The very first thing I want you to do when you start your fund is to look at your bank accounts.
I bank with BanCorp South and have their free performance checking account. Each month I earn 3% interest on the balance. I also earn cash back at various merchants when I use my debit card. I also have a savings account with them, but the interest rate is about .25%. So I keep the fund in one of my checking accounts. I just keep a running tally in my register of what is our spendable money and what is our Disney fund. I love earning the interest!
I suggest to you that you take a look at your current account. If you’ve had it for a few years, your bank might have an account that is better than yours. Also if you are still paying a fee for your account and it is just a personal checking account, you might want to look into changing. Personal checking accounts have come a long way and you shouldn’t have to pay a fee at all.
Banks can also be competitive to get your business. When we switched from Compass to BanCorp South, they were offering us a $50 prepaid Visa for switching. We got a fold-able canvas chair for opening mother-in-law’s account. A few months ago one of the local banks were offering a free ipod for opening a new account.
Whatever you choose to do, make sure you do your research. Changing your bank account is a major hassle and it should only be done if the rewards/benefits are worth it. 3% interest is definitely worth it to me!
We also purchased a safety deposit box. It was only $25 for a year! I was really surprised. I thought it was a lot more than that.
Steps to follow:
- Visit your bank’s website. Check out all the different accounts they are currently offering and make sure you have the best account for your needs. (You could also call your local branch.)
- Visit other local banks. Check to see if they have better accounts and if they are offering a deal if you switch to them.
- Consider opening an ING account. They are currently offering a $50 bonus for opening an electric orange account. (I personally have one of these accounts.)
Do you get any benefits from your bank account?
Want to find out how to find even more money in your budget? Be sure to check out all the articles in the your fund series.
{ 41 comments… read them below or add one }
Our credit union also offers interest on our checking account. We also receive a .10 credit every time we use our debit card for a maximum of 5.00 per month. Our local branch has a small waiting area with a PC, free wi-fi, coffee, and toys for the kids if you’ll be at the bank for a while. I am very happy with it!
We are starting our “Fence Fund” :) Since we live in Disney’s backyard I thought that I would be awesome to save up to fence in ours!
Thanks for all of your time and knowledge!!
Just curious, why not open another account just for the Disney money? Get another gift and not have to worry about keeping the balance separate from the spendable funds.
Like Shell said in the above comment, I am using a seperate account. It was one I already had from a previous home-based business that I was really no longer using and had taken the balance down to almost nothing. I didn’t want to have to worry about keeping up with what was spendable and what we are trying to mark for a special expense.
So…I am anxious to fill it up with money so we can set sail on a Disney Cruise :)
We get points on our debit card and do earn interest with our checking account. I am actually opening a new checking account because I can get $100 if I use the debit card 5 times and keep the account open for 6 months.
and by the way, I am really looking forward to this series. Love your site!
I told Nathan as soon as you got back we would start this with you!! I am so excited!! Our plan is October 2011! Thanks for making this possible
Our credit union offers a seperate “Vacation Account” that I use to save for our property taxes :P and for our disney trip ;) The interest rate isn’t super, but since its hard to access the money, I’ll deal with keeping track of two balances in the same account.
A point i have learn, the hard way, is to see how they record money in and out of your account. Some banks will charge you a overdraft fee for having money pulled then two minutes later money add in. Our bank now, it is what happens in a day. This has stop 90% of our overdraft fees.
I do not have a separate account because I would not be eligible to earn the same interest rate. You have to have an automatic deposit set up to get the rate and the only one we have is my husband’s paycheck.
With all the banks around here, I have still never found one that offers any good incentives without a automatic deposit which I simply don’t have the option to have with my employer.
That is a good point for sure! My husband had that problem with his business account. We closed it and moved it to the bank we have our joint account with. They actually shuffle things around to the best advantage of the customer to avoid overdrafts. The other bank had a policy to cause more overdrafts. We nearly pulled our hair trying to stop the overdrafts and had to close the account in the end.
I am looking forward to following along with you! I have decided to start a Disney fund for my 4 yr old and I. My husband and I always plan one big vacation a year and a short beach vacation (this year and last were both Disney trips…but, he does not want to do that again this coming year…so, I plan to try and start a Disney fund to add an annual Disney trip to the mix)…
I am just jumping on the coupon bandwagon (the stores around here do not do double coupons…so I have rarely used coupons as I had switched most of our groceries to store brand when I can). Hoping to get a better handle on this part of our budget.
Thank you for the bank info…my older son turns 18 in a few weeks and we had planned to update our checking account and his at that time. Our bank is now offering mileage for acct usuage and cash back…so, we need to research which one will benefit our needs!
My bank only requires either an automatic deposit or an automatic payment. My husband is self employed and I am a homemaker, so we don’t have a check to ge an auto deposit on. However, I have 2 insurance payments set up for auto pay (car ins and life ins) and that counts at my bank. I also have to use my debit card 12 times per month and get online statements.
I still need to set up my account with Chase. They told me as long as something was direct deposited into the account it would be okay. Where I work I can split my paycheck however I want and still have direct deposit. So I’m gonna start with 25 a paycheck. Only 50 a month or so. But better than nothing. It’ll actually pay the assessment fees for my timeshare.
