Author Topic: Checking VS Savings  (Read 1062 times)

b4u2

  • Pencil Stache
  • ****
  • Posts: 637
  • Age: 45
  • Location: Cedar Rapids, IA
Checking VS Savings
« on: January 21, 2022, 05:13:42 AM »
My credit union has a deal on their checking account. I earn 2.23% up to $15,000 in checking if I meet certain criteria. I always meet that criteria. My savings account only pays like .05%. Is there any real reason not to keep my money in the checking account to earn the higher interest? Between the two accounts I typically around $15,000.

DadJokes

  • Handlebar Stache
  • *****
  • Posts: 2349
Re: Checking VS Savings
« Reply #1 on: January 21, 2022, 05:25:02 AM »
Yeah, keep the money in the checking account in that case.

JoePublic3.14

  • Bristles
  • ***
  • Posts: 257
Re: Checking VS Savings
« Reply #2 on: January 21, 2022, 05:41:43 AM »
Yes, without a doubt, if you are keeping that much cash, keep it in checking.

And, if your location is accurate, do not go outside this morning.

cool7hand

  • Handlebar Stache
  • *****
  • Posts: 1233
Re: Checking VS Savings
« Reply #3 on: January 21, 2022, 07:48:03 AM »
What credit union is that? Thanks!

Askel

  • Pencil Stache
  • ****
  • Posts: 642
Re: Checking VS Savings
« Reply #4 on: January 21, 2022, 08:43:21 AM »
My credit union has a deal on their checking account. I earn 2.23% up to $15,000 in checking if I meet certain criteria. I always meet that criteria. My savings account only pays like .05%. Is there any real reason not to keep my money in the checking account to earn the higher interest? Between the two accounts I typically around $15,000.

Only argument I can see against it is if there's a debit card linked to that checking account that you make extensive use of or you still write lots of paper checks.   Opens you up to a bit of fraud risk. Ultimately it would probably resolve in your favor, but would be a hassle. You should be using credit cards anyway.   

And if those checking and savings accounts are linked, the savings account still wouldn't be any safer anyway.   

SpaceCow

  • 5 O'Clock Shadow
  • *
  • Posts: 88
  • Age: 28
  • Location: Michigan
Re: Checking VS Savings
« Reply #5 on: January 21, 2022, 09:40:43 AM »
That's exactly what I do. My credit union pays 4.07% on the first $7,000. As a single person with low COL, that's most of my emergency fund. I do not use my savings account.

UltraStache

  • Bristles
  • ***
  • Posts: 424
Re: Checking VS Savings
« Reply #6 on: January 23, 2022, 09:28:03 AM »
This is the first I've heard of these high yield checking accounts.  I searched credit union high interest checking and found one that pays around 2% without strings attached other than direct deposit, 3% if you spend $500/month on their credit card, and 4% if you spend $1,000/month on their credit card.  Sounds like an awesome deal if you just set up a $1,000+ payment on their card, like mortgage or something.  Easy way to make 4% on 10k worth of emergency fund.  I'm tempted to do this for the $400/year free money vs the $50 I'm making in my "high yield" savings.

Then again, its another layer of complexity for $350/year.  Would be a lot of work to switch all accounts over.

That's still a crazy good rate compared to the current norm.

b4u2

  • Pencil Stache
  • ****
  • Posts: 637
  • Age: 45
  • Location: Cedar Rapids, IA
Re: Checking VS Savings
« Reply #7 on: January 24, 2022, 08:55:41 AM »
What credit union is that? Thanks!

Collins Community Credit Union in Cedar Rapids IA

b4u2

  • Pencil Stache
  • ****
  • Posts: 637
  • Age: 45
  • Location: Cedar Rapids, IA
Re: Checking VS Savings
« Reply #8 on: January 24, 2022, 08:59:40 AM »
My credit union has a deal on their checking account. I earn 2.23% up to $15,000 in checking if I meet certain criteria. I always meet that criteria. My savings account only pays like .05%. Is there any real reason not to keep my money in the checking account to earn the higher interest? Between the two accounts I typically around $15,000.

Only argument I can see against it is if there's a debit card linked to that checking account that you make extensive use of or you still write lots of paper checks.   Opens you up to a bit of fraud risk. Ultimately it would probably resolve in your favor, but would be a hassle. You should be using credit cards anyway.   

And if those checking and savings accounts are linked, the savings account still wouldn't be any safer anyway.

Very few paper checks get written but I do have a debit card. The savings is not linked to checking but it linked to the debit card. I believe par of the interest deal is that you have to have so many transactions using the debit card to get that higher interest. I'll have to ask the CU for more information on it.

What credit card do you use for purchases? I assume something with cash back?

b4u2

  • Pencil Stache
  • ****
  • Posts: 637
  • Age: 45
  • Location: Cedar Rapids, IA
Re: Checking VS Savings
« Reply #9 on: January 24, 2022, 09:08:27 AM »
Here is the info from my CU.

Receive a bonus rate of 2.25% APY* on balances up to $15,000 when you… Sign up for eStatements ​​Login to Online Banking or use the Collins Mobile App at least once a month Have at least one monthly direct deposit of $100 or more into your Advantage Checking Account Use your Visa® debit card at least 15 times during the month on purchases of $5.00 or more