Let’s face it: if you keep all of your money in one savings account, you may not be efficiently saving towards your goals. Your savings should be a place where you have different goals to save up for. With multiple accounts, you can set aside specific goals that are clearly defined. These individual accounts will then help you efficiently save more.
Banking with CIT offers a higher interest rate than traditional big banks and comes with a lot less fees and stipulations. The high yield savings account currently earns 1.35% APY. Traditional big bank savings accounts may require a minimum amount in the account or else they’ll charge you bank fees. With CIT Bank, you truly have no minimum balances that you need to maintain. You can open an online savings account with a $100 minimum deposit and the process only takes a few minutes.
These are the nicknames of the accounts that I have with CIT Bank:
- Emergency Fund
- Property Tax
- General savings
- Entertainment Fund
Here is one example of how I optimize a personalized online savings account. I owe $6648 worth of property taxes a year. This requires me to save $6648/12 = $554 a month. I put this money into my “property tax” account specifically designed for this savings purpose. When it’s time to pay my property tax, I don’t hesitate and need to scramble together this large sum of money. It’s already been purposefully saved up regularly throughout the year. Without a separate online savings account, I could fool myself into thinking I have an extra $6648 in my savings account.
Now, I know exactly how much I have saved up for my different savings goals.
Opening your online savings account will take you less than 10 minutes. Simply go to CIT Bank and then open a new online savings account. Once you open your account, you can easily open additional savings accounts in less than 10 seconds.
You may have different savings goal from myself, such as: house down payment, car fund, wedding fund, Christmas gifts, home remodeling, new furniture, new big screen TV, etc. The point is: these individual accounts will give your savings both direction and inspiration. After you’ve saved up for your goal, don’t forget to always pay with credit.