Author Topic: How low is too low - everyday account balance  (Read 3545 times)

mrs.zara

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How low is too low - everyday account balance
« on: February 23, 2016, 10:19:56 PM »
Hi
Im in Australia. In order to maximise the interest gains on my saving account, I'm trying to figure out a sensible balance to keep in my everyday account as a rule of thumb. Is $1000 too much "in case of emergency"? Is $250 per week too low? Or maybe even keep a reasonable amount of cash on hand in case of a true emergency.

The everyday account is linked to my bankcard, direct debits come out another account, also I use a credit card to buy groceries. I can easily transfer between accounts if needed (no fees or penalties).

Sorry to ask a question I'm sure some would say only I can answer; however I really appreciate the MMM perspective so thought it wouldn't hurt to ask :)

Thanks all

arebelspy

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Re: How low is too low - everyday account balance
« Reply #1 on: February 23, 2016, 10:39:20 PM »
Lots of responses to this question here, should give you plenty of reading/people's perspective on it:
http://forum.mrmoneymustache.com/ask-a-mustachian/your-checking-account-balance/

:)
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mrs.zara

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Re: How low is too low - everyday account balance
« Reply #2 on: February 24, 2016, 04:59:50 AM »
thank you :)

JLR

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Re: How low is too low - everyday account balance
« Reply #3 on: February 25, 2016, 12:28:31 AM »
Just set up the ING accounts you were thinking about in the other thread. Or ME Bank have a reasonable offer, too, though it was better last year when they were offering 5%  cash back.

I only keep the weekly grocery money in my account. Everything else is earning interest. If a bill comes in I just transfer some money from my interest bearing ("bill savings") account so I can pay the bill.

deborah

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Re: How low is too low - everyday account balance
« Reply #4 on: February 25, 2016, 03:39:59 AM »
I think you should put "Australia" in the topic, because we have a very different banking system to the Americans.

I keep everything in the internet bank account, and only move money to the everyday account when I am going to use it - about once a month (if that).

alsoknownasDean

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Re: How low is too low - everyday account balance
« Reply #5 on: February 25, 2016, 05:00:17 AM »
I have both my savings and transaction accounts with the same bank (ING), so I can virtually instantly transfer between the two if needed.

I have it set up so that $350 of my (fortnightly) pay goes into the transaction account, and the remainder into the savings account.

I've got a smartphone so transferring money between accounts is super quick, and in a pinch I could get cash from my credit card (but  I'd rather not due to interest).

I use the savings account as my emergency fund (and I like to keep at least $5000 there, but currently I don't). All of my bills (except rent) are autopaid with the credit card, and I've got the savings account set to transfer the rent to the transaction account on the day before it's direct debited.
« Last Edit: February 25, 2016, 05:06:31 AM by alsoknownasDean »