All of my salary is direct deposit into a checking account, and I would like to open a new account which I can split my salary and direct deposit $200 pre pay check (every two weeks) into it for particular purpose. This account is NOT for retirement, so I don't need an IRA account, for example, it might be a travel fund for next July, therefore I don't want to have easy access for this account during the saving period. Could anyone provide me information of saving tools. Thanks!
2007-11-29 07:56:59 · 4 answers · asked by Chris 1 in Business & Finance ➔ Personal Finance
Your bank should be able to set up for you a regular savings account and initiate a transfer order that would automatically transfer a set amount from checking to savings on each payday. If you have online banking, you can make manual transfers of funds between accounts as well. If you don't want that easily available an account, you could get one of the online accounts - such as ING - so that you have to jump through more hoops to get at it. Also, I believe the strictly online account pays higher intererest. Check out ING's website or some other reputable online bank if you know of one.
2007-11-29 08:02:19 · answer #1 · answered by L.G. 6 · 0⤊ 0⤋
Your company that does direct deposit can provide you with a new form that you can fill out and specify $200 to a second account. If it is for emergencies and saving for big purchases like insurance, furniture, vacations, or your next car, then you should get a money market account. It will earn some interest and still allow deposits and withdrawals without repurcussions unlike a CD. This second account, can be at a different bank than your checking account and does not have to be local since deposits will be electronic, so shop around on the internet for a good money market account.
2007-11-29 16:07:32 · answer #2 · answered by Frank 5 · 0⤊ 0⤋
Check with your bank. There use to be special accounts, like a Christmas club account, that you could only withdraw once a year.
You could just open a regular savings account and when you accumulate a certain amount, put it into a CD.
2007-11-29 16:03:11 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
I would use emigrantdirect.com. This will allow you to withdraw money every pay check and you will earn interest on your deposits. Hopefully you would have the discipline to not touch it until July. Good Luck
2007-11-29 16:12:36 · answer #4 · answered by 333 1 · 0⤊ 0⤋