Why do people have multiple bank accounts?
There we have both pros and cons of having multiple bank accounts. Also it is not illegal to have more than one account. But in actual it is a good practice to have only one account.Multiple bank account ,Pros:•These days’ bank offers limited ATM transactions but if someone having more than one bank account then their limit becomes simply double because of having multiple debit or ATM cards.•If someone having multiple accounts, then they have flexibility to transfer their funds in an account which offers higher interest rate.•Having multiple account gives multiple cheque book so need not rush when one cheque book finishes.•These days all banks are giving credit card to their uses. So person having more than one account have’s flexibility to choose best option in terms of credit card.Multiple bank account, cons:•Every bank account needed to maintain a minimum balance so every user needs to invest some amount as minimum balance.•Saving account gives only 3-4% interest so no more profit in investing multiple bank accounts. Comparatively investing in mutual funds and share market gives more interest rate or output. But is a risky marketplace somewhere.•Users some amount will always be engaged in their different accounts as a minimum threshold amount that they can’t use anyhow. So this is the waste of money.•When you’re using more than one bank account then you’re needed to give extra money in terms of account maintenance fees, debit card annual charges and SMS alert charges etc.•When filing the income tax return, then user needs to maintain all records about their all bank accounts and needed to provide account statement to them.Source: Multiple bank accounts full article about Banking and accounting facility.Source: Multiple bank account pros & cons full video in Hindi well explained about benefits and loses of more than one account.
Why Don't Banks Offer Monthly Percentage Yield as Opposed to Annual Percentage Yield?
Sure, but right now, you would be extremely fortunate to receive that kind of return on a savings or checking account annually. The bank rewards you for having less liquidity. A savings account and a checking account are the most liquid bank accounts out there. If you think about it, to get a rough estimate of your monthly interest, divide your APR by 12. Would you go running to the bank if they advertised a special rate of .5% per month? Yet people would love to get their hands on a guaranteed return of 6%.
Men, would you ever share your bank account with your wife?
Due to females spending habits and unreasonable needs, wives have a history of depleting funds in an account. And in an event of a divorce, the account becomes 100 percent hers. Look what that gold digger did to Emmanual Eboue. So men, would you trust to share a bank account with your wife or even girlfriend?
How can I set up automatic, percentage-based accounting such that a % of my deposits is automatically deposited in a savings account, a % is invested, a % is donated to a worthy cause, etc.?
Talk to your employer's HR/payroll to see if their software can do it; my previous employer's payroll system allowed me to split my pay into multiple accounts on a % basis. Alternately, if you're pay is reasonably stable you can just specify exact amounts that will be approximately correct and adjust up/down manually any time you have a significant variance - hopefully on the upside :)
How do banks calculate interest on savings accounts? My bank gives interest once in three months. If I make many transactions within this period, how the interest is calculated?
Calculation:If you have ₹xxx then interest you accrue will be 4% of ₹xxx then divide it with 365. For ₹1000, interest accrued will be 4% of ₹1000 = 40, then divide it with 365 for the interest accrued for the day which will be equal to ₹0.11.Illustration:From 1st - 5th December your account balance is maintained with₹10000. You accrue an interest of ₹1.1 each day which is equal to ₹5.5 for the 5 day period. (10000*4%/365).On 5th December suppose your account is credited with ₹5000. You will still accrue an interest of ₹1.1 because interest will be calculated on the lowest balance on the particular day however, next day i.e on 6th December your interest will be ₹0.16 per day (15000*4%/365). Say new balance is maintained till 15th so, your total interest till 15th of December will be (1.1*5+1.6*10) which equals to ₹21.5On 15th December your opening balance is ₹15000. Your account is debited with ₹5000. Your interest for the day would be ₹1.1(10000*4%/365). If this balance is maintained till 31st December then the total interest accrued for the month of December will be (1.1*5)+(1.6*10)+(1.1*16) = ₹39.1Additional information: As per RBI guidelines, every saving account is entitled for minimum 4% pa interest. Largest bank of India: State Bank of India & ICICI bank accounts are credited half yearly usually on 25th June & 25th December.Highest rate of interest of for savings account is offered by Yes Bank with 6% pa & Kotak Mahindra Bank with 5.5% pa both for below ₹1lakh deposits.Earlier, till April 1, 2010 banks used to calculated interest rates by different method. This was based on the minimum available balance in the account between the 10th and last day of a month. Now this old method look like a very unfair method where a person who has Rs 10 Lakhs in his savings account on all days expect on two days on 25th and 26th of the month where he kept balance of only Rs 50,000 and after that he increased his balance again to Rs 10 Lakhs. But because his lowest balance was Rs 50,000, he use to get interest of 4% only on Rs 50,000 not on Rs 10 Lakhs which comes out to only Rs 133 which would have been close to Rs 2660.
