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Splitting your income into seperate accounts?

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plugilir
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Splitting your income into seperate accounts?  Reply with quote  

Alright so im very new to banking and just want to clear up a few questions. I've been told its good to have more then one bank account because it protects your money better because if something goes wrong with one account you have the other accounts still safe. Now lets say i make around 250 every 2 weeks. If i had 3 bank accounts which had a checking and savings in each how would I split this money to every account. Ive also noticed that accounts have monthly maintenance fees which you can avoid by meeting certain requirements (ex: having at least one qualifying direct deposit of $250 or more made to your account each statement cycle). If im only making a small amount of money every 2 weeks how can i meet each banks requirements so that i dont get money taken away from me?

Id also like to start applying for credit cards and if i got more then one credit card what would be a good way to manage them. Would i use one card for stuff like gas, another for wants like food, products at stores, and another for maybe online purchases? Or do I just pick one at random each time i make a purchase to use?

I also dont understand APR and APY very much and I would like to know how i can put my money to work in my savings. Like put in a certain amount of money and have it build with interest. How does this work.

Ive had a bank account for like 2 years so im not completely new to banks but im trying to learn more so i can take advantage of all the benifits there are out there and make money and manage money better.

Thanks

Jeremy
Post Wed Mar 07, 2012 8:38 pm
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cashdoctors
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One of the best ways to make your money work for you is by having a bank account that you get paid in to - and another that is a high interest savings account.

Choose a bank account that suits your everyday needs. Have your income put in this account.

Budget how much money you can save each week after all your expenses have been paid.

Set up a direct debit for that weekly/monthly savings amount to go in to a high interest savings account. There are some great accounts available that don't charge you any fees and offer around 5% interest rates.

Credit cards are best used in an emergency. If you set up this direct debit into a high interest savings account you will soon have cash ready for emergency situations, which means you can avoid using a credit card.
Post Thu Mar 08, 2012 12:43 am
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coaster
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There are no "high interest" savings accounts in the U.S. The best savings account interest rate listed on bankrate.com is 0.91% at Everbank.

You can set up automatic account transfers, but check with the bank to make sure the type of transfer is qualifying for the fee waiver. At one of my banks I got nicked once because they interpret the automatic deposit fee waiver to apply only to automatic deposits of employer wages. ACH transfers from another account didn't qualify.

~Tim~
Post Thu Mar 08, 2012 2:41 am
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coaster
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mod's note  Reply with quote  

This is a duplicate thread that I didn't discover until after posting to it. The thread with the most activity is here:

http://www.money-talk.org/thread20364.html

and this thread is closed

~Tim~
Post Thu Mar 08, 2012 5:20 am
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