Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 4605

Personal Finance (Not Investing) • Checking account cushion: keep higher balance in checking or get low yielding savings at mega bank?

$
0
0
You have two issues. Optimizing the interest on your money and being protected against fraud.

It sounds like you are only figuring out what to do with around $5,000 so at 4% you might only miss out on $200 a year if you keep it in a low interest account. To me the convenience of not needing to constantly juggle money is worth $200.

As far as fraud on a checking account if you do not have a debit card, or have it locked an never use it, that eliminates most problems.

I do most of my bill paying either online or pay with a credit card so I have only written about 10 checks in the last year and that was because I was doing remodeling and paying contractors. In a normal year I might only write 3 or so paper checks and I mail them inside at the post office so I likely do not have much fraud risk.

Statistics: Posted by Watty — Sat Sep 14, 2024 10:39 pm — Replies 14 — Views 620



Viewing all articles
Browse latest Browse all 4605

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>