What You Should Expect from Your Bank Accounts
So here's what you should expect first. No over the top fees again for profit institutions, I get it. But I do feel like there's a difference between gouging and just having a little bit of money, but you should never have to be paying a monthly maintenance fee in order to get access to a checking account. And I say that because there are a ton of options where you don't, so if you're currently paying that you're going to ditch that bank and switch to something else or you're not paying a monthly maintenance fee, definitely no minimum account balance. Again, who is this targeting? It is not targeting people with a lot of money. It's targeting people who don't and those are people for whom 10 $12 a month does make a significant difference in their budget. So coming back to this idea of respect, I want you to not have an overdraft protection fee to not have to pay money to move your own money from savings to checking. Now this one to a lot of people are just so used to paying a. T. M. Fe...
es that we don't really think about it. But there are actually options where you are not charged by your own bank to use another bank's A. T. M. And on top of that they will reimburse you for the fact that this other bank is going to have charged you a fee. So these banks exist. We're going to get into where they are and how you can find them. Um Now some of them have a cap and say, hey, we're gonna reimburse you up to $9 or $15 a month. Others have unlimited reimbursement. Some are domestic, some do internationally. So depending on how often you actually go to an A. T. M. And what kind of traveler you are. That also should be informing which bank account you're picking. And then Also I want um actual savings. I think your goal in life should be to be earning at least 1%. Those who are older than the millennial generation. Remember a time where savings accounts gave you a whole heck of a lot more than that. There's all of this talk about 5% and 8% way back in the day, But for us 1% is a really good baseline to be thinking about. That's something that is very feasible. You can definitely get access to this. So where are these magical accounts that I've been talking about? These are internet only banks that typically offer the most competitive rates. Sometimes you'll hear them be referred to as online banks. I like to say internet only because online kind of sounds like, well any bank, it now really does have an online presence. So that can get confusing internet only banks or banks that typically do not have any brick and mortar locations or if they do, there's only one or two in the entire country, there are very few of them. And so they're essentially putting all of that savings from not having to pay property taxes and to build a building and keep the lights on and pay the employees. That's money that's really going back into your pocket as a customer of the bank. So they exist more or less entirely online. They are safe. They are insured. We will be getting into that shortly. Now. Some actual options just to give you a sense include Ally, Usa, Capital 13 Charles Schwab. Now there's one group that this is not a magical account for and that's people who deal primarily in cash. That is one problem with the internet, only banking and that's that it's very difficult then to deposit cash because there's not a physical location for you to go to. But what you could do is have a checking account perhaps at a bank or a credit union in your community where you know, you can go and deposit the bank or you can go and deposit the cash and then you can have a savings account with one of these guys that has a much more competitive interest rate. Just something to think about is options one you always want to make sure that any bank that you're using is F. D. I. C. Insured F. D. I. C. Stands for federal deposit insurance corporation. It is an independent agency of the United States government. So the F. D. I. C. Now is basically insurance policy for the bank. So if your bank fails, Your money is insured by the federal government up to $250,000. Now it doesn't mean you get $250,000 if your bank fails, it means that the amount of money you have in there up to is what you get. So if you have a million dollars in savings you actually might want to put them around to different banks. So you have insurance policies across your money. Just something to think about once we get so far out of the broke millennial phase where that kind of money. Another way is to just do a simple google search and check for scams, put the name of your bank on the word scam in and see what comes up. Ask friends and family members, what do they use? What's your experience been? How did they like it? Reddit tends to be a really good forum to for sniffing out anything like this. People are certainly very vocal about any negative experiences they've had and talking about scams as well. And those are ways you can make sure it's safe. But again, only ever bank with an institution if we're talking about american banking products that is F. D. I. C. Insured