Gail Vaz-Oxlade Question...

[Amanda83]

I live by Gail Vaz Oxlade's budget and "Jars" IT works wonderful and has really taught me to stick to my budget over the last 2 years and when the cash is gone, it's gone. However I do have a questions about "sub accounts" or if that's what they are called. I have my emergency money, car repairs, medical, clothing/gifts, ect money building up and would rally prefer to have it just auto transferred into an account off of my bank account rather then it sitting in our house. But I don't know what this is called and don't want to sound like I don't know what I am talking about, when I go tot he bank....anyone know what these accounts are called and are they fee free? I believe Gail says you can have as many as you like...I bank with BMO if that makes a difference.

PS I have "Debt Free Forever", so if you have a page reference, I can look it up, I have been re-reading the book but can't seem to find what I am looking for.

[snow00774]

If you have a minimum balance of $1k to open these accounts then you could get the premium rate savings account and no fees. Otherwise probably looking at smart saver account no minimum balance and only one withdrawal a month allowed.

You could also go with a tax free saving account but you should speak to the rep about the suitability of that other than the high interest rate on your reserve money.


None of those accounts are accessible by debit card which is nice for keeping money IN them, and I know at TD a regular transfer from one account to another is a personal transfer or automatic transfer - they will know what you are talking about if you just say you want to set up a regular transfer from your primary account to your (whichever savings accounts you go with).

Great job....wish we were there but not yet!

[Amanda83]

If you have a minimum balance of $1k to open these accounts then you could get the premium rate savings account and no fees. Otherwise probably looking at smart saver account no minimum balance and only one withdrawal a month allowed.

I'd rather not have them locked in with the minimum balance at this pont in case I have to with drawl it all....hence the funds....emergency, medical, ect. it's bound to be used. Once I have more of savings or amounts saved in each category I'd love the interest on this money

You could also go with a tax free saving account but you should speak to the rep about the suitability of that other than the high interest rate on your reserve money.

Thanks! Is this something the teller can do, or do I need an appointment?

None of those accounts are accessible by debit card which is nice for keeping money IN them, and I know at TD a regular transfer from one account to another is a personal transfer or automatic transfer - they will know what you are talking about if you just say you want to set up a regular transfer from your primary account to your (whichever savings accounts you go with).

That's good, I figure if I use either my other "cash" or my CC for those expenses then I can with drawl the money I may need each month and pay it off. Perfect thanks for all the tips!

Great job....wish we were there but not yet!

Thanks, I am on my way! Still have student debt and am going back to school in January ( so more student debt). You will get there, even if it's just $50 a month...it all adds up

.

[Insane]

You can look at TFSA (Tax free savings accounts).

Our family has 2 things...a savings account. It's with PC, so no fee. And mutual funds. Low risk, sorta nothing mutual funds. It earns a bit of interest, but it's pretty low risk (I wanna say Money Market?). The money has to stay put for 30 days once you put it in I think before you can withdrawl it.

I would make an appt with your bank and just tell them you need somewhere to sock away your emergency money. They'll help you out.

[Zonny]

We bank with Royal Bank. We've met with a financial advisor at the bank for free and she helped us plan some things, see how we're doing for RRSP/RESP, etc.

[ahatt]

I'd suggest opening a TFSA with ING Direct. They give you 2% interest, and there are no minimum deposits and your money is not locked away. Both my DH and I have multiple TFSA'S with ING. Each one we can give a name, so for example I have a "Car Maintenance TFSA", "Emergency Fund TFSA" and DH has "Yearly Expense TFSA" and "Education TFSA". You just have to make sure you don't exceed your contribution limit for the year for the total amount you are contributing to all of your TFSA accounts combined (you can open as many accounts as you want). I find this method easy, because my money is accessible but not as easily accessed if I had savings accounts with my primary bank. Keep in mind it can take 1-2 business days to transfer money in and out of the ING accounts, but it's a good option for car maintenance and any money you're accumulating that won't need to be accessed too often.

[blessedmommy]

I'd suggest opening a TFSA with ING Direct. They give you 2% interest, and there are no minimum deposits and your money is not locked away. Both my DH and I have multiple TFSA'S with ING. Each one we can give a name, so for example I have a "Car Maintenance TFSA", "Emergency Fund TFSA" and DH has "Yearly Expense TFSA" and "Education TFSA". You just have to make su
re you don't exceed your contribution limit for the year for the total amount you are contributing to all of your TFSA accounts combined (you can open as many accounts as you want). I find this method easy, because my money is accessible but not as easily accessed if I had savings accounts with my primary bank. Keep in mind it can take 1-2 business days to transfer money in and out of the ING accounts, but it's a good option for car maintenance and any money you're accumulating that won't need to be accessed too often.

n

I total agree!

