Self Help

But bank accounts aren’t designed to be investment tools. They’re merely portals through which your money passes. In other words, you should move enough money into your non interest-bearing checking account to pay your bills each month, and that’s about it. A larger reserve should be kept in a money market account, which will pay something on your money, maybe 2 to 4 percent. Not bad, but you could gain a couple of percentage points if you put your cash in a stock money market fund, like those found at Fidelity, Merrill Lynch, and other major brokerage and investment firms.

Here are the accounts you need:

1. Standard checking account. Make sure it requires only a low monthly minimum balance for free check-writing privileges.

2. A money market account in lieu of a savings account. You’ll earn more money on your savings. This account does not have to be at the same place as your regular checking account. Indeed, you’ll generally get a higher rate of return if your money market account is at a stock brokerage firm.