6 must have bank accounts that will keep your money organized

Lumping all your money together in one bank account is kind of like putting all your books on a bookshelf in no particular order. Sure, all the books are on the shelf where they belong, but the next time you’re looking for a specific book you’ll probably have a hard time finding it. It’s better to organize the books by genre, author, color, or size so that you have a better idea of where each one is. It might sound like overkill, but this is how I treat my bank accounts. My family has 6 bank accounts and each one serves a specific purpose.  I know what you’re thinking.  Why further complicate something like banking which can already be a nuisance in itself?  Between the bank fees and the minimum balances, isn’t having multiple bank accounts more of a hassle than it’s worth?  Well, let me give you a breakdown of my family’s bank accounts and how they would be useful for you and I’ll let you be the judge.

1. Regular Savings Account

This is the account in which you would put your $1,000 emergency savings money.  It’s also the account you will start putting additional savings in when you have finished paying off debt and are working on building up more savings.  If an unexpected emergency expense comes up, you will want a savings account with easy access so that you can transfer the needed money from your savings account to your checking account right away.  Just make sure it’s actually an emergency!

2. Online Savings Account

Online bank accounts are a great place for additional savings because they pay much higher interest rates than traditional banks.  A brick and mortar bank might pay as low as .01% interest on savings accounts whereas an online savings account pays closer to 2%.  If you already have an amount you’re comfortable with in your regular savings account, but want to keep saving more, I recommend putting additional money in an online savings account so that it will grow at a faster rate. 

Please note – transferring money out of your online savings account may take a day or two, so make sure the money you put in this account does not need to be easily accessible.  I actually view the inaccessibility as an added benefit because you’re less likely to spend the money on a whim.

3. & 4. His and Hers Checking Accounts

My husband and I each have our own checking accounts that our paychecks get deposited into and that we each use to pay bills or when we’re shopping or eating out.  The initial reason we had separate checking accounts is that we each entered the marriage with our own account and never closed them to start a joint account.  We instead put each other’s names on our accounts so that we each have access to both.  His account was through a credit union he liked and didn’t want to give up, and mine was through a more common bank that you can find very easily around any city.  I didn’t want to give up the easy access to an ATM.  So we each kept our accounts and enjoy the advantages of both.  If you and your spouse would like to track your expenses separately or simply each prefer a different type of bank, there’s nothing wrong with having separate checking accounts, but I do recommend putting each other’s names on all accounts.

It’s easier to keep track of pretty much anything when you have it all separated and organized, right?  This applies to bank accounts as well. Click To Tweet

5. Custodial Accounts for Each Child

A custodial account is one that is set up for a child or beneficiary and administered by a parent or responsible person.  My daughter has a custodial account we set up when she was a baby.  Between her birth, baptism, and first birthday, she was gifted a good amount of money and we wanted to put it in a separate account just for her.  So we opened a custodial account in her name but we are the administrators and as a minor she cannot make any deposits or withdrawals without one of us present.  I recommend opening one custodial account for each child.

6. Fun Fund Bank Account

This is an account you really shouldn’t open until all your debt is paid off.  Any fun related expenses you incur while you’re paying off debt should come out of your monthly paychecks/budget.  If your debt is paid off, a fun fund is a great account to put money into each month, or every once in a while.  Every month once all your expenses are paid and you’ve put a set amount of money into savings, whatever money is left over can be put into this account.  Then throughout the year whenever you and your family go to a concert or a theme park you don’t have to budget for it because you can use the money you’ve already saved in your fun fund.  Or you can set up an even bigger goal with your family (a dream vacation or season tickets for your favorite team) and save your fun fund money for that.  It will motivate you to be wise with your spending so that you’ll always have some money left over to put in your fun fund at the end of each month.

There you have it!  The 6 bank accounts my family uses and that I recommend for you.  Just like the bookshelf I mentioned earlier, it’s easier to keep track of pretty much anything when you have it all separated and organized, right?  This applies to bank accounts as well.  It might just help you stay on track when it comes to your budget.  Try it out and let me know how it works for you!