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My bank hounded me till I took my savings out of my checking and opened a money market. I used to use a debit card with the account and that was putting too much at risk. Now I rarely use the money market account, and I quit using the debit card too. It's all a little safer that way. Now if I could only get the bank to give me some interest on these accounts....
Last month i opened an checking/savings accounts. I`ve recently received some docs. from the bank. There was a W8-BEN form for filling. Should i fill it out if i`m not a USA resident? Can i fill it out later (in 4-5 months)?
I found out that form is for IRS. But why IRS wanted to know something of my accounts? I just wanna keep my money and don`t have any interest from the bank..
Why would anyone need 6+ debits per month from a savings account? Doesn't that kind of defeat the purpose of having one? The whole point of a savings account is to save money. Not spend it. You put money away and don't touch it for a long time.
For daily banking and debit transactions you should use a checking account. This is the account you deposit your paycheck into, pay bills from, and spend from. You keep enough cash in the checking account to cover daily spending and current monthly bills. Anything extra can be moved into the savings account.
If you are constantly having to withdraw money from a savings account to fund your lifestyle, then either you are spending way too much or not handling your finances properly. In my opinion you should not have an ATM/Debit card tied to your savings account. It only increases the odds of theft or that you will spend out of it.
In my opinion you should not have an ATM/Debit card tied to your savings account. It only increases the odds of theft or that you will spend out of it.
Yup! I hid the card under the pillow as fast as i could) I was thinking about to cut it off but i`ve changed my mind.
In my opinion you should not have an ATM/Debit card tied to your savings account. It only increases the odds of theft or that you will spend out of it.
Yup! I hid the card under the pillow as fast as i could) I was thinking about to cut it off but i`ve changed my mind.
Why not just cut it up with scissors? Or cancel it with the bank? Why does one need an ATM card for a savings account? Money can easily be transferred between accounts today with mobile apps and online banking. Why put your savings at risk to be cleaned out? Makes no sense to me.
As others have mentioned, you can only withdraw money, using certain means, from a savings account six times per month. The purpose of this is to keep some part of the money supply locked away in less liquid accounts so that money may be drawn upon to meet withdrawal demands from a bank's customers. Since a bank lends out more money than it has in its vaults, it needs to maintain confidence and prevent bank runs. The six withdrawal limit is one way to keep a cash buffer to prevent bank runs.
Technically, the Federal Reserve defines at least two kinds of money supply. The M1 definition includes cash, checking accounts, and some other liquid forms of money. The M2 definition includes savings accounts and other more illiquid forms of money. From the government's perspective, checking and savings accounts are different types of money, although they are very fungible.
Banks typically charge higher fees to maintain a checking account or demand direct deposit to waive fees, to balance out the higher transaction costs of a checking account. The bank can also use more of your money in a savings account than in a checking account towards its federal reserve requirements. This is why banks want people to keep more of their money in a savings account, or rather not use a checking account as a savings account. Banks also like the overdraft fees that come from checking accounts, but if you are a saver type of customer the bank would prefer it if you saved in a savings account.
As others have mentioned, you can only withdraw money, using certain means, from a savings account six times per month. The purpose of this is to keep some part of the money supply locked away in less liquid accounts so that money may be drawn upon to meet withdrawal demands from a bank's customers. Since a bank lends out more money than it has in its vaults, it needs to maintain confidence and prevent bank runs. The six withdrawal limit is one way to keep a cash buffer to prevent bank runs.
In the days of normal interest rates, there used to be an actual difference which was fairly significant to how much your money earned. Now, other than what the above poster said, they are more or less indistinguishable. A savings account with a normal bank is basically slightly less liquid checking account.
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