Comments on: My revolutioniary idea to improve Bank savings accounts http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts Sun, 03 Jul 2011 02:33:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Patrick http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-9511 Patrick Wed, 25 Apr 2007 00:12:24 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-9511 I belonged to a credit union that allowed customers to do this. They had a Christmas account with a special interest rate. They also made it easy to set it up for automatic transfers. The catch was it basically worked like a CD. You were required to leave the money in there until a short time before Christmas. But, the only penalty was reverting to the lower interest rate, and it wasn't that much different. I'm no longer a member of the credit union, and this was about 6 years ago, so I'm not sure if it still exists. I belonged to a credit union that allowed customers to do this. They had a Christmas account with a special interest rate. They also made it easy to set it up for automatic transfers. The catch was it basically worked like a CD. You were required to leave the money in there until a short time before Christmas. But, the only penalty was reverting to the lower interest rate, and it wasn’t that much different.

I’m no longer a member of the credit union, and this was about 6 years ago, so I’m not sure if it still exists.

]]> By: Grouping Money in Savings Accounts http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-6102 Grouping Money in Savings Accounts Wed, 11 Apr 2007 22:00:09 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-6102 [...] the only person to think of this. I was actually prompted to post this because of the post over at myfinancialjourney.com. He has the exact same idea I [...] [...] the only person to think of this. I was actually prompted to post this because of the post over at myfinancialjourney.com. He has the exact same idea I [...]

]]> By: Brian http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-6101 Brian Wed, 11 Apr 2007 21:50:46 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-6101 Yes! I have been wishing there was a way to do this for a while now. I have a bunch of money in my savings account and I have to manually keep track of how much is for one thing and how much for another. It would be good just to tag certain amounts in different categories. You are right that it is mostly psychological, but it would definitely be cool. Yes! I have been wishing there was a way to do this for a while now. I have a bunch of money in my savings account and I have to manually keep track of how much is for one thing and how much for another. It would be good just to tag certain amounts in different categories. You are right that it is mostly psychological, but it would definitely be cool.

]]> By: Scott Moonen http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-6081 Scott Moonen Wed, 11 Apr 2007 16:46:34 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-6081 (Re: "because you get no interest"): Sorry, I meant virtual envelopes rather than physical envelopes. With virtual envelopes there's no reason you can't carve your savings account or investments into categories and have things set up so that earnings are distributed proportionally. (Re: “because you get no interest”): Sorry, I meant virtual envelopes rather than physical envelopes. With virtual envelopes there’s no reason you can’t carve your savings account or investments into categories and have things set up so that earnings are distributed proportionally.

]]> By: broknowrchlatr http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-5993 broknowrchlatr Tue, 10 Apr 2007 19:36:59 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-5993 Relative merit depends on your values. Personally, I think the envelop system is no good simply because you get no interest. But it is certainly good for some people. The only system that works for me is an Excle Balance sheet. I get paid on the 15th and the last day of the month. My mortgage is deducted on the 1st and my electric bill is paid then too (they total to be my full paycheck). My credit card bill is due on the 16th and so it is paid on the 16th. after the 16th, any cash that is left is invested, at a minimum in a high yield savings account, until the next month. For me, there is no $$ left over to put a tag on or put in an envelope... Actually, there is 353.48 in there right now... not enought o tag as anythign but general. Relative merit depends on your values. Personally, I think the envelop system is no good simply because you get no interest. But it is certainly good for some people. The only system that works for me is an Excle Balance sheet.

I get paid on the 15th and the last day of the month. My mortgage is deducted on the 1st and my electric bill is paid then too (they total to be my full paycheck). My credit card bill is due on the 16th and so it is paid on the 16th. after the 16th, any cash that is left is invested, at a minimum in a high yield savings account, until the next month. For me, there is no $$ left over to put a tag on or put in an envelope… Actually, there is 353.48 in there right now… not enought o tag as anythign but general.

]]> By: Scott Moonen http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-5975 Scott Moonen Tue, 10 Apr 2007 16:33:29 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-5975 This is probably a more useful tool in personal finance software such as Quicken than in the bank account itself. I've often wished to be able to designate money in Quicken (either cash, checking, savings, etc.) in a certain category. I think this is actually reasonable using the "envelopes method" rather than a ledger-oriented system. I'm just not sure I want to switch to an envelopes system. Can anyone comment on the relative merits of each type of system? This is probably a more useful tool in personal finance software such as Quicken than in the bank account itself. I’ve often wished to be able to designate money in Quicken (either cash, checking, savings, etc.) in a certain category.

