My savings account will be the least active account, but will be a very important account. The account will do 3 things. First, it will host my emergency fund. This will be 6 months of my income. If there is something that is beyond my ability, and needs addressing now, then I will pull from the emergency fund. However, I will again hope to spend less than what I earn, and that means my checking account should be going up, and not down. If there was an emergency, I will draw on that checking account first. This money will not be used for anything else.
Second, it will hold my taxes. I will have capital gains tax that I will deposit into the savings every month. When it comes time to pay my taxes, I will go to a professional, and when necessary – write a check, or do an electronic transfer. As for the property taxes, I will write a check to the appropriate parties, and pay my property taxes. I don’t see any other taxes as my income is capital gains only, and my property tax is once a year.
The second will be to host my tenant’s security deposit. This will be in a high yield savings account, and I will pay half of the interests I gained to the tenant via a check. This is important as it is required by law that I give a portion of the interests earned in a year to the tenant. I will write the check, and then call her to let her know that there is a check under her door. The goal is to do the legal, and morally right thing to do.