I’m beginning to feel like a serial bank account opener. I had the same bank basically my whole life until last year when I decided I was frustrated with rising bank fees and closed my accounts at said bank. Hubby and I opted to try a virtual bank with no banking fees but in the end it didn’t work out for us. We missed the services of the traditional brick and mortar bank, like tellers with a face, and decided to switch banks- again.
Within six months we opened and closed eight accounts including investment accounts for our daughters education savings. Wowzers.
This time I’m opening new accounts, at a new bank, for our emergency fund/longer term savings and an account for my blogging funds to transfer through. I will consider my new bank account a business account and want it separate from my day-to-day banking. Since all of my online income is paid via Paypal I need an account for my ‘business’ funds to filer though. Since 90% of my online income will be going towards either long-term savings or debt there won’t be much sitting in the chequing account but will act as a falling place to-to-speak for the funds to go through so they don’t get lost in internet transfers in our everyday chequing account.
I’ve chosen to do it this way for a few reasons.
- Tax time. I’m thinking tax time may be easier if I have one virtual paper trail through one account. Since I’m just now opening the account 3/4 of the way through the year, it may be a bit messy for this year but from hear on out more organized.
- Less temptation. If the money is in an account that is not connected to our day-to-day banking we will be much less tempted to spend it and use it for intended purposes.
- Purchases. Though my business of sorts has few associated costs, there are a few upcoming, such as replacing my dying computer, and I like the idea of using the separate account to pay for it. All neat and tidy in one spot.
- Interest. The savings account I’ve opened for our ER fund/long-term savings is sitting at 1.35%, not too bad for an everyday savings account.
I’m sort of excited about these bank accounts and hope they work out for me and my little freelance/blogging gig!