I think this is actually reasonable using the “envelopes method” rather than a ledger-oriented system. I’m just not sure I want to switch to an envelopes system. Can anyone comment on the relative merits of each type of system?

]]> By: MFJ http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-5973 MFJ Tue, 10 Apr 2007 16:01:35 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-5973 My theory would be that you would set up a default tag that new funds would go into and deducted funds would come from. Then any money in and out of your tagged regions would be done manually. IE if I know I spent $2000 out of the landscaping fund I would remove $2000 from the landscaping tag to the general tag. It's really just more of a psychological thing than anything. You still only have on account, just you have an easy way to earmark portions of that savings account for your own purposes. It's just a label and carries now weight. IE if your general tag gets drained it's not like you would bounce a check or anything like that. I dunno maybe I'm crazy. I just know that I want to start segregating my money out more and instead of keeping it in an offline document that I now have $250 in my make believe vacation fund I could actually keep track of it in my bank account. I'm sure I'm overlooking some things, but I hate having to open extra accounts when the whole purpose really just is a psychological separation of the money and a physical separation is not necessary. Like you 99% of my payments are on a CC, but my savings accounts don't have that much activity. So maintaining the tags would not be a big deal. My theory would be that you would set up a default tag that new funds would go into and deducted funds would come from. Then any money in and out of your tagged regions would be done manually. IE if I know I spent $2000 out of the landscaping fund I would remove $2000 from the landscaping tag to the general tag.

It’s really just more of a psychological thing than anything. You still only have on account, just you have an easy way to earmark portions of that savings account for your own purposes. It’s just a label and carries now weight. IE if your general tag gets drained it’s not like you would bounce a check or anything like that. I dunno maybe I’m crazy. I just know that I want to start segregating my money out more and instead of keeping it in an offline document that I now have $250 in my make believe vacation fund I could actually keep track of it in my bank account. I’m sure I’m overlooking some things, but I hate having to open extra accounts when the whole purpose really just is a psychological separation of the money and a physical separation is not necessary.

Like you 99% of my payments are on a CC, but my savings accounts don’t have that much activity. So maintaining the tags would not be a big deal.

]]> By: broknowrchlatr http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-5972 broknowrchlatr Tue, 10 Apr 2007 15:53:41 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-5972 This is certainly an interesting concept. I am sure if google had a bank, this would happen. The only hiccup I see is this. How does a bank know what tag to deduct from? Say you write a check for $100 for something for Christmas. They wouldn't knwo what it was for so I guess you would have to move cash out of 'christmas' and into 'general', right? Not sure if this effects you, but I put 90% of my payments and bills on my credit card, so it wouldn't be so informative. Now, if every store categorized every product and sent that to the cc company who sent it to the bank and you could see everything together, now that would be awesome. But I think we're 30 years from that. This is certainly an interesting concept. I am sure if google had a bank, this would happen.

The only hiccup I see is this. How does a bank know what tag to deduct from? Say you write a check for $100 for something for Christmas. They wouldn’t knwo what it was for so I guess you would have to move cash out of ‘christmas’ and into ‘general’, right?

Not sure if this effects you, but I put 90% of my payments and bills on my credit card, so it wouldn’t be so informative.

Now, if every store categorized every product and sent that to the cc company who sent it to the bank and you could see everything together, now that would be awesome. But I think we’re 30 years from that.

]]> By: Dean in Des Moines http://myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts/comment-page-1#comment-5959 Dean in Des Moines Tue, 10 Apr 2007 14:01:25 +0000 http://www.myfinancialjourney.com/archive/my-revolutioniary-idea-to-improve-bank-savings-accounts#comment-5959 ING and most credit unions permit this in various forms. Usually you create a sub-account and give it a name. The bank at which I have a checking account does not permit more than one checking or savings account. ING and most credit unions permit this in various forms. Usually you create a sub-account and give it a name.

The bank at which I have a checking account does not permit more than one checking or savings account.

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