Latest news with #checkingaccount
CNET
20-05-2025
- Business
- CNET
Stop a Recession From Wrecking Your Finances by Putting Your Money Here
The right place for your cash depends on what you want to use it for. atakan/Getty Images Your finances have been through a lot lately. From stock market swings to ever-changing tariffs, it feels like the hits just keep coming. And now there's a recession looming. Is there anything you can do to protect your money from this latest threat (apart from stuffing it under your mattress)? Yes, and one easy step is to make sure your cash is in the right place -- or, rather, places. Keeping all your funds in one account can mean missing out on opportunities to maximize your money. So, here's where you should put everything from your everyday spending cash to your long-term savings to shield it from a recession. 💵 Where to keep your spending money in a recession Rewards checking account Even if your paycheck is directly deposited into your checking account, you shouldn't keep all your money there. Your checking account funds should cover everyday spending and bills, plus a cushion for other expenses. The rest of your cash should be in an account that earns a high interest rate so it can grow. Plus, when you keep money earmarked for savings in a separate account, you're not tempted to dip into it. You can still get returns with the right checking account. Some top high-yield checking accounts offer APYs up to 3.30%, far better than the 0% you'll get with a typical checking account. Why not earn some interest on your spending money if you can? With prices high across the board, every little bit helps. 🚨 Where to keep your emergency fund in a recession High-yield savings account An emergency fund is a must-have at any time but especially when the economy is shaky. Whether you're hit with a layoff or a sudden medical bill, your emergency fund can help you avoid going into debt to cover your expenses. The best place to keep an emergency fund is in a high-yield savings account where your money is easily accessible when you need it. Unlike traditional savings accounts, top HYSAs earn annual percentage yields more than 10 times the national average, with some as high as 4.4% APY. With a higher yield, you'll benefit from compounding interest. That's when you're not just earning interest on your initial deposit but accumulating interest on top of the interest you already earned. Your money grows faster, giving you a bigger balance to draw from when the time comes. ⏲️ Where to keep savings for short-term goals in a recession Certificate of deposit If you're saving for a goal in the near future -- like buying a car or paying for home repairs -- a certificate of deposit is a smart option. Unlike savings accounts, which have variable rates, CDs offer a fixed rate that's locked in when you open the account. That means your earnings will never drop and your returns are guaranteed, regardless of what's happening in the economy. You must keep your money in the CD for the full term to avoid early withdrawal penalties. But with terms ranging from a few months to several years, it's easy to find a CD that fits your timeline. In fact, the early withdrawal fee can discourage you from tapping into your funds before you really need them. 🗓️ Where to keep savings for long-term goals in a recession It depends The best place for long-term savings goals depends on the goal. Retirement savings are best in tax-advantaged retirement accounts (more on that below) but you have plenty of options for other goals. For example, if you're saving for your child's college fund, consider a 529 plan. These state-sponsored savings plans allow relatives and other individuals to put aside money for a child's education and come with tax benefits like tax-free withdrawals if the money is used for educational expenses. You could also consider a low-risk government-backed investment like an I bond, which can preserve your purchasing power in the face of inflation. If you're saving for a down payment on a house, consider the pros and cons of accounts like homebuyer savings accounts, high-yield savings accounts and CDs. 🧑🦳 Where to keep your retirement savings in a recession Tax-advantaged retirement funds Retirement accounts like 401(k)s and IRAs are designed to help you maximize your tax advantages. Depending on the account you choose, you'll either pay taxes now or when you withdraw the funds, allowing you to account for a potentially lower income in retirement. If your employer offers contribution matching on a retirement savings plan, it's essentially free money to boost your nest egg. While brief stock market swings can cause panic, investing is still critical for long-term financial stability. The S&P 500 has historically delivered an annual return of about 10% for investors who stick it out over decades. Instead of trying to beat the market, focus more on your ideal investing strategy. A robo-advisor can help. If you're nearing retirement age, you may want to rebalance and diversify your portfolio so more of your retirement fund is in low-risk assets like CDs or bonds.
