Using checking account as savings

Usually saving accounts have higher interest rates than checking accounts. However, in this market rates are laughable. Only other advantages are that saving accounts aren't tied to check cards meaning if you lost your card or have no self control, you can't blow all your dough.

Quote from specialmoose : Usually saving accounts have higher interest rates than checking accounts. However, in this market rates are laughable. Only other advantages are that saving accounts aren't tied to check cards meaning if you lost your card or have no self control, you can't blow all your dough.

The interest rate for my credit union checking account is higher than the interest rate for my "big bank" savings account.

I know what you mean about the possibility of danger with those funds being in a checking account. I do not use the credit union account as my main account since my direct deposit from work is tied to my "big bank", so I could easily continue to use that for my daily transactions and I wouldn't have to carry my credit union card around.

Does that change your recommendation at all?

Quote from specialmoose : Usually saving accounts have higher interest rates than checking accounts. However, in this market rates are laughable. Only other advantages are that saving accounts aren't tied to check cards meaning if you lost your card or have no self control, you can't blow all your dough.

pretty much my thoughts as well, checking accounts are bottle of the list for interest but since you have close to 1% (yes its sad) but its one of the higher ones.

Dont lost the check card tho. I need to figure out what to do with my idle cash, i put $6k into ally's CD a while back 2.75% 5 year CD. But remember inflation is averaging around 5%.

Personal opinion here but unless you have a lot of money, the interest earning is a joke on checking or saving. The only major difference is limitations on what the accounts are designed for. I personally prefer a checking only solution unless you have a lot of money.

Wow 1% is alot (compared to what im getting on my savings with Chase). Is the minimum $10k?

I know it's not alot, but the money I have in my savings is not intended for investment purposes (more like a rainy day/emergency fund)

Quote from BayArea : Wow 1% is alot (compared to what im getting on my savings with Chase). Is the minimum $10k? I know it's not alot, but the money I have in my savings is not intended for investment purposes (more like a rainy day/emergency fund)

There is no minimum. In my case, the money is mostly going serve the same emergency/other expenses purposes.

If you get a higher interest rate on a checking account vs. a savings account I don't really see any disadvantage in keeping it in a checking account. Usually the main reason why you wuold keep money in a savings account is because of the interest. A checking account would keep your money the most accessible with you being able to make multiple withdrawals without instilling any sort of penalty.

I use the Rewards Checking Account from Consumers Credit Union (IL)

https://www.myconsumers.org/en/pe...cking.aspx

I just try to give half of my money to my parents. Who I don't live with. I tell them buy something if they need it and they usually save anyway. They are a great savings account and better than the banks.


I would go the credit union route because Ive heard good things. Could you share the name of your checking account? I'd like to check em!

My checking account pays 3%. It only requires that i have direct deposit, and use 12 signed transactions with my debit card. I keep all my money in that account, rather than the savings account that only pays 0.25%.

I use Communication Federal Credit Union.

Be careful you don't get hit with a dormant account fee. My bank (Flagstar) will hit you with a $10 fee for inactivity on a checking account after 6 months...

Quote from Kane1124 : Be careful you don't get hit with a dormant account fee. My bank (Flagstar) will hit you with a $10 fee for inactivity on a checking account after 6 months...

Most credit unions dont nickle and dime you with fees. If they do, you need to find a new Credit union.

Quote from daw4888 : My checking account pays 3%. It only requires that i have direct deposit, and use 12 signed transactions with my debit card. I keep all my money in that account, rather than the savings account that only pays 0.25%. I use Communication Federal Credit Union.

Different bank, but similar story. It does pay off too. I would recommend finding a bank with a similar program. Great way to make 3% with pretty much no risk and 100% liquid money.