Checking VS Savings

[b4u2]

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]

Yeah, keep the money in the checking account in that case.

[JoePublic3.14]

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]

What credit union is that? Thanks!

[Askel]

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]

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.

[EchoStache]

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]

What credit union is that? Thanks!

Collins Community Credit Union in Cedar Rapids IA

[b4u2]

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]

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