Types of Accounts
Money has the ability to move quickly both into and out of your hands. The following is a short list of financial products available to you along with my interpretation of their usefulness and appropriate application.
Although financial institutions offer a wide variety of products it is often they only specialize in doing a few of them well. Due to this you may require several accounts spread over multiple financial institutions in several countries to complete a full financial picture that is custom built for your needs.
Checking Accounts
In this account you should maintain at least two months worth of expenses. For security purposes you should maintain two checking accounts held at two separate financial institutions in every country you operate. If you are locked out of your checking account you will have a fully functioning backup ready to go. Never utilize a debit card as this allows a thief direct access to your account if the debit card information is compromised. Never being issued a Debit Card is the safest option. You can choose between the Credit Unions, Online Banks, and Traditional Banks all of which are equally safe.
Credit Unions are on average a better bet for the vast majority of people. They provide lower rates on loans and higher rates on deposits. Choosing a credit union that participates in the Co-Op network makes nearly every credit union your credit union.
Online based banks like Ally are equally safe as the traditional banks due to government regulations and monitoring. The lack of physical footprint provides the advantage of low overhead allowing for better deposit rates. Tech savvy customers will find online banks better suited to handle remote banking requests due to the online banks focus on technology.
Traditional Banks are not that great for anything. They are for customers that deal with cash frequently and those that desire to walk into a banking center to handle their banking. Depending on the electronic services you utilize, larger banks may have an ease of connectivity with certain platforms such as Zelle, crypto platforms and the SBA. This is simply because they have a larger back office team with more money to spend on technology infrastructure.
Saving / Money Market / CD / High Interest Saving Accounts
Savings accounts are where you should maintain 6-12 months worth of expenses as an emergency fund. These funds are meant to be placed in an account with no risk of fluctuation and provide quick easy access to a safety net. A savings account by any title is not used as a means of accumulating interest but more as a means to prevent spending. When looking for a savings account with quick access and high interest rate, think on a global scale. A savings account can be held in a very liquid account in another country in USD or foreign currency denomination that earns a greater rate of return but still maintains quick access. (Currency fluctuations and conversion rates are an added risk)
Bonds
I-Bonds, EE-Bonds and Government Bonds are no longer useful. (2025)
Credit Cards1
ABSOLUTELY NEVER HOLD A BALANCE on any credit card. Balances should be paid off monthly preventing any interest accumulation. These products are to be used to add a layer of security to your transactions as most credit cards provide protection against fraud. If a credit card is used to make fraudulent transactions you are not held liable nor is any of your money restricted while the investigation takes place. Making your purchases on a rewards credit card provides a small percentage return on each purchase by accumulating points.
If you are unable to control your spending, get a Secured Card or Prepaid Card. A secured credit card is backed by a savings account held as collateral at a bank. A prepaid credit card works similar to a debit card.
If you have a substantial amount of credit card debt with high interest rates you might need to use your credit cards to pay off your credit cards. You can do this by acquiring a new credit card that has a promotional balance transfer option of 0% interest-rate for as long as available. Transferring all of your debts from highest to lowest onto this new credit card will provide a window of opportunity to pay off your debts while having a reduced rate.
Brokerage Accounts2
In a brokerage account you can buy Stocks, Exchange-Traded Funds (ETF) and possibly Cryptocurrencies depending on the broker all at zero commission. Also depending on the broker they might have the best saving accounts rates for money sitting idle. The page titled Money Active Investments will inform you of a few methods of how to structure the components within your portfolio.
Alternative Investments
There is no limit to the forms of alternative investments ALL of which you do not need. This includes passive businesses, rental properties, investment schemes, active trading strategies, stock options, penny stocks, altcoins, and so on. (*Bitcoin is becoming an acceptable “alternative investment” to be added to the portfolio.)(2025)