When You Should Get Rid of Your Savings Account

People often get a checking account in addition to their savings account, or vice versa, hoping to get 'free' versions of money tracking and spending. I myself have a savings account that is supposed to have a $300 balance every single month to avoid a $4 'maintenence fee' every single month (key.com). For whatever reason you have a savings account, you need to know when you should get rid of it, and why.

For starters, if you are constantly transferring money out of your savings into your checking to avoid overdraft fees, then you aren't going to be accumulating any interest in your savings, and you're just wasting your time to begin with. If your savings account is merely a storage unit for the emergency funds you need in your other accounts, then just put that money in your other accounts and cancel out your savings account that may have service fees when you don't have enough money in it.

If your savings account requires a minumum balance to avoid fees, then get rid of it if you can never keep that balance. I literally only have a savings account to pay my bank $4 a month. I have a 0 balance the rest of the time, and am constantly transferring money from my checking account to cover this stupid fee. Like so many other people, I keep this account simply because I think someday I will have enough money in my savings.

If your savings account isn't tied to your checking account in any way and you're not using it, just cancel it. Unless you plan on actually putting money into your savings account anytime soon, all you're doing is maintaining an account that is useless to you. You never know when your bank will suddenly start charging you to have a savings account you've forgotten you even have. Better safe than sorry.

Basically, if your savings account isn't making you money, or is even costing you money, then you should get rid of it. With banks constantly on the lookout to find more and more reasons to charge you for their services, you don't want to be caught with overdraft fees because you have neglected to properly fund your account that you don't even benefit from. If you aren't really using your savings account, then by all means, cancel that bugger out!