With the internet being a way of life nowadays, there are so many options for banking. Being no longer limited to the local banks around you opens up much more possibility for getting the most out of your hard earned cash. After all, who doesn't love making money doing virtually nothing?
There are many different types of Checking Accounts. What a lot of people don't know is that you can make money just by using a checking account. A quick Google search of "High Yield Checking Accounts" will quickly show you some examples. Most likely, your current checking account has .1 percent APY, or basically nothing. Some High Yield Checking Accounts can give you up to 4 percent APY. That's a lot of money to be had just for using a checking account. It is important to note that most High Yield Checking Accounts won't just hand you 4 percent APY. Typically, you must have one ACH transfer (AKA a direct deposit, Venmo transfer, etc) into the account monthly. You also have to have a minimum amount of purchases using a debit card linked to the account; often it's around 10-15 purchases. There may be other terms and conditions, depending on the bank. It’s also important to note that the APY you get, isn’t set in stone. Rates change all the time.
Similar to High Yield Checking Accounts, there are also High Yield Savings accounts. Again, often basic savings accounts are often only .1 percent APY. At that rate it'll take you years to make next to nothing. While High Yield Savings Accounts typically won't give you as high of an APY as the High Yield Checking Accounts will, they don't require an ACH or purchases to get the APY. You can put money in there and forget about it. Another thing to note about High Yield Savings Accounts is that some require a minimum balance, while others do not. Oftentimes there will be limits on how often you can withdraw from your savings account. Typically it’s between one to six times a month, though it varies bank to bank. While savings accounts aren’t as liquid as checking accounts, the ability to be able to not have to meet a check list of “to-dos” to get the APY is appealing to many.
Now owning a credit card has a lot of bad stigma around it. You've heard the horror stories of getting so far into debt with a credit card it caused them financial ruin. If you don't have the self control to use a credit card you have two options. 1) DON'T GET ONE. It's impossible to have credit card debt without a credit card. 2) Get a low limit card. Even if you qualify for a much higher limit, if you don't have self control, a low limit one will help.
There are so many credit cards for so many different lifestyles. Take a look at your lifestyle. If you travel tons, a card with travel rewards may be for you. If you don't, a simple cash back card is for you. Some cards will reward you differently for different purchases. (i.e. 4 percent cash back for gas). These rewards can add up fast.
Credit cards are also a fantastic way to build credit. In order to maximize building credit, a general rule of thumb is to not spend more than 10 percent of your card's limit, but spend more than 1 percent monthly. Then when your bill comes, pay it off in full. You will spend more on interest than you receive in cash rewards if you don't.