I just opened a bank account with a bank in New York. It's new and FDIC insured. It doesn't have a checking account and it's more of like a high yield account. I'm going to set up direct deposit to be deposited into the account. It's a online bank that offers high interest rates. I'm just wondering if this will cause some problems. I know I have to buy stuff so how would I set it up this way. The only way to get funds from it is by going online. So would I direct deposit a certain amount and get paid in cash a certain amount? Right now I have a BBandT account open, but it doesn't pay enough interest to keep ground with inflation. Thanks.

When you set that account up, did you read all the fine print on your application?

What exactly is the interest rate?

You're probably better off having your checking account set up with a local or more easily accessible bank, especially while enlisted.

I read the disclosures, terms of agreement, FAQ, you name it. I've already got a local bank account open. So let's say the military requires me to pay for something during boot camp. They could just deduct it from my payroll before they deduct for direct deposit right? I talked to my dad who's a military veteran and he said something about taking $100 cash before they direct deposit it into my bank account. I don't know how the financial team in the Navy operates. How would I set up direct deposit for both banks when I don't know how much I'm going to realize monthly? That's where the heart of my challenge is. Thanks again.

First, I highly suggest you take the advice of "MortgageGuru."

Second, any non-Military related essentials that the Navy provides you WILL be deducted from your pay. Those items, but not limited to, are: toiletries, shaving gear, sewing kit, shoe polish, toothpaste, toothbrush, writing paper, postage stamps, possibly tobacco (if you're permitted and they have no probs with it), skivvies, ink pad w/name stamps (for your skivvies and uniforms for laundry purposes), towels, etc.

Being young on my very First day in Boot Camp on "The Island," I was issued all types of nifty things that I thought were free, but after my first pay I realized they were not. I never asked and they didn't tell, until it was too late.

Wow, $100? It was a whole lot less back in 196....oh Jeez, I'm a lot older then I thought.

Third, I'm unsure, but I suggest you hook up with your Paymaster and then decide how you wish your pay dispersed, but as "MortgageGuru" indicated, it would be much easier if you set up an account with a local bank, at least until you get settled in. Back in my time, there was no such thing as Direct Deposit.

Best of Luck!

Which bank is it? Online banking is great because of the higher interest rates than brick and mortar banks. However, as you've discovered, it can make getting at your money in a hurry a bit of a challenge. There are a couple of alternatives.

1 - ING Direct offers decent interest (though no longer the highest) as well as a checking account. But, the checks are electronic, not paper so that may not help. They also do not offer a debit card or any other way to access your money. Generally you have a separate account that you transfer to and from when you need cash.

2 - HSBC has some of the highest rates and is also a B&M bank so you can get an ATM card, have a checking account, etc. This may be your best option.

3 - There are other banks like Emigrant, NetBank, Etrade, etc which offer competitive rates and various other methods of getting at your money so you may want to look into them.

I don't necessarily think you need to have a "local" bank as long as you have ATM access with reasonable coverage so you can make deposits and withdrawals as necessary.

Good luck!

A "local" bank won't nickel and dime you to death with all of the ATM fees that one would have if they were there using an out of the area or internet bank. Fresh in the military, you are making jack $#@$ for income. Keep your money where you can get to it the easiest.

Perhaps, but my credit union is in Arizona and I haven't lived there in over 7 years (including 14 months over seas) and haven't paid a penny in fees that entire time. So, there are ways around that. Personally I don't like banks in general and will never use one if I can avoid it. I'll stick to credit unions. Their fees (if you have to pay them) are generally lower, they don't charge for ATMs, and I've yet to be in a city where I couldn't find one to use.

You cannot set up a direct deposit to two accounts. What you can do is have a direct deposit to the high interest account with an allotment to your local checking account.