Banking: where your money sits, and what it earns

Beginner · 37 min · 5 lessons

Which account for which money, how to choose a bank, the fees that quietly remove hundreds a year, and what deposit insurance actually covers.

1. 1

   Which Account for Which Money

   Three jobs, three different places

   Lots of people keep every dollar in one checking account paying almost nothing, or leave 20-year money sitting in savings. Giving each dollar the right home costs nothing, takes one afternoon, and is often worth hundreds of dollars a year.

   Beginner · 8 min

2. 2

   Choosing Where to Bank

   Online, traditional, or credit union

   Where you bank sets your interest rate, your fees, and how easily you can reach a branch or ATM. The account most people never question, the big-bank account opened as a student, is often the worst deal on both rate and fees.

   Beginner · 8 min

3. 3

   Overdraft, and the Fees Nobody Reads

   Opt out once, save hundreds

   Overdraft "protection" on debit card purchases only exists if you said yes to it, and many people said yes at account opening without anyone explaining the trade. Saying no costs nothing and stops a $4 coffee from costing $39.

   Beginner · 8 min

4. 4

   CDs, Yields and Locking Money Up

   When giving up access is worth it

   A CD trades liquidity for a slightly higher, guaranteed rate. That trade is good for a known future expense and bad for an emergency fund, and people routinely get it backwards.

   Intermediate · 5 min

5. 5

   What Deposit Insurance Covers

   $250,000, per depositor, per bank, per ownership category

   Every word in that subtitle matters. When Silicon Valley Bank failed in 2023, most of its deposits were above the insurance limit. Regulators chose to cover everyone that time, but nothing obliges them to next time. People who misread the rule, or who assume brokerage cash is covered the same way, are exposed in exactly the moment insurance exists for.

   Intermediate · 8 min

Intermediate · 32 min · 4 lessons

How to compare yields properly, when locking money in a CD is worth it, and the money market and Treasury options for larger cash balances.

1. 1

   Comparing Yields Without Being Fooled

   APY, teaser rates, and the fine print

   Banks compete for your cash with numbers built to look bigger than they are: teaser rates that expire, "up to" rates behind hoops, and high rates on only the first few thousand dollars. Knowing the three tricks means the headline number can never fool you again.

   Intermediate · 8 min

2. 2

   CDs and Laddering

   When giving up access is worth it

   A CD swaps access to your money for a guaranteed rate. That swap is great for a dated expense, like a wedding or tuition bill, and terrible for an emergency fund. People get it backwards all the time, and the early withdrawal penalty is how they find out.

   Intermediate · 8 min

3. 3

   Money Market Funds and Treasury Bills

   The options for larger cash balances

   Once your cash grows past a normal emergency fund (a down payment you are saving, a windfall, a business reserve), small differences in yield and tax become real money. Money market funds and Treasury bills can pay more than an average savings account, with similar safety, and Treasury interest escapes state income tax.

   Advanced · 8 min

4. 4

   FDIC Coverage Beyond $250,000

   Pro

   Ownership categories, multiple banks, and sweep networks

   The "$250,000 limit" is not a ceiling on what one bank can insure for you. It applies per depositor, per bank, per ownership category. Knowing the real rule lets someone holding a large sum (an inheritance, a home sale, a business reserve) stay fully covered without juggling a dozen accounts.

   Expert · 8 min