Week 2 · 40 minutes

Beat the Banks

Build a no-fee, high-interest banking setup you never think about again.

The big idea

Most people donate money to their bank through fees and near-zero interest. The fix is a two-account structure you set up once.

Understand high-yield savings accounts — and which banks to avoid.

The two-account setup

Use a no-fee checking account as your inbox for money, and a separate high-interest savings account as your storage. Separation creates friction that protects savings.

  • Checking: no monthly fees, no minimums, no overdraft traps
  • Savings: highest available rate, at a different institution if possible
  • Sub-savings goals: emergency fund, travel, gifts, big purchases

Fees are a choice

Overdraft, maintenance, and ATM fees are negotiable and usually reversible. Ask once, politely, and be willing to leave.

  • Script: "I noticed a fee — I've been a customer for X years and I'd like it waived."
  • If refused twice, switch banks; the whole move takes about an hour

Your emergency fund

Aim for three to six months of essential expenses in savings. This is insurance, not investment — the point is boredom and instant access.

1-3-6 method for building your emergency fund.

Active learning check

Name your current checking and savings institutions and the exact interest rate on your savings.

If the rate is below ~3–4% in a normal-rate environment, you're leaving money on the table.

Lesson quiz

3 of 4 to pass
  1. 1. What's the main job of your savings account?

  2. 2. Why keep savings at a different bank from checking?

  3. 3. Your bank charges a surprise maintenance fee. First move?

  4. 4. How large should an emergency fund typically be?

Practice tasks for this week

Do these after the lesson, before you start Week 3.

  • Open the HYSA I use