ideal bank accounts?
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ideal bank accounts? (by BillW [NJ]) Aug 9, 2022 9:20 AM
       ideal bank accounts? (by Richard [MI]) Aug 9, 2022 10:06 AM
       ideal bank accounts? (by Richard [MI]) Aug 9, 2022 10:08 AM
       ideal bank accounts? (by Pmh [TX]) Aug 9, 2022 5:56 PM
       ideal bank accounts? (by Deanna [TX]) Aug 9, 2022 6:50 PM
       ideal bank accounts? (by BillW [NJ]) Aug 10, 2022 7:48 AM
       ideal bank accounts? (by Landlord ofthe Flies [TX]) Aug 10, 2022 10:34 PM
       ideal bank accounts? (by BillW [NJ]) Aug 15, 2022 1:09 PM
       ideal bank accounts? (by Jason [MI]) Aug 16, 2022 11:16 PM

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ideal bank accounts? (by BillW [NJ]) Posted on: Aug 9, 2022 9:20 AM

Since Covid, I no longer need to go to my wells fargo bank and I'm looking at setting up my rental accounts with an on-line bank like Ally, that pays higher interest rates. Right now, I collect rents with ClearNow, and the rents get deposited into the single wells fargo account, I use for both collecting rents and paying expenses.

Please tell me, do you have separate accounts, like a interest bearing savings account for depositing rents and a checking account for paying contractors, etc? Do you think I should have separate accounts for each of my 4 large student rentals? Is there a particular bank you like? Do you use their credit or debit card to pay for rental property expenses?

Any thoughts you can share with me on this are appreciated. Thanks!!


ideal bank accounts? (by Richard [MI]) Posted on: Aug 9, 2022 10:06 AM

I live in an area with spread out towns (Northern Michigan). No bank here has branches in all the places my rentals are located. So I have accounts at several different places where it is convenient for the tenants as many tenants are marginal or don't have bank accounts (one of the many problems with C level tenants).Using clear now is not an option for some of them. They take their money and deposit at the place that is most convenient to them.

Anyway, from these several places (banks or credit unions), I just move the money electronically to my operating account and all bills are paid from there. I have 2 accounts at each place--one for the tenants to deposit the rent and a second to hold the growing balances. This keeps the amount in the account that the tenant knows about low, like $100, so if they get the idea to try anything there is almost nothing in the account for them to get at. The rest is held for reserves or invested. My main operating account (in a separate bank) is used to pay all expenses for all the rentals.I pay these expenses twice a month and only move enough money into the operating account to cover that months expenses. The money goes into the operating account and bills are paid in the next couple days. The balance in the operating account is kept low as well.

Because of the current things going on in the country and the possibility of problems in the banking system, I think it's a good idea to spread out the money into several different credit unions and banks so that if one or two shut down or mess with/freeze my account I still can go to a different place and get money (hopefully). I also think it's a good idea to have "cash on hand" in several different places, be it physical cash, silver, gold, or whatever that can be accessed if necessary. Just like having extra supplies of food in several locations or a spare place to go to in an emergency (ask the people in Kentucky who got flooded recently or the people in Calif who got burned out in those brush fires).

There is no telling what the govt may do regarding your money so it is our own responsibility to our families and ourselves to take steps to secure and protect our future and freedom and livelihood. --24.180.xx.xx

ideal bank accounts? (by Richard [MI]) Posted on: Aug 9, 2022 10:08 AM

I also have a credit card for expenses that is paid through the operating account only. --24.180.xx.xx

ideal bank accounts? (by Pmh [TX]) Posted on: Aug 9, 2022 5:56 PM

Richard: having separate accounts bc you are afraid of one getting shut down is a little paranoid. banks & credit unions are backstopped.

ideal bank accounts? (by Deanna [TX]) Posted on: Aug 9, 2022 6:50 PM

If you were getting, like, 5% interest on your savings account, that would be one thing, but with rates so miserably low, it doesn't give me the motivation to set aside funds for the purpose of gathering interest.

I like having my brick-and-mortar banks, because if I have a problem, I can show up in person and say, "Excuse me, I have a problem." If I have a really big problem, and I want to withdraw $x, or close my account--- I can do that in person as well. Very old-school, but I'm okay being old-school. :)

I have five biz checking accounts at the moment. They originally started that way when I had my tenants depositing their funds into whichever LLC owned their particular house.

Now that I use ClearNow, most of my funds get deposited into one main operating account to fund renovations and major expenditures. I do have a few legacy tenants who still deposit into the others. One, I use for funds for the handyguy, or for yard care, or unexpected HVAC repairs, or things like that. Another, I let accumulate for property taxes.

I use a 1.5% cash back Capital One QuickSilver for my non-Lowes purchases. For my Lowes purchases, I have a Lowes AmEx that gives me 5% off at the register. I also have a HD card, but almost never use it, since the benefits are erratic and don't always align with my spending patterns. I don't rely on points cards too much nowadays because I've been through the "let's devalue your points" game before (thanks, Chase), and I don't like revolving category cards too much, and I avoid annual fee cards because I don't use the benefits that make the annual fee worthwhile. Sometime when I'm in the mood, I might apply for a 2% cashback card, but I keep waiting for a 3% cashback-on-all-spend card to come on the market.

ideal bank accounts? (by BillW [NJ]) Posted on: Aug 10, 2022 7:48 AM

Richard, I donít have tenants that pay at my bank, itís all through ClearNow, so thatís not an issue. Iíll just have to learn to use an ATM to get cash :-)

You point is well taken about diversifying your savings. I hadnít thought about that before, but it makes good sense in this day and age. Thanks! And thatís what I do too, auto pay my buis credit card out of my buis account.

Deanna, it is low, but Ally bank, for example, pays 1.6% on savings, so if I average 30k in the account, thatís $480 per year, and some dinners out. But yeah not a lot.

Interesting on the lowes amex. I didnít know about that. One thing I like about HD, and I havenít been able to do at Lowes, is a nice on-line record of all purchases in the store with credit card and on line. At purchase with business credit card, HD always prompts for additional information during a purchase, and I enter the property and classify the expense, per IRS guidelines.


ideal bank accounts? (by Landlord ofthe Flies [TX]) Posted on: Aug 10, 2022 10:34 PM

Yes, banks are "backstopped" by FDIC insurance up to $250,000 per person per bank. If you have more than $250k in one or more accounts in same bank, may want to move some to another bank to lower your risk. Investment accounts have greater coverage through SIPIC.

In spite of that, I recommend getting accounts in multiple banks to lower exposure. I have most money in accounts with NO ATM or no autopay services. Those accounts are used to hold money or move it to another account. I have one account used for drafts or autopay, and the smallest account has my ATM / debit card.

ideal bank accounts? (by BillW [NJ]) Posted on: Aug 15, 2022 1:09 PM

Thanks LotF, I just saw this! --74.102.xx.xx

ideal bank accounts? (by Jason [MI]) Posted on: Aug 16, 2022 11:16 PM

I don't keep anything in a savings account.

I have checking accounts at 90% of local banks. When someone makes deposit I zelle it into my main account

I have 1 main checking account that pays 4% an I keep about 10k in it is my comfy spot

Everything else goes towards my line of credits.. pay it down, buy another house, rinse an repeat

Credit card is Alliant 2.5% back an I use for everything

Go where ever get best bang for your buck

An fine your happy spot... for me under 8k in checking I get nervous... over 12k feels like losing money

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