Banking
Banking is at the core of your personal finances. We all need checking accounts to give us FDIC insured access to our liquid funds. We also need access to savings accounts and CDs if we want to see our short-term savings grow at a rate close to inflation.
With the advent of the high-yield savings accounts, I’ve personally seen many more people getting excited about saving their money. It’s great! The savings account is a great place to house your emergency fund, or money you’re saving up for a short-term goal like going on a vacation or buying a home.
When it comes to dealing with banks, I like mine to be free of annoying fees and requirements. It’s getting harder and harder these days to find banks who will shoot straight with you. I’ve recently converted my checking to one of the free online checking accounts. These days you don’t need a physical branch, so it makes sense to move most of your banking online.
My advice on banking is to keep in mind that you’re not investing with this money. Your main goals should be to keep the money safe (i.e. FDIC insured) and liquid (i.e. easy to access). After that, ensure that you’re not getting hosed with fees.
