closing my checking account

**fluttermuffin** · 04-14-2011, 02:07 PM

just am looking for some advice and feedback about closing my checking account.... is it a good idea?

I've been toying with the idea of closing the checking account and just having a savings account.

learning the envelope system to pay my bills sounds like it'll be easier to keep track...

thougts, ideas??

**Inkstain82** · 04-14-2011, 02:10 PM

Mrs. Stain and I haven't had a checking account in about four years now. It got to the point where we realized that we just weren't responsible enough for one. Paying for the occasional money order dwarfs even one overdraft fee a year.

**beks37** · 04-14-2011, 02:31 PM

I'd say go for it if it helps you to save money and be more responsible with it. I know there are a lot of people who don't have checking accounts and if you really need a check, then Walmart sells money orders for like $2.00. Not sure that's the exact price, but I know it's cheap!

**Inkstain82** · 04-14-2011, 02:32 PM

I'm not sure if it's everywhere, but the last two places I've lived, WM money orders are 46 cents.

**Russ** · 04-14-2011, 02:33 PM

Try to think of all the places you would likely write a check. Where would you be most likely to have trouble?

**beks37** · 04-14-2011, 02:34 PM

Originally Posted by Inkstain82

I'm not sure if it's everywhere, but the last two places I've lived, WM money orders are 46 cents.

Even better!!

**craftypam** · 04-14-2011, 02:35 PM

Keep in mind that if you need to take money out of your savings account more than 5 times a month you will be charged each time after that. Check with your bank/cu

**Nishu** · 04-14-2011, 03:17 PM

How would you pay your bills? Utility bills, cell phone bills, cable, insurance, rent?

How exactly would you do that without a checking account?

**Inkstain82** · 04-14-2011, 03:18 PM

I use a pre-paid debit card. It's got a small fee associated with it (about $3/month), but that's still cheaper than a checking account.

**JanieD** · 04-14-2011, 03:40 PM

Just a thought - keep receipts as proof of payment since you wouldn't have a cleared check as a "receipt". Can't tell you how many times I'm told my check is my receipt.

**krbshappy71** · 04-14-2011, 03:43 PM

Originally Posted by fluttermuffin

just am looking for some advice and feedback about closing my checking account.... is it a good idea?

I've been toying with the idea of closing the checking account and just having a savings account.

learning the envelope system to pay my bills sounds like it'll be easier to keep track...

thougts, ideas??

Check your savings account does not have restrictions on how many transactions per month you are allowed. Some charge for multiple transactions and if you get into a situation where you find yourself stopping off at the bank you don't want to get a fee.

--oops I guess I am repeating CraftyPam's! but..still...look into it.

**wanderlusting** · 04-14-2011, 04:03 PM

Originally Posted by krbshappy71

Check your savings account does not have restrictions on how many transactions per month you are allowed. Some charge for multiple transactions and if you get into a situation where you find yourself stopping off at the bank you don't want to get a fee.

--oops I guess I am repeating CraftyPam's! but..still...look into it.

Yup- I bank with USAA and they won't allow more than 5 withdrawls from my savings account a month. They told me that it's against some banking regulations to have more than that a month. If I did do more than that a month, I'd be charged a fee. If I continually did it, the account would be converted into a checking account.

I thought I'd be smart and keep everything into savings and just move money into checking as I needed it so I could get the interest. Didn't work out that way though

**krbshappy71** · 04-14-2011, 04:13 PM

Originally Posted by jennybethg

Yup- I bank with USAA and they won't allow more than 5 withdrawls from my savings account a month. They told me that it's against some banking regulations to have more than that a month. If I did do more than that a month, I'd be charged a fee. If I continually did it, the account would be converted into a checking account.

I thought I'd be smart and keep everything into savings and just move money into checking as I needed it so I could get the interest. Didn't work out that way though

I found out the hard way when my daughters starting getting older I just had savings accounts for them. As they started going out more and fetching money we got hit with a small fee. Um, not cool! So then we switched to "money in savings stays in savings, better not spend what you have in cash too fast".

**pollypurebred39** · 04-14-2011, 04:43 PM

We switched to a credit union that not only has free checking & savings, but no restrictions, AND it earns interest. The only requirement is that we keep at least $25 in the savings account. We switched from a bank to a credit union after the fees just kept coming. I even was charged an inactivity fee on the savings account! You just get to where you've had enough and tell them to keep their account, there's someone else out there who wants my business enough to not nickel and dime me at every turn.

I use the envelope system and have been so successful my DH is taking notice. It really does help me to keep my spending tightly under control.

**khaski** · 04-14-2011, 07:04 PM

I would look for a low/no fee account somewhere rather than go without- to me, having to pay .50 extra or whatever, on top a trip to the store, just to pay a bill, would mess me up more! It may cost you more in the pong run than to have a low cost/free chekcing account- proceed carefully! Have you looked into online checking accounts, like through ING Direct? Don't know their rates, but may be cheaper than brick and mortar bank.