Why you should move your payroll to a high interest savings account
When’s the last time you thought about where your paycheque gets deposited? If the answer is ‘when you started your current job’, it’s time to give it another thought. A high interest savings account may not be everyone’s first instinct to store the spoils of your nine to five, but there are a lot of reasons why it should be!
Making money moves
You work hard for your money – and it stands to reason you want to keep more of it in your account. An easy way to do that is to funnel your earnings into an account that gives you the freedom to move your money when and where you need it. From Interac e-Transfers® and EFTs, to transfers to your other EQ contacts, the EQ Bank Savings Plus Account gives you that flexibility for free.
Of all the various places your money moves, bills aren’t always the most sought-after destination. Paying an added fee for the privilege of paying a bill? Now, that stings a little. Everyone has bills but paying a fee to use your own money to pay them can feel a bit like a punishment. Another money move that’s free at EQ Bank: bill payments. They’re all just a tap away; cellphone, hydro, even property taxes. We may not be able to help you escape bills, but we can make paying them fee-free.
Give yourself a raise
Forget waiting for someone to offer you a pay bump ( although you should be negotiating your salary). Why not give yourself a raise – no performance review needed? Compound interest is a beautiful concept, and when’s the last time your chequing account gave you that?
A great way to level up this concept is to use your favourite rewards-bearing credit card for your day-to-day spending. That way, you’re able to keep money in your high interest account for longer, taking advantage of that compound interest. Before your credit card balance due date, pay the bill in full. The funds won’t exit your account immediately, like they would with a debit card, which allows the funds to earn you more interest. Savings hack, anyone?
Organization made easy
Sometimes when payday hits, it seems like the funds are there one moment, and gone the next. Instead of playing detective and wondering where exactly your paycheque went, why not create different accounts for different situations? With EQ Bank, you can open up to five different sub-accounts for all your saving (or transferring) needs and give each one a nickname to stay even more organized. And what’s better – while those funds are waiting to get to their final destination, they’re building compound interest, no matter which sub-account they’re in. And you’re still not paying any monthly fees.
No minimums
With all this money movement going on, we’re willing to bet from month to month, the balance in your account looks different. Your funds ebb and flow depending on … well … life! The concept of keeping a minimum balance just to save on account fees just isn’t for everyone. Using a high-interest no monthly fee account as the main hub for your finances is an easy way to save on those pesky account fees, without the need to keep a minimum balance.
The bottom line? Why limit yourself? The next time payday rolls around, where’s your money going?
®Trademark of Interac Corp. Used under licence
