Multiple Banking for Checking-Debit-ATM Accounts.
All Banks Are NOT Created Equal: and that’s a GOOD Thing!
This fall we are focusing on “Checking It Out,” by examining the various services provided at different bank branches. Banking and Checking accounts, like any business relationship,require trust. Before entrusting your income and electronic transactions to a bank, think about what services are actually available. Just as in any relationship, there will be benefits and challenges.
First, determine: What Specifics Are You Looking for in a Banking Relationship? These scenarios may remind you of specific needs you want to consider.
- I travel with my job and I want free nationwideATM.
- I work across time zones and need a 24/7customer service representative.
- I want free checking. Some of my clients require paper checks for payment.
- Most of my bills are payable online.
- I don’t want to pay any fees at all.
- I still need to be able to consult with a tellerfor some transactions.
- Can I get all these and still hope for some percentage of interest paid on my account balance?
Great question! Actually, local neighborhood banks andcredit unions have met the Big Name challenge for automated electronic banking privileges. In a personal, small town atmosphere there is great comfort inwalking into a local branch and theteller and even manager say, “Hi” and call you by name. You feel you can ask any question regarding your account or additional services, and they will provide a tailored solution just for you.
But, what? They don’t pay interest on your balance? As much as you crave the personal banking experience, All Banks can NOT be ALL Things to ALL People…for FREE!
So the answer is, take advantage of the benefits of eachbank and establish multiple accounts. This makes the most sense if one bank is offering interest on thebalance you maintain. Have your paycheck split and deposited separately intothe individual accounts, the larger amount going to the interest-paying account. This provides the online bill paying account from which you have scheduled monthly car, rent or mortgage drawn, or even be a type of savings you seldom touch.
Have the smaller amount deposited into the account you use for Debit withdrawals or occasional paper checks. This account would make it easy to deposit or withdraw personal checks, or transfer money to prevent overdraft for debit cards and checks. Ideally, your bank may provide overdraft insurance if you have a joint savings account.
More record keeping? Very possibly. At least, you will learn to think in compartments and bring better distinction to your Financial Spending Plan. Sometimes more IS better, especially if you have not been previously tracking your income. In the case of multiple banking accounts, you are ON PURPOSE designating funds to specific areas for your financial advantage. The greatest feeling you can experience in personal finance is knowing:
1. Who is providing Your income from various sources
2. What the amount of each income is
3. When that income is available to each account
4. Where your income is directed for savings or payment
5. Why it is going to specific compartments
6. How all income is being paid out or saved
7. WOW! That your money is finally working for you toward your Goal Powered Savings!
Final analysis? You are responsibly in charge of Every Dollar On Purpose!