Why I keep my money in a savings account instead of checking - Business Insider

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'I consider my savings accounts walled off from my checking and daily spending needs'

2. Fewer fees and minimum balance requirementsin the US are free, with no minimum balance and no recurring fees. Not all banks follow those guidelines, however.

And for checking accounts, the rules can be stringent. To qualify for free checking, you may have to keep a certain balance, use your debit card a minimum number of times per month, or jump through other hoops.Federal Reserve regulations limit savings accounts to six withdrawalsSome banks have minimum-balance rules to avoid a fee. If that's the case, you should consider switching to a bank that won't charge you to keep your money there.

. I save for property taxes and insurance in a dedicated high-yield savings account. I keep a little cash in other savings accounts for months when big bills come in or for other short-term financial goals.An emergency fund is one of the most important uses of a high-yield savings account., about 40% of Americans wouldn't be able to afford a $400 emergency with cash; 27% would have to borrow or sell something to come up with the money, and 12% said they couldn't cover it at all.

Medical bills, home repairs, and broken-down cars often cost well over $400, so that's just a baseline for comparison.in an emergency fund. For people who are self-employed or don't have a stable income, it's wise to double that, to six months' worth of expenses in savings where you can't easily touch it.or car or make any other major purchase, it's a good idea to save up for it first.

 

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'Growth,' that doesn't outpace inflation is not growth. Buy gold and silver.

Savers are losers

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