Bank Accounts

I realised that I might be having a bit too many bank accounts and credit cards.

Lately, I forgot to settle one of my credit card bills and ended up with a late payment charge of $40! And that was for a credit card bill of just $80!

Are all these bank accounts necessary? I certainly think so.

Here is how I use all my bank accounts.

POSB Savings Account

This is my primary account which is linked to all the Giro, electronic payment for shares and stuff. It is basically the account which is linked to my ATM card and which I use to pay the bills.

POSB Current Account

This is the checking account which lets me write cheques. I pay $2 each month to maintain this account.

Citibank Step Up Interest Account

This is where my salary is credited. Based on the step up interest, I can earn close to 0.75% interest on my deposits. I will then transfer whatever amount of my pay I need into the POSB Savings Account to spend.

MayBank iSaavy Account

This is my emergency fund account which pays interest of up to 0.5% per annum. I hardly touch the money in here at all. I like this account because of the higher deposit rates it gives compared to other banks.