The 4 Accounts You Need to Open

You don’t need 10 accounts. You need 4, each with one job. Here’s what they are and where I keep mine.

1. Checking

The baseline. Your paycheck lands here and your bills come out of here.

Mine is at Bank of America, only because that’s what I opened at 18 and everything is already linked. Look for one with no monthly fee, or a fee you can get waived. Credit unions are a great option too.

2. Savings

This is your emergency fund, and it should live somewhere separate from checking so you don’t see it every day. Big banks usually pay almost nothing on savings.

Use an online high-yield savings account like SoFi, or a money market fund inside a brokerage account. Mine is at Fidelity.

3. Retirement

A Roth IRA, plus a 401(k) if your job offers one. If there’s a match, contribute at least enough to get all of it.

My Roth is at Fidelity. My 401(k) is through my employer.

Bonus: an HSA

Only if you’re on a high-deductible health plan. Money goes in untaxed, grows untaxed, and comes out untaxed for medical costs. It’s the only account with all 3 tax breaks. Mine is through my employer.

The order

1. Checking, so your pay has somewhere to land
2. Savings, and start building the emergency fund
3. Retirement, starting with the 401(k) match
4. HSA, if your health plan qualifies

Ready to put money to work? Start with Your First $100. Everything I use is on my What I Use page.

General education, not advice for your situation.