one of the paychecks is going. Again, I’m earning the most interest on this money, so the goal is to have more in here.

This new system now has me setup to get the most from my bank accounts.

Related posts:

1. The Main Goals of My New Bank Account Setup
2. New Ways to Avoid Bank Overdraft Fees
3. How to Setup Multiple Savings Accounts at ING DIRECT
4. ING DIRECT’s Electric Orange Account: My Review
5. ING DIRECT is Lowering Rates