Smart Banking: How to Protect Your Finances with the Right Accounts

Managing your finances isn’t just about earning and spending—it's also about protecting what you’ve worked hard to build. Setting up the right mix of bank accounts can safeguard your money from fraud and even build wealth! From minimizing the risk of theft with specialized checking accounts to maximizing your savings with high-interest options, this guide walks you through the essential accounts you need and how to use them wisely. Let’s take a closer look at how to set up your financial system for security and success.

Regular Checking:
Keep just enough in this account to cover outstanding payments (excluding physical payroll checks). Avoid maintaining a balance over $3,000, as this account is linked to your debit card, making it more vulnerable to fraud.

Payroll Checking:
If you issue physical payroll checks, maintain only the necessary amount to cover outstanding payroll checks in this account. Since checks contain sensitive banking information, limiting activity to payroll makes it easier to identify fraudulent transactions. However, if you use direct deposit for payroll (highly recommended), you can forgo a dedicated payroll checking account.

Savings:
This account should not be linked to a debit card for added security. Consider opening this account at a different bank or using a unique account number separate from your checking accounts. Use it to store most of your funds, such as those earmarked for taxes, future goals, or other savings. Many banks currently offer attractive interest rates, such as 5.5%.

Credit Card (Optional):
Credit cards can be a safer option than debit cards for purchases. If fraud occurs, disputing charges and canceling fraudulent transactions is often easier with a credit card. Use a credit card for online and in-store purchases—or any situation where you swipe or enter card information—to add a layer of protection to your finances. Plus this is the best method to build credit and airline miles - shout out Chase Ink Business!

If you found this information helpful for you and your business, imagine the value of a personalized, in-depth analysis tailored to your unique needs. Our advisory services go beyond the basics to provide a comprehensive view of your business, identifying potential risks, uncovering opportunities, and ensuring your financial systems are optimized for success. Let Fjord Financials guide you toward smarter decisions and a stronger financial future. See our “Services” page and book a free consultation today!