Yahoo
11-05-2025
- Business
- Yahoo
I'm a Financial Planning Expert: Here's How Much Money Boomers Should Have in Their Checking Accounts
If you're a boomer who's wondering how much money you should keep in your checking account, you're in the right place. The short answer is that it's important to have enough money on hand — or easily accessible in a checking account — to cover your day-to-day expenses, automatic payments and maybe a few small emergencies. It doesn't necessarily matter how old you are either. Having that money in your account can provide you with a sense of financial security as you go about your daily life. Read Next: Explore More: But how much money is enough — and how much is too much? Here's what financial planning experts, Barbara O'Neill and Adam Puff, told us. 'You should have six months of expenses in your checking account,' said Adam Puff, president and founder of Haddonfield Financial Planning. 'This is certainly more important when you are working and dependent on a paycheck.' This general rule of thumb applies to nearly everyone, said Puff, regardless of age. But for boomers especially, it might be wise to keep at least this much money in a checking account so they're prepared for any unexpected expenses and don't have to withdraw from their investments. 'With regard to boomers, they may not want to liquidate assets or retirement assets if an emergency arises,' said Puff. 'That said, nobody can time the market,' he added, 'so having a cushion may well give you the time you need to be more selective in what assets you need to sell to meet an unexpected expense or at the very least, buy you some time.' Be Aware: While keeping about six months' worth of living expenses in a checking account is a good guideline, boomers might want to allocate the majority of that money into a savings account instead. That way, they can capitalize on the interest earned while retaining easy access to it in case of emergencies. 'According to the Federal Deposit Insurance Corporation — or FDIC — the average interest rate for checking accounts as of May 8, 2025 was 0.07%,' said Barbara O'Neill, Ph.D., a certified financial planner and expert contributor for 'By contrast, the best high-yield online savings accounts were paying a 4.25% to 5% APY — annual percentage yield — in early May or over 50 times more what checking accounts pay,' she continued. 'Given this big difference in APYs between checking and savings accounts, it is best to keep only the amount needed to pay household bills in a checking account.' She also shared that this amount depends on the baby boomer household. For example, O'Neill said, 'If more money is direct deposited into their checking account than is actually needed for expenses — via a pension, Social Security, a job, required minimum distribution withdrawals, etc. — it should be transferred to savings.' 'I think the boomer generation still has a little bit of the Great Depression era hanging over them and are certainly more inclined to have a safety net, even if it's a larger than it should be,' said Puff. 'That means for many boomers, the amount of funds in their checking account is often too large.' The problem with this is that even checking accounts with a higher yield usually don't pay as much as they could. Depending on the interest rate, it might be wiser to check out investment firms — like Fidelity or Vanguard — or online banks to compare options. The money might be less accessible when it's wrapped up in investments, but it can grow more quickly. 'If you have too much cash, you should think about where you are keeping it so your cash is earning its maximum potential,' said Puff. But don't neglect your safety net. 'This world seems to be getting crazier and having cash on hand can save a lot of headaches from unforeseen issues,' he continued. 'For the boomer generation, those emergencies are more likely to be medical or involve their children or grandchildren. You don't want to be caught short if it involves your family or your health, which is why I circle back to recommending reserves of at least six months of expenses.' Tracking your expenses at any age is a good idea, but it's especially important if you're nearing your retirement years — or have already retired — and every dollar counts. Knowing how much you spend can also help you decide how much you actually need in your checking account. 'Baby boomers — and adults of all generations — need to have enough money in their checking account to pay their monthly bills,' said O'Neill. Tracking household expenses for a month or two can help determine this amount, he added. 'Be sure to include the monthly prorated amount for occasional expenses such as auto insurance premiums, vacations and property tax bills.' Say your average monthly expenses add up to $3,000. You should ideally have $18,000 in checking — or split between your checking and savings accounts. There's no need to be so exact when it comes to your six months' worth of expenses goal. If anything, it's better to err on the side of caution and add a little extra to account for bills that might change, like insurance premium changes. 'A modest 'fudge factor' is also a good idea,' said O'Neill. 'For example, if monthly bills total $3,200, aim to keep a balance of $3,500.' Or if you're keeping the full amount in checking, that $3,500 should actually be $21,000. Don't forget to account for any account balance minimums. This shouldn't be too difficult when working with such large sums, but it's still worth keeping in mind that banks often charge a fee when your balance falls below a certain threshold. 'Checking account owners must be careful not to fall below the balance required by their bank to avoid an account maintenance or service fee,' said O'Neill. According to O'Neill, this amount and how it is determined vary by financial institution and may be based on a minimum daily balance, average daily balance or linked balance between checking and savings accounts. Everyone's situation is different, so while some boomers might want to follow the six-month rule, others might be fine with a smaller amount. At the same time, some boomers might determine they need more money in checking — or that they're better off allocating their money across different types of accounts. 