I work at a bank and not only have checking accounts come a long way, switching banks has too! Many banks offer a “switch kit” on their website that will provide you with all the forms you need to switch your account. I can’t speak for all banks, but I know that when we have a customer come in shopping for a new bank, we do whatever we can to help make the transition as easy as possible – this includes helping the customer fill out all necessary transfer forms as well as contacting their direct deposit/automatic transfer vendors. Most often, their current bank won’t allow us to assist with closing their existing accounts (obviously) but we provide the forms the customer will need when closing out their current accounts. If your bank doesn’t offer these switch kits, you should be able to google “bank switch kit” and get a pretty good idea of what information you will need. Just wanted to share =)
FirstBank (they are only in TN) has 3.78% interest. You have to have automatic deposit or withdrawal. We have our car insurance automatically deducted each month, so that meets the qualifications for the interest (we also have to have 10 debits per month). Anyone who wants to have 2 high interest checking accounts should check to see if their bank will allow them to have an automatic withdrawal instead of an automatic deposit.
http://www.firstbankonline.com
I’m REALLY looking forward to this series! Got my account set up at ING direct, now to put some money into it:-)
I know I give up the interest rate but I transfer my money over to INGdirect.com. I gave up the debit card option so I’m not tempted to use the money saved for purchases. Transfering money back and forth is a bit of a pain if you need the money in a rush because it takes three days to get the funds transfered back and forth. The interest rates have dropped dramatically but that’s just what works for me.
I agree w/others who mentioned ING accounts. Online accounts yield much higher interest rates. Not only that, but because there’s usually a 3 day wait to transfer funds, I find it to be a deterrent to just pulling the money out and spending it. It forces you to think about what you want to spend that money for and have a chance to back out of spending that money.
I forgot to mention, of course there are also other institutions that offers high yield accounts. HSBC also has an online savings account and from what I’ve seen, they tend to be a wee bit higher on the interest than ING sometimes.
I just switched our online savings accounts last month. They have one of these highest APYs I’ve seen and they’ve even increased it in the month I’ve had an account! (Now 2.15%!) I think it’s also neat because they have you set savings goals and then demonstrate what percentage of your goal you’ve met. You can set more. Then one goal per account and best of all, once you’ve met that goal you have the option to cash out to your original checking account or retailers will offer gift cards for the savings amount plus up to a 12% bonus. I’m not sure if disney is a retailer but it’s worth looking into.
My wife and I have 2 checking accounts at Chase, both with Disney Rewards debit cards. This way we can accumulate Disney Reward Dollars without using the credit card version and we can save for our next Disney trip through a separate account.
~Mark.
I am looking forward to trying to save along with you. I think it is a great idea and have tried doing it several times but something always comes up where I need the money. I hope it works this time.
I’m looking forward to following this series too. I’ve already learned a lot from your site that I didn’t know before so this should be another learning experience.
On a side note, I HATE our current bank but can’t convince my husband that switching to a smaller credit union is a better idea because he’s been banking with them forever.
Brandi what online account did you switch to if you don’t mind sharing that is?
Kristin, are you able to have say $5 deposited from your husband’s paycheck to a Disney fund and then the rest to your regular checking? My credit union said the amount didn’t matter, just that direct deposit was happening. My husband’s paycheck gets deposited into the Disney fund, our emergency fund, and the balance into our regular checking for bills and what not.
A local bank was offering $100 to set up a new account but the account was only free if you had direct deposit which I dont! Recently I received another offer from them for $100 and this time you have the option of making at least 6 debits per month(instead of direct deposit) to have the monthly fee waived! I am planning to set one up soon
You might also think of using a credit union instead of a bank. We don’t pay any service fees. Like Kristen we gave up our savings account when they offered 6% in our checking account. The savings and money market wasn’t even 1%. Of course, that 6% has gone down to 4%, but that’s still great. We have to have a direct deposit and use our debit card at least 10 times a month. Which is not a problem.
Great info I am going to do some checking on my account, thanks.
Oops sorry! I had meant to put that it is smartypig.com that offers 2.15% and the 12% bonus for cashing out to gift cards. That’s what happens when typing on a mobile device, proofreading is a lot more difficult!
We bank with Bank of America (the devil, I know) and use their Keep the Change savings program. For every purchase made with our debit cards (from checking account), the ‘change’ rounded up to the next dollar goes into our savings account. So, if I make a $12.40 purchase, $0.60 goes into my savings account. We never miss the ‘change’ and it is a great way to ‘save’ for something special. We use our debit cards for just about everything, and end up accumulating about $17 a month on average. I just checked our balance online and we have ‘saved’ over $600 in the 3 years we have been married.
Mark,
Do you pay an annual fee to have the Disney REwards debit card version? I’m thinking about switching to Chase, and I think I might be interested in that card.
Emily,
Yes, there was a $38 fee; but Chase waives it if you set up a direct deposit within 30 days.
~Mark.
Emily,
Chase also offers a credit card version of the disney card. It, too, puts money towards Disney products, trips, etc. If you don’t want the fee or are not able to do direct deposit, and are able to pay it off each month, it might be an option for you. I know that this is the one we have.
We’ve been debating changing banks because we are frustrated with our current one. You’ve definitely given me something to think about. Thanks!
Thanks Mark!!
I started an ING account over a year ago. The interest rate was better then, but now it’s down to what our credit union has. I haven’t checked it lately, and I’m hoping they do not stick a fee on us for inactivity. There isn’t much in it and I’m thinking of closing it since we are lacking funds to pay our mortgage anyway.
Thanks for all this great advice! I haven’t checked on our accounts in a few years. The last time I did, it really paid off!
I hope it will pay off for you this time, too! :)
An APR of 3% assuming a $2500 deposit for the entire year will give you $75 in interest. IMO, switching banks to gain a percent or two is a lot of hassles for few dollars. Chances are you’ll have to pay for new checks. They run about $12 a box now, so that’s eating into your added interest.