Bronck wrote:jetissent wrote:Bronck wrote:Wanted to get your guys' wisdom:
opening up a bank account with TD Bank when I move. Any point in getting a savings account? or is a checking account good enough? It's a $250 minimum for the account and it obviously has little to no interest. Is there some advantage/need for a savings account?
I have TD, their interest rate really blows but I'd open both anyway. The practical benefit is that if your debt card is ever stolen/lost they only have access to the money you have in your checking (assuming they don't have your pin as well). They have a smartphone app you can use to easily transfer back and forth between the two accounts so there isn't really a reason not to use the savings account IMO.
Good point. Some added security is always nice.
Yeah, I did a lot of research and it seems like everyone says TD is the best in NY. Chase has more locations, but TD has better hours and better customer service. I don't really expect great interest rates from banks anymore, that's what the stock market is for! haha
Ya, interest rates shouldn't enter the equation when you're opening a bank account. I personally have a savings account because it keeps me disciplined (can only withdraw/transfer 3 times in a month before getting hit with fees and I hate fees) while affording me some liquidity. I know that if all my money was in checking, I'd run through it way too fast and it gives me peace of mind to have that savings buffer. I keep the bulk of money in a brokerage account and my old 401k, so that I can see some returns (although with this year's market volatility it hasn't been great), but having some money in the savings account is good because it's more liquid than stock. Depending on how much money you have I would consider opening one.
ETA: Obviously go for the best interest rate you can get, but realize that any savings account will return below inflation, especially in an environment like the current one where the Fed is expanding the money supply to ease the recession