'It really depends on your needs and your goals,' said Puff. 'While of course you need to provide for yourself and your spouse, you may have additional goals such as a scholarship fund, charitable contributions, faith-based donations, leaving a legacy for your children and grandchildren and so on.' Take the time to figure out what you need, and don't be afraid to adjust the amounts based on your goals, expenses and comfort level. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees How Far $750K Plus Social Security Goes in Retirement in Every US Region 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 12 SUVs With the Most Reliable Engines This article originally appeared on I'm a Financial Planning Expert: Here's How Much Money Boomers Should Have in Their Checking Accounts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
I'm a Financial Planning Expert: Here's How Much Money Boomers Should Have in Their Checking Accounts
If you're a boomer who's wondering how much money you should keep in your checking account, you're in the right place. The short answer is that it's important to have enough money on hand — or easily accessible in a checking account — to cover your day-to-day expenses, automatic payments and maybe a few small emergencies. It doesn't necessarily matter how old you are either. Having that money in your account can provide you with a sense of financial security as you go about your daily life. Read Next: Explore More: But how much money is enough — and how much is too much? Here's what financial planning experts, Barbara O'Neill and Adam Puff, told us. 'You should have six months of expenses in your checking account,' said Adam Puff, president and founder of Haddonfield Financial Planning. 'This is certainly more important when you are working and dependent on a paycheck.' This general rule of thumb applies to nearly everyone, said Puff, regardless of age. But for boomers especially, it might be wise to keep at least this much money in a checking account so they're prepared for any unexpected expenses and don't have to withdraw from their investments. 'With regard to boomers, they may not want to liquidate assets or retirement assets if an emergency arises,' said Puff. 'That said, nobody can time the market,' he added, 'so having a cushion may well give you the time you need to be more selective in what assets you need to sell to meet an unexpected expense or at the very least, buy you some time.' Be Aware: While keeping about six months' worth of living expenses in a checking account is a good guideline, boomers might want to allocate the majority of that money into a savings account instead. That way, they can capitalize on the interest earned while retaining easy access to it in case of emergencies. 'According to the Federal Deposit Insurance Corporation — or FDIC — the average interest rate for checking accounts as of May 8, 2025 was 0.07%,' said Barbara O'Neill, Ph.D., a certified financial planner and expert contributor for 'By contrast, the best high-yield online savings accounts were paying a 4.25% to 5% APY — annual percentage yield — in early May or over 50 times more what checking accounts pay,' she continued. 'Given this big difference in APYs between checking and savings accounts, it is best to keep only the amount needed to pay household bills in a checking account.' She also shared that this amount depends on the baby boomer household. For example, O'Neill said, 'If more money is direct deposited into their checking account than is actually needed for expenses — via a pension, Social Security, a job, required minimum distribution withdrawals, etc. — it should be transferred to savings.' 'I think the boomer generation still has a little bit of the Great Depression era hanging over them and are certainly more inclined to have a safety net, even if it's a larger than it should be,' said Puff. 'That means for many boomers, the amount of funds in their checking account is often too large.' The problem with this is that even checking accounts with a higher yield usually don't pay as much as they could. Depending on the interest rate, it might be wiser to check out investment firms — like Fidelity or Vanguard — or online banks to compare options. The money might be less accessible when it's wrapped up in investments, but it can grow more quickly. 'If you have too much cash, you should think about where you are keeping it so your cash is earning its maximum potential,' said Puff. But don't neglect your safety net. 'This world seems to be getting crazier and having cash on hand can save a lot of headaches from unforeseen issues,' he continued. 'For the boomer generation, those emergencies are more likely to be medical or involve their children or grandchildren. You don't want to be caught short if it involves your family or your health, which is why I circle back to recommending reserves of at least six months of expenses.' Tracking your expenses at any age is a good idea, but it's especially important if you're nearing your retirement years — or have already retired — and every dollar counts. Knowing how much you spend can also help you decide how much you actually need in your checking account. 'Baby boomers — and adults of all generations — need to have enough money in their checking account to pay their monthly bills,' said O'Neill. Tracking household expenses for a month or two can help determine this amount, he added. 'Be sure to include the monthly prorated amount for occasional expenses such as auto insurance premiums, vacations and property tax bills.' Say your average monthly expenses add up to $3,000. You should ideally have $18,000 in checking — or split between your checking and savings accounts. There's no need to be so exact when it comes to your six months' worth of expenses goal. If anything, it's better to err on the side of caution and add a little extra to account for bills that might change, like insurance premium changes. 