[snow00774]

.

The BMO TFSA is something you should set up through an appointment, they'll have to go through various account opening jargon with you so espeically if you want to opem multiples of this account for various things plan to set aside 30-45 mins.

The ING version of the TFSA is great, except for the 1-2 days to access the money if you need it in a hurry and don't have enough to 'borrow' from in your daily cash account. For that reason if your not comfortable with that potential wait you can open it at BMO, however the interest rate isn't as good as ING. Currently it is 1.15% for under $5k, you can access without fees however you can't use a debit card so that's good!




Good Luck, and good luck with school

[save_girl]

I live by Gail Vaz Oxlade's budget and "Jars" IT works wonderful and has really taught me to stick to my budget over the last 2 years and when the cash is gone, it's gone. However I do have a questions about "sub accounts" or if that's what they are called. I have my emergency money, car repairs, medical, clothing/gifts, ect money building up and would rally prefer to have it just auto transferred into an account off of my bank account rather then it sitting in our house. But I don't know what this is called and don't want to sound like I don't know what I am talking about, when I go tot he bank....anyone know what these accounts are called and are they fee free? I believe Gail says you can have as many as you like...I bank with BMO if that makes a difference.

PS I have "Debt Free Forever", so if you have a page reference, I can look it up, I have been re-reading the book but can't seem to find what I am looking for.

BMO allows you to have several accounts all under the same plan fee (I think you can have up to 20 accounts) so if you already bank at BMO it is easy to open additional accounts at no additional cost.

A TFSA is a great idea for long term savings that you don't need regular access to, as you can earn more interest than a standard savings account. Just make sure you are familiar with all the details - there's a maximum you can deposit in the year, and there are different ways you can invest the money in the account. This means you can have more or less risky options, and lower or higher possible interest returns. But also, some options have more restrictions on pulling the money out again, so if it is an emergency fund make sure to consider that. Someone at the bank can walk you through all the options and details.

If you want a more standard account where the money is always available (and can optionally be accessed by debit card or online banking) definitely talk to your branch about opening a secondary account under your existing plan. I have two savings accounts, a chequing and a joint chequing all under a single plan fee at BMO and find it very convenient (plus I love BMO's Money Logic for tracking savings goals and where $$$ are spent, which combines the info from all of my accounts).

[Amanda83]

Thanks everyone for all the great pointers and advice I really appreciate it!!!

[Amanda83]

Good Luck, and good luck with school

Thanks!!!

[Eeyah]

Scotia also allows you to have "online only" accounts - as long as you transfer everything online, I've got 5 one them for assorted funds. I have all the amounts automatically withdrawn on payday (emergency fund/car repairs/vacation etc) then when I need the money (ie. oil change) then I just transfer it to my chequing account.
I guess it depends which bank you use, DH & I have stuff with CIBC also, and from what I can tell from their website (which I think is crappy) is that they don't offer online accounts, so guess you may have to do some research

[ame555]

I'd suggest opening a TFSA with ING Direct. They give you 2% interest, and there are no minimum deposits and your money is not locked away. Both my DH and I have multiple TFSA'S with ING. Each one we can give a name, so for example I have a "Car Maintenance TFSA", "Emergency Fund TFSA" and DH has "Yearly Expense TFSA" and "Education TFSA". You just have to make sure you don't exceed your contribution limit for the year for the total amount you are contributing to all of your TFSA accounts combined (you can open as many accounts as you want). I find this method easy, because my money is accessible but not as easily accessed if I had savings accounts with my primary bank. Keep in mind it can take 1-2 business days to transfer money in and out of the ING accounts, but it's a good option for car maintenance and any money you're accumulating that won't need to be accessed too often.

Same here -- i have the accounts set up and transfer about $10.00 to each! (weekly)

[marstec]

I personally wouldn't use a TFSA for an emergency fund unless you are very good at keeping track of what goes out of it, and when. Many people got a nasty shock last year from the government saying they over-contributed and were assessed penalties. I use mine as a long term retirement/savings account.

I hate banks that nickel and dime you to death, so I understand your need to keep fees low. Depending on how many products you have at your bank, they may give you a rebate on your banking. I'm with RBC and have a package that costs $10.95 per month that is rebated back in full, so no fees.

[xox2010]

@marstec: That's what's going to happen to me next tax year I wasn't keeping track of how much I took out for my tuition etc!