But bank accounts aren't designed to be investment tools. They're merely portals through which your money passes. In other words, you should move enough money into your non interest-bearing checking account to pay your bills each month, and that's about it. A larger reserve should be kept in a money market account, which will pay something on your money, maybe 2 to 4 percent. Not bad, but you could gain a couple of percentage points if you put your cash in a stock money market fund, like those found at Fidelity, Merrill Lynch, and other major brokerage and investment firms.

Here are the accounts you need:

1. Standard checking account. Make sure it requires only a low monthly minimum balance for free check-writing privileges.

2. A money market account in lieu of a savings account. You'll earn more money on your savings. This account does not have to be at the same place as your regular checking account. Indeed, you'll generally get a higher rate of return if your money market account is at a stock brokerage firm.


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