Money Management

You don’t need to — but you might want to. 

You need a checking account so you have a way to pay your bills. And you need money in a savings account so you can sock funds away for different goals and have cash reserves to tap for emergency expenses.

But do your checking account and savings account need to be held at the same bank? The quick answer is no.

There’s no rule stating you have to keep both types of accounts open with the same institution. But there’s a big benefit to having a checking account and savings account at the same bank.

When you need to move your money in a pinch

You might have money in your savings account that serves as your emergency fund. And you might use the money in your checking account simply to pay your near-term bills.

A lot of people don’t keep extra money in a checking account because it often doesn’t earn interest, so they figure they might as well only keep enough cash to pay their immediate expenses. But what happens if you suddenly need to write a $2,000 check to cover a home repair?

If you have your checking and savings accounts at the same bank, you might be able to instantly transfer money between the two to cover that check. But if you have your checking and savings accounts with different banks, your transfer could take several business days to go through, leaving you at risk of overdrawing your checking account or having your check bounce.

That’s a big reason why it pays to choose the same bank for your checking account as well as your savings. You get the convenience of being able to seamlessly transfer funds around — usually in an instant.

A good reason to keep your checking and savings accounts at different banks

In some cases, you may not want to use the same bank for your checking and savings accounts. Let’s say you’re hoping to score a nice interest rate on your savings. But let’s say you also want a checking account that gives you access to nearby branches and a large, convenient network of ATMs. You may not get what you want by using the same bank.

Imagine a local bank you really like and want to use for your checking account. Maybe the branch is around the corner from where you live and has great hours. But if that bank is only offering, say, 2.5% interest on savings accounts, you’ll be selling yourself short by keeping your savings there. That’s because many savings accounts are paying 4% or more these days — especially those offered by online banks. So in this case, keeping your checking and savings accounts together could mean losing out on interest.

But if you find a bank that offers competitive interest rates for savings accounts and CDs, and it also gives you the perks you’re looking for in a checking account, then opening both accounts with the same institution could be beneficial. So it pays to consider making your life easier and going this route as long as it makes sense financially.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You may want to consider it. 

It’s estimated that 166.5 million U.S. adults wear prescription eyeglasses, according to The Vision Council. If you’re one of them, then ideally, you have money set aside in your savings account, or in a dedicated healthcare spending account, to cover the cost of replacing or updating your glasses regularly.

Even with vision insurance, the cost of eyeglasses can be burdensome. And it’s hard to nail down an average cost of eyeglasses because there are so many factors that dictate price, such as insurance coverage, your specific prescription (meaning, how much vision correction you need and what conditions you might have), and the frames you choose.

It’s always a good idea to shop around for eyeglasses when you need new ones. But you may want to consider getting your next pair from Warby Parker.

How Warby Parker works

If you happen to live near a Warby Parker location, you could always head into the store, try on different glasses, choose a style, and pick up your glasses when they’re ready. But if you don’t live near a Warby Parker, worry not. The process of ordering glasses to try on at home is really easy.

What you’ll do is browse the site and check out the different styles Warby Parker has to offer. You can even start by taking a short quiz that asks questions about things like the size and shape of your face to get some personalized recommendations.

From there, all you need to do is choose up to five pairs of eyeglasses to have shipped to your home at no cost — though you will need to leave a credit card number on file in case you fail to return your try-on pairs. These glasses will have non-corrective lenses — you’ll simply be trying them on to see if you like how they look and feel. Once you’re done with your at-home try-on session, you’ll simply send back your pairs in the packaging and pre-addressed label Warby Parker provides.

From there, if you want to order a pair of glasses, you simply complete that purchase on Warby Parker’s website. You even do a virtual eye exam and get a new prescription through Warby Parker for just $15 if you need one. From there, you just sit back and wait for your new glasses to arrive at your doorstep. It’s that simple.

Does Warby Parker have the best prices?

The prices Warby Parker offers are competitive. Eyeglasses start at just $95, and you’ll get a 15% discount for ordering a second pair. Prescription sunglasses cost a bit more. However, you might end up paying more than $95 if you need progressive lenses, or if there are other adjustments you want to make to your lenses, like ordering thinner lenses (an option that’s sometimes recommended for people with strong prescriptions).

Your best bet, if you’re looking to get a great price on eyeglasses, is to shop around and compare your options. If you have a Costco membership, for example, you might find that you can pay even less for eyeglasses there. However, Costco may not have the same selection as Warby Parker, which is known for its trendy frames.

Does Warby Parker let you use an FSA or HSA?

Yes! If you have money sitting in a flexible spending account or health savings account, you can use those funds to pay for prescription eyeglasses at Warby Parker. And if you forget to use your FSA or HSA card when ordering your glasses, you can always submit your receipt to your plan for reimbursement after the fact.

All told, ordering eyeglasses from Warby Parker is super easy, and there could be some big savings involved. It’s worth checking out their selection and doing an at-home try-on if you come across frames you like.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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