'A modest 'fudge factor' is also a good idea,' said O'Neill. 'For example, if monthly bills total $3,200, aim to keep a balance of $3,500.' Or if you're keeping the full amount in checking, that $3,500 should actually be $21,000. Don't forget to account for any account balance minimums. This shouldn't be too difficult when working with such large sums, but it's still worth keeping in mind that banks often charge a fee when your balance falls below a certain threshold. 'Checking account owners must be careful not to fall below the balance required by their bank to avoid an account maintenance or service fee,' said O'Neill. According to O'Neill, this amount and how it is determined vary by financial institution and may be based on a minimum daily balance, average daily balance or linked balance between checking and savings accounts. Everyone's situation is different, so while some boomers might want to follow the six-month rule, others might be fine with a smaller amount. At the same time, some boomers might determine they need more money in checking — or that they're better off allocating their money across different types of accounts. 'It really depends on your needs and your goals,' said Puff. 'While of course you need to provide for yourself and your spouse, you may have additional goals such as a scholarship fund, charitable contributions, faith-based donations, leaving a legacy for your children and grandchildren and so on.' Take the time to figure out what you need, and don't be afraid to adjust the amounts based on your goals, expenses and comfort level. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees How Far $750K Plus Social Security Goes in Retirement in Every US Region 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 12 SUVs With the Most Reliable Engines This article originally appeared on I'm a Financial Planning Expert: Here's How Much Money Boomers Should Have in Their Checking Accounts
Yahoo
10-05-2025
- Business
- Yahoo
TAB Bank review (2025): An online bank with one of the best high-yield savings accounts on the market
Summary: TAB Bank is a Utah-based online bank that was founded in 1998 as Transportation Alliance Bank and primarily served customers in the trucking industry. It has since expanded to provide banking services to individuals, families, and businesses across the nation. TAB Spend is a rewards checking account that offers customers the chance to earn interest on their checking account balance as well as cash back on their purchases. There is no monthly fee associated with this account. There is also no minimum opening deposit requirement, though you'll need to maintain a balance of $0.01 to earn interest. TAB's high-yield savings account currently offers 4.26% APY with no minimum opening deposit or minimum balance required. There are also no monthly maintenance fees. This account ranks among our list of the 10 best high-yield savings accounts available today. TAB Bank has served the trucking industry for decades, and its Chrome Checking account is designed for truck drivers and OTR operators. This account requires a minimum of $25 to open and offers 0.10% APY. This account charges a monthly service fee of $8, which can be waived by meeting one of the following requirements: $1,000 minimum daily balance 8 debit card purchases post to your TAB checking account during the monthly statement cycle, excluding ATM transactions $1,200 in direct deposits per monthly statement cycle TAB's money market account requires a minimum opening deposit of $25 and offers 0.25% APY. Interest is compounded daily and credited monthly. TAB Bank's CDs offer rates up to 4.21% APY with a minimum opening deposit of $1,000. Terms range from one to five years, and interest is compounded daily and credited monthly. TAB Bank's CD offerings were included in our ranking of the best CDs available today. TAB currently offers auto, home, renters, pet, life, disaster insurance, and more. Business customers can take advantage of TAB's suite of business products and services, which include business loans, lines of credit, checking and savings accounts, money market accounts, and more. This embedded content is not available in your region. Here's a closer look at the fees you may be responsible for as a TAB Bank customer: Here are some of the major pros and cons to consider before becoming a TAB Bank customer: Pros: Checking account earns rewards: Spend account customers can earn 1% cash back on all purchases. Competitive rates on savings account and CDs: TAB's savings account and CDs offer more than 4% APY — well above national averages. No monthly fees for most accounts: With the exception of the Chrome checking account, TAB Bank doesn't charge monthly maintenance fees. Cons: High minimum opening deposit for CDs: The minimum opening deposit for CDs is $1,000, which is higher than many comparable CDs on the market. No physical branches: TAB Bank does not have physical branch locations for customers to visit, which could be a drawback for banking customers who prefer face-to-face service. TAB Bank representatives can be reached via telephone at (800) 355-3063 from 6 a.m. to 7 p.m. (Mountain), Monday through Friday, and 9 a.m. to 3 p.m. (Mountain) on Saturdays. Federal holidays are excluded. The bank also offers an online form you can submit to be contacted via phone or email. TAB's mailing address is: 4185 Harrison Blvd, Ogden, UT 84403. This bank also offers banking services via its mobile app, which is available for download on both the App Store and Google Play with a rating of 4.7 and 4.4 stars, respectively. Customers can use the app to check account balances, search transactions, transfer funds between accounts, pay bills, deposit checks, and more. Yes, TAB Bank is an FDIC-insured bank that insures deposits to the federal maximum of $250,000 per depositor, per ownership category. TAB Bank's routing number is 124384657. TAB Bank was founded in 1998.
