We talk a lot about how to save money on here. But one thing we’ve never talked about is where we keep our money. We’ve had a few questions on just this topic recently, and as it always is with us, if you ask, you shall receive much more than you asked for in the first place. Yup, oversharing is about to happen. So here’s some info on where we keep our dough.
At Ally, our main bank, we have three separate accounts, which all serve different purposes. We use Ally because it has some of the best interest rates, as abysmal as they still might be. Ally also waives all ATM fees, which makes it easy and convenient and makes up for the lack of a brick and mortar location. And we’ve had mostly good experiences with Ally.
- Checking: We use our checking account for all of our day-to-day expenses, including paying down our credit cards each month. Our checking account usually holds a little more than a month’s worth of our budgeted expenses at any given moment.
- Money Market: Our money market account is where we keep our future-house fund, as well as our general savings and emergency fund. In other words, the majority of our money that isn’t invested is in this account. While we mentioned in Monday’s post that we think of a Roth as an emergency fund as well, to be clear, we have a separate emergency fund that stays in our money market account. We use a money market account over a savings account because we have access with our debit card, if necessary, and the interest rate is about the same as a savings account. It is pretty similar to a checking account, but we rarely need to transfer money into and out of it (since you can only do 6 transactions a month with that account).
- Savings: Our savings account doesn’t serve a purpose anymore. In the past, when Johnny was working as a freelance writer, we would auto-transfer money into that account each month to be used to pay our quarterly estimated taxes. But now that we’re not using it for anything specific, we don’t keep much money in it.
Chase Checking Account
We use Chase because we used to use WaMu, which then became Chase. And it was convenient when we lived in the cash-only-mecca NYC since their banks are everywhere out there. It’s also nice that we still have access to a brick-and-mortar bank in the event that we ever need cash fast. But we keep this account open mostly as a formality and don’t keep much money in it.
Currently, I have a 403b, which we contribute to up to the employer match. We also have our Roth IRAs, which we have through Vanguard. Johnny doesn’t currently contribute to a 401k, but later this year, we’ll either contribute to his employer’s 0% match 401k or a traditional IRA. We also have a general investment and a Roth IRA account at Sharebuilder, which was rolled over from Johnny’s previous employer’s 401k.
So those are the deets on where we keep our dollars. Now that we’ve written all of it out, that’s not as simple as we thought it was, but it works for us. Any other questions? Are any of you out there banking buddy’s with us? Tomorrow’s post will list our usernames and passwords, so stay tuned! 😉