General

[quote=TrueAtheist]A TFSA (Tax Free Savings Account) is the way to go if you want to set up a savings account, an ordinary savings account is pretty pointless in my opinion.

I agree with you though, I never understood at all the logic or point behind having 2 accounts, one for "savings" and one for your everyday needs. People make the argument that you should just spend the money in your checkings while saving the money in your savings.. But you can still withdraw money from your savings at any time so this doesn't make sense lol. I have a TFSA that my friend who's a financial advisor forced me to set up but I honestly prefer just having a checkings account because I like to see one big number in my bank rather than have it divided up. Just because I have easy access to my money doesn't mean I go around spending it.. The interest on a savings account is so tiny that it doesn't matter at all to me.[/quote]

This. Exactly this.
I like to feel rich for a while before blowing those bills on them hoes

A TFSA (Tax Free Savings Account) is the way to go if you want to set up a savings account, an ordinary savings account is pretty pointless in my opinion.

I agree with you though, I never understood at all the logic or point behind having 2 accounts, one for "savings" and one for your everyday needs. People make the argument that you should just spend the money in your checkings while saving the money in your savings.. But you can still withdraw money from your savings at any time so this doesn't make sense lol. I have a TFSA that my friend who's a financial advisor forced me to set up but I honestly prefer just having a checkings account because I like to see one big number in my bank rather than have it divided up. Just because I have easy access to my money doesn't mean I go around spending it.. The interest on a savings account is so tiny that it doesn't matter at all to me.

@NoobCake: Yes, but that's what probably 70% of people think when they have a credit card. I'm saying, beware of credit cards.

[quote=LostMyJob]its time to move kahl [/quote]

are you offering me a place to stay?

[quote=xylyls]apparently if you sign up for an account with westpac new zealand, they open their accounts with 3-4% interest. thinking about finding a way to set up an account there. just need a valid NZ address[/quote]

its time to move kahl

[quote=NoobCake]I use a credit card and have a good credit score at the moment...please go on, I'd like to learn more about this.
I don't have $1000 I can simply use yet though...cause I keep spending it [/quote]
play around with stocks and options on investopedia to learn how the market works or find an index fund and put your money into it.

[quote=fradddd]"Credit card": I have a $5000 limit and I make $500 a month. So I can spend $5000 a month.[/quote]

That doesn't work. If you spend $5000 in one month and only pay $500 of it, you owe the bank $4500+interest, so you'll probably only have like $300 left on the balance for the next month.

"Credit card": I have a $5000 limit and I make $500 a month. So I can spend $5000 a month.

[quote=Phong128992]Exactly as eclipiptic or w/evs said. I'd understand if you were scared of investing. However you could have made more with no problems through investing in like an index fund or through lending club. Heck I was able to use $3,000 as a startup to make over $11,000 of profit and like $40,000 in sales in a matter of 20 months through a business I started. (pretax). I think people now a days need to start investing/using credit early etc. Like get a credit card and build credit early, invest in your ira early. The earlier you do your research the better off you'll be. Why leave your money in a bank when you can use "safe methods" to make more money? I.e. buying disney stock. Heck it hasn't basically had a major decrease in years and it keeps going up. I know tons of people who make 5-10% profit a year on LendingClub no problem (all because they did their research).[/quote]

I use a credit card and have a good credit score at the moment...please go on, I'd like to learn more about this.
I don't have $1000 I can simply use yet though...cause I keep spending it

[quote=Gyroscope]Interest income brah. I made $200 on interest last year from just having like $10k in my savings account.[/quote]

Exactly as eclipiptic or w/evs said. I'd understand if you were scared of investing. However you could have made more with no problems through investing in like an index fund or through lending club. Heck I was able to use $3,000 as a startup to make over $11,000 of profit and like $40,000 in sales in a matter of 20 months through a business I started. (pretax). I think people now a days need to start investing/using credit early etc. Like get a credit card and build credit early, invest in your ira early. The earlier you do your research the better off you'll be. Why leave your money in a bank when you can use "safe methods" to make more money? I.e. buying disney stock. Heck it hasn't basically had a major decrease in years and it keeps going up. I know tons of people who make 5-10% profit a year on LendingClub no problem (all because they did their research).

