As I mentioned previously, I decided to go with a Devon Bank Rewards Checking account over the NorStates Bank version, mostly because of the location. I finally opened my Rewards Checking Account late last week after blogging about it for months. I’m looking forward to the benefits of a 4.15% APR. A few quick notes about Devon Bank that were unavailable online. I do not have to fulfill the requirements to earn the 4.15% APR for the first two months because they know it’s a transitional period. Also, they have no minimum balance fees and the minimum deposit when opening your account is $100.
Quick note for those of you opening accounts in the near future: bring multiple forms of ID. They asked me for two forms of ID. I gave my driver’s license as my first form. The second form had to have my current address, which rules out credit cards, etc. Fortunately, the Wells Fargo escrow check had my current address on the check. I recommend bringing a utility bill statement with your address and name when opening an account.
I received the balance of my escrow account from Wells Fargo last week and used that as my first deposit to open the account. Now I have to change my direct deposit from my current bank account to my rewards checking account. Obviously I will keep the majority of my cash in the rewards checking account to take advantage of the high interest rate. The biggest advantage of the rewards checking account is I can keep my emergency fund in an account that has a high interest rate, yet still have access to it whenever I want via check.
New Bank Rotation
I have a few smaller bank accounts with minimal balances that I will disregard for this exercise. I do find that it’s a good idea to have a plan with your bank accounts with regards to where the money flows in and out. I have three banks in my rotation, all of which are checking accounts: Harris, National City and Devon Bank.
Devon Bank will receive 90% of my direct deposit, which will fulfill one of my requirements to get the higher APR. From this account I will pay my Insurance, Credit Cards, Utilities, Assessments and Mortgage.
I plan on using my Harris account to input my self-employed income (my business checking account is with Harris) and personal checks. I am keeping this account open for convenience as it is only two blocks away from my condo. I will finish paying off my car with this account as I have less than a year left and it would be a pain to switch payment accounts at this point. Money will come out of this account for my Solo 401k. Anything left over will get shifted over to the Devon Bank account.
I like having a separate account where part of my direct deposit goes. I feel like I get free money every time I look in this account. I suppose it’s my way of automating my savings. I’ll be putting roughly 10% of my direct deposit into this account. This money will go towards my retirement savings.
Is anybody else’s bank rotation as convoluted as mine?
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