Banking today can be complicated. Historically, banks were viewed as this place where you placed your money, and it was safe. Then banks started failing and we figured out they were not as safe as we thought. Banks were also viewed as the financial institution where you could invest your money and earn interest–we called that a saving account. But then we found out that the interest rate being paid on our savings accounts is less than one percent.
Today’s Money Monday takes a look at what banks are offering and which one may be best for you.
Practical Banking
Before you consider switching banks or remaining at your current bank you must first take a moment to consider how you have been using your bank. Do you actually need to have a bank, and for what purpose, or do you just need an account to execute transactions and pay bills? How often do you step foot into your bank? Do you have a business, or have children and that’s the reason you remain at a certain bank? The list of evaluating questions can go on, but these questions should help guide you with regards to your banking decisions and choices.
Traveler’s Bank
While this summer is coming to an end, the holiday season is right around the corner and before you know it, it will be the traveling season again. If your lifestyle is such that you can travel or work remotely from anywhere, Charles Schwab may be the bank for you. The benefits of opening Investor Checking seem pretty good. The bank charges no out-of-network fees for use of ATMs globally, and there are no foreign transaction fees associated with use of their debit card. An enticing bonus is that the debit card comes with travel accident insurance and emergency assistance services should you become ill overseas. Finally, the account does not require any minimum balance, or charge maintenance and overdraft fees. If there is a catch to this wonderful account it would be that it must be linked to your Schwab brokerage account which has no minimum requirement.
Certificate of Deposits / Money Market
If your banking interest or concerns mostly revolve around investing or savings, you can consider Alliant Credit Union. This credit union operates online but provided interest rates of 5.15% on one year certificate of deposits. However, a minimum deposit of $1,000 is required.
If you prefer a bank instead of a credit union, you may consider EverBank. Who is Everbank? EverBank is an online bank. They were formally known as TIAA but changed to the new name in 2023. The bank offers options of 5.05% for nine months CDs; 3.9% for five years, 4.1% maturity rate for three years and 4.8% for one year. Opening a CD with this bank requires a minimum of $1,000 deposit.
Traditional Options
When considering a brick and mortar bank, a good option begins with thinking through how many branches the bank has nationwide, and, or in what part of the country. For non high net worth wealthy clients, PNC bank may provide good options with 2,300 branches on the east coast and the Sun Belt in 28 states. The bank provides a basic Virtual Wallet which requires you to maintain a minimum balance of $500, or if you have direct deposit of $500, the monthly fee of $7 will be waived. What I like about the Virtual Wallet program is that the package includes a Reserve Checking Account which allows you to retain money for short term goals and a Growth Savings Account for long term goals. The bank also offers a four-month CD paying an interest rate of 5.15%.
Takeaways
Last week the Federal Reserve Chairman made comments that signal an interest rate cut shortly. One of the impacts of such actions would result in banks and other institutions lowering interest rates. Therefore, it might be time to examine your banking before the cut takes effect.
THAT’S WHAT’S UP!
Today’s What’s Up is about housing costs. While inflation heavily influences the cost of purchasing a house, what about the cost of maintaining a house? The states with the least expensive house average home maintenance costs are Kentucky, Arkansas and Mississippi. The places with the highest average cost of maintenance are Hawaii, California and Massachusetts. So if you are considering relocation, be mindful of these costs as well. And that’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2024. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.