beware of banks
keep your money in the form of gold or precious metals or
mesos

[quote=lettucing]my checking account has a 2% interest rate on up to $25,000, as long as you make 10 credit transactions per month and have direct deposit. can't even find a savings account with that.[/quote]

apparently if you sign up for an account with westpac new zealand, they open their accounts with 3-4% interest. thinking about finding a way to set up an account there. just need a valid NZ address

[quote=Gyroscope]Interest income brah. I made $200 on interest last year from just having like $10k in my savings account.[/quote]
If you dumped that into an S&P fund you would have made ~$1500. Better to invest.

because why not? o.o
1) I get interest for my savings account, not checking
2) Why would I ever need more than 2-3k in my checking? I just need enough to pay my bills. The rest can stay in my savings, collect interest, and gives me a sense of financial security
3) It's free to open a savings account, you get interest, so again, why not?
4) It's also a mental thing. To me, my checking account is disposable income that goes towards everything I need to live. Savings is for big things like paying off my student loans or buying a car.

Well it's to save your money duh. Checking is money readily available to you so you can use your debt card to withdraw when you need it for things like groceries, bills, ect. The savings account has to be manually withdrawn from, making it a pain in the ass to get the money out quickly so it discourages you from using it. If and when something happens such as emergencies or events like Black Friday come up, you'll guarantee you'll have money available for such things. I'm guessing you're young like most of us, but eventually you will come across moments in time you will deeply regret not having money saved.
Smart people have their own system for savings accounts such as taking a set percentage out of your paychecks that go into your savings and whatnot. Personally I always keep $300 in my checking account maximum at the start of each week for necessities like bills and gas money with some extra money and the rest I have the OPTION to use (not a big spender personally). Everything else from my paychecks that exceeds my $300 limit goes into my checking. So in the end since I don't use that much money at all on necessities yet, most of my paychecks go into savings.

People who use their savings accounts for the interest are:
A) Young and don't have a job yet so their parents put a set amount in that should increase a tiny bit over the years for things like College
B) Very wealthy and can make a decent amount of money off their interest rates due to having a lot of funds
C) Not very bright because with low funds, interest rates are insignificant on Lower/Middle class budgets

its essentially for life's unexpected moments.

A savings account is pretty useful, the interest rates are low at the moment but It still gained quite a lot of money this year (considering you don't do anything for it)
Plus I'm afraid to get robbed and left penniless, so I leave enough money on my normal account but not more than what I need. (I live in a shady neighborhood)
I'm taking myself and my brother to a concert in a few months, just from the money I gained from putting my money in a savings account.

Interest income brah. I made $200 on interest last year from just having like $10k in my savings account.

Dont do it bro. Spend all ur money @ abercrombie and fitch to like like a high school flamer 4 lyfe.

cuz piggies love spare change

my checking account has a 2% interest rate on up to $25,000, as long as you make 10 credit transactions per month and have direct deposit. can't even find a savings account with that.

It can be used as a personal piggy bank. What I do is I use only the money thats in my checking account as my saving account piles up little by little. Don't touch your savings and after a year + you'll have a good amount of money in your savings to fall back on. It can come in handy in the future,just keep your savings acc

It's just for interest.
You get money for not spending it.
It's 100% safe investment if you have nothing else to do with your money.
I personally have $0 in my savings b/c I spend my money on a daily basis.

[quote=Marshmallon]Checking account: "A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure."

Savings account: "A savings account allows you to accumulate interest on funds you've saved for future needs. Interest rates can be compounded on a daily, weekly, monthly, or annual basis. Savings accounts vary by monthly service fees, interest rates, method used to calculate interest, and minimum opening deposit."

So yeah, savings accounts are for long-term (due to interest), checking short-term (for everyday purchases).

Also, I would recommend investing in stocks and mutual funds. Having money in a savings account is nice and secure and all but you don't get much interest at all.[/quote]

Definitely thinking about investing in stocks and brokerage in the near future!

Checking account: "A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure."

Savings account: "A savings account allows you to accumulate interest on funds you've saved for future needs. Interest rates can be compounded on a daily, weekly, monthly, or annual basis. Savings accounts vary by monthly service fees, interest rates, method used to calculate interest, and minimum opening deposit."

So yeah, savings accounts are for long-term (due to interest), checking short-term (for everyday purchases).

Also, I would recommend investing in stocks and mutual funds. Having money in a savings account is nice and secure and all but you don't get much interest at all.