What kind of bank account for small savings?

[indymoney]

Hi,
Starting every month, we pull out money from our back account for clothing, travel, buying car and much more. We keep them in separate envelopes for each expense. Some accounts have $1000. I don't want to keep them in envelopes anymore. I'd like to know your suggestions on saving money. How do you save your money for these kind of expenses? Please let me know.

[Beach Bum]

I opened a savings account at a seperate bank than the one I normally bank at. This way I only take money out if I need it because I have to physically drive to one bank get the money out, then drive to the other bank and put the money in. I can't just transfer online or call and have them to. Hope this helps.

[Dengineer]

Originally Posted by Beach Bum I opened a savings account at a seperate bank than the one I normally bank at. This way I only take money out if I need it because I have to physically drive to one bank get the money out, then drive to the other bank and put the money in. I can't just transfer online or call and have them to. Hope this helps.

ITA! Great advice!

[manders13]

I actually put mine in an account that penalizes me for withdrawin (i set it up this way)
The intrest rate stinks, but hey.

[indymoney]

I'm sorry if I'm not clear. But I'm looking for information related to each small expenses. How to keep money separately for each expense and how to manage them?

[manders13]

Ok, i put them in an account and do a budget....

I always know down to a penny how much i have and what is due when.

When it comes to saving for certain things (like right now i'm saving to pay off my car, go on vacation and get my husbands headlight fixed) i keep the money in my savings. I then prioritize which comes first. (honestly right now the vacation is numero uno lol!) Then once i feel im at a comforte "zone" i will withdrawl to do #1 (which i am hoping is about Sept 2010)


Does that help answer your question?


If your asking should i open several accounts, i wouldnt. You just have to have discipline enough not to touch the money and know what you want to do with it. Leaving it in envelopes isn't a good idea. What if your house gets robbed or burns down? bye bye to savings

[scissorbill]

I have an ING orange savings account. I got $10 for opening it and there are no fees. I can deposit money online and it's very convenient.

[Sculpture Widow]

Originally Posted by scissorbill I have an ING orange savings account. I got $10 for opening it and there are no fees. I can deposit money online and it's very convenient.

I have used ING before for a small savings account and for a CD. They were VERY easy to work with (and would use them again if I had money to save).
I notice they run specials every now and then......like the pp stated. I think once I saw them offering $25 for opening an account.

[terrortoys]

Not sure of your area.. I would recommend US Bank, we have the START program if you are in a package their are no fees and you are eligible for up to $100 in visa gift cards..

Or Bank of America's keep the change..

[MaryMary]

Originally Posted by indymoney I'm sorry if I'm not clear. But I'm looking for information related to each small expenses. How to keep money separately for each expense and how to manage them?

It wouldn't be feasible to have a separate accounnt for each and every expence, provided you have at least 5-6 items.
Try to keep your fixed expences (phone, mortgage, electric, taxes, sewer, water, loan payments) from variables: travel, clothes, groceries, etc. I include groceries in variables because I do not spend set amount per week, depend on store sales and my needs this specific week. If you allow set amount for groiceries you better include it in fixed expences account.

For fixed expences I like paying online or have direct withdrawal. It's quick, have a trail and in most instances free.
for your variables you want to have an account with unlimited free ATM withdrawals/debit and wide network of machines, if the store takes cash only. I like credit card, but if you do not have a very tight grip on your spending you better have cash or debit card linked to that specific account.