What does mean for my savings account?
Two rates have been in effect over the year. The rate between the two is 2.5% on an Annual Basis. Your average balance shows the average amount on deposit over the 30 day period. If your interest is compounded daily your balance grows a few cents each day which changes the average. You may have also deposited or withdrawn funds which can change the average.
How to use direct deposit for two accounts for gap inc portal?
Alicia Most payrolls do not allow you to split your automatic deposit amongst two accounts. So have it all put into you checking account. Then either set up direct transfer with your bank for a set dollar amount each payroll period. A WARNING put in only the amount of money you really want to save. Put what you need to spend in your checking account. A great alternative to the banks automatic transfer, is to do it yourself suing the bank's online banking! Just simply hit transfer $ xx.xx from checking to savings.... done deal! :-) Soccerref
How do you split the tax refund when a married couple files jointly but has separate finances?
Great question, specially since you are asking this in December 2015 and not in April 2016. I love when people think ahead :)Here is my take on the subject: Conceptually - each person pays his/ her own taxes, let us say you made $100,000 and your spouse made $50,000; you should pay taxes on $100k and the spouse should pay taxes on $50,000. This is simple.Here is how filing jointly is different than single filers:1. You lose certain things - for example, tax brackets for married couples aren't twice of single filers (marriage penalty)2. You gain certain things - let us take the above example of 100k/ 50k income. Let us say the 50k earning spouse had a 1k loss from a part time business. If the spouse was single, the loss would be deducted from 25% income bracket - $250 tax savings. But with a $150,000 combined earning, the loss is deducted from the 28% bracket, tax savings of $280. So a net difference of $30.Examples like "1" above in my opinion should be split either 50% - 50% OR in proportion to their incomes (or in proportion to their taxes).Examples like "2" - I can see an argument both ways. Spouse earning 50k was able to deduct from a higher tax bracket only because the first spouse was earning 100k so the first spouse deserves some credit too. Counter argument - if there was a profit, then the spouse earning 50k is solely liable for the tax. So I guess this is also a matter of conversation between the couple.Here is how I would go about it: Prepare your taxes as if you were single filers. Then prepare your joint return. The difference is the amount that need to be allocated between the two spouses.I would look at the underlying reasons for the difference - if the difference is purely because the IRS rules tax married people differently than single filers, then they should split the difference in proportion of their incomes.If the difference is due to something else, like the $1k business loss that got deducted from a higher tax bracket; I would guess the 100k earning spouse to have a large heart and let the lower earning spouse to keep that portion of the refund.A good relationship is a real treasure, not worth risking it for a few dollars.By the way, if you are financially responsible, then getting a lot of refund is a bad thing in the first place. Read my entire article here What to know before filling Form W-4? - One More Dime
How much money should I put in my checking account and my savings account?
your savings account should be used long term and you shouldn't touch the money in it... your checking account should be used for purchases, bills, all that stuff... a really good plan that i've always used is called the 10, 10, 80 plan... i heard about it from a pastor... give 10% to the church, put 10% in savings, and put 80% in checking... however i'm not really religious at all so i put 20% in savings and 80% in checking...
Do you think income tax returns should be split evenly or split according to what percent you paid in if you a?
my husband has extra money taken out on his paycheck so he will get a bigger tax return when we file. he says if we filed seperately, i would have to pay in! i have extra taken out of my check but i don't make as much an hour as he does and i need my money more for bills during the year. we have been married almost 40 years and most of the years he has kept most of the money, mostly to pay off homes etc. but the past few years he has kept most of it just for whatever!! last year he gave me my share... it was what i told him i was taking after his little fit he threw... and then he said he needed help on paying the car insurance so i ended up giving all my part back. (he was saving the rest of the money for a roof on the house, which never happened). now this year i think it should be more fair... although his work has been cut to 4 days a week some and i DO know we are more piched for money!! seems i can never win!! what do you suggest!! by the way, he pays most of the household bills and i pay for my own things, and pay for groceries... anything i need. including medical comes out of my own pocket!