Free Ebook.


Enter your email address:

Delivered by FeedBurner

« Builders Taking a Hit in Michigan | Main | Another Vote for Index Funds »

August 02, 2007

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

My new checking account that I recently opened is free but has NO interest. That's right, 0%. And I'm happy with that.

My savings account with them has 5.25% interest guaranteed through the end of the year. So I have a brick and mortar account with online access, a higher interest rate than online banks, and I can transfer (and schedule transfers) to my checking account the same day instead of having to have my money in limbo for 2-4 days.

I'm pretty happy with the arrangement. No minimum balances, no direct deposit required (my direct deposit that I set up actually goes straight to savings), just no interest on the $100 or so I keep in there. Any time I need to write a check out or use bill pay, I transfer the money in that morning.

A no-fee, 0% interest checking account is the same as one that charges a 3% annual fee (if you assume that inflation is ~3%).

Try joining a credit union. Most credit unions don't charge any fees for their checking accounts. However, mine require direct deposit in order to get free checks, but there are no fees.

"A no-fee, 0% interest checking account is the same as one that charges a 3% annual fee (if you assume that inflation is ~3%)."

What?!? No. It has NOTHING to do with inflation. Inflation is a negative factor, but it isn't like you can avoid inflation by paying a checking account fee. Deposit $100 into each of those accounts. In one year, you have $100 in the first one, and $97 in the other. $100>$97.

The comments to this entry are closed.

Start a Blog


Disclaimer


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.

Stats