VikingsGuy
Well-known member
I hear you, but the reality is they sell you a service to you and you either buy or you don’t.
Savings accounts
- Thread starter std7mag
- Start date
I hear you, but the reality is they sell you a service to you and you either buy or you don’t.
BigHornRam
Well-known member
A bank with no deposits doesn't stay in business for long. Doesn't hurt to inform them of this. Sometimes they listen. My bank did.
VikingsGuy
Well-known member
I agree - if you sell a service and no customers buy you are out of business. I was just reacting to the old saw that the bank is “working for you”. Banks, mortgage companies, social media companies, etc - they work for themselves, not for you. To the extent they make you happy, they do so because your return business makes them money.
BigHornRam
Well-known member
Working for me means they work for my business. Competition provides choices. Lot of banks out there if you hadn't noticed.
VikingsGuy
Well-known member
We agree
nuevo_eph
Active member
Another online bank not mentioned is CIT Bank (2.45%), which I use. I absolutely agree with the recent longer post that this type of account should be used for the 3 to 6-month fund, not the emergency savings fund. My wife and I plan to build ours up as I realize we have been so aggressive in saving in 401ks and IRAs that we don't have much cash for big-ticket items (new roof, HVAC, etc) or won't have much access to cash for living expenses if we retire early. While retiring early would be a nice problem to have, we're working on building that up this reserve through the online savings account.
std7mag
Well-known member
Wow! Taking this all in is thought provoking!
Reason for savings account is for the sudden, unexpected expenses. Car repair, medical, etc...
We both put money each payday into the account. Direct deposit.
We are both maxed out to our employers 401K match, with a couple added percentage points.
She claims to like the security that there is a vault full of cash, when she goes to the bank. Not taking into account that our "funds" are electronically deposited. Also as she sits and pays our bills online.
Anotherr issue we both have is the hours of business the credit union is open.
Having gotten a new job further away, the gas for my truck is less than reasonable. 12.3 mpg. We have been looking towards a car. Not only to at least double the fuel milage, but one for taking trips with. (PA to FL, PA to Toronto)
Figured a slight car payment would equal amount spent on gas in truck in a months time.
Credit union wanted 6.49% for a car loan.
Wife wasn't happy with my response to that!
I calmed down, and told them that was fine under one condition. They pay 3% on our savings account.
Talk about deer in the headlights look!
They didn't agree with my terms.
Reason for savings account is for the sudden, unexpected expenses. Car repair, medical, etc...
We both put money each payday into the account. Direct deposit.
We are both maxed out to our employers 401K match, with a couple added percentage points.
She claims to like the security that there is a vault full of cash, when she goes to the bank. Not taking into account that our "funds" are electronically deposited. Also as she sits and pays our bills online.
Anotherr issue we both have is the hours of business the credit union is open.
Having gotten a new job further away, the gas for my truck is less than reasonable. 12.3 mpg. We have been looking towards a car. Not only to at least double the fuel milage, but one for taking trips with. (PA to FL, PA to Toronto)
Figured a slight car payment would equal amount spent on gas in truck in a months time.
Credit union wanted 6.49% for a car loan.
Wife wasn't happy with my response to that!
I calmed down, and told them that was fine under one condition. They pay 3% on our savings account.
Talk about deer in the headlights look!
They didn't agree with my terms.
Pucky Freak
Well-known member
Actually, the bank does not have a vault of cash (from you comment, I know you get this). They have a small safe that holds a few tens of thousands of dollars for daily transactions. The millions of dollars that are in people's accounts are just theoretical dollars on a computer database.
D
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LaSportsman
Well-known member
On letting the bank use my money for free, I prefer to look at it as they provide me a service for free. I keep 2-3 months expenses in an interest bearing checking account. The interest is peanuts. It's so low I don't know and I'm not going to bother to look it up.
But, I have no fees for online bill pay or ATM use including out of network. They manage electronic transactions for me and to get use my money. Fair deal.
Beyond that, money is in a taxable brokerage account with money market or stocks or in retirement accounts. I have no intent on making money from my 3 months savings which is OPs perspective as well as I read it.
But, I have no fees for online bill pay or ATM use including out of network. They manage electronic transactions for me and to get use my money. Fair deal.
Beyond that, money is in a taxable brokerage account with money market or stocks or in retirement accounts. I have no intent on making money from my 3 months savings which is OPs perspective as well as I read it.
