There are Money Market and similar accounts which act like checking accounts but have interest rates like high yield savings accounts. They typically have a minimum balance of like $5k or more so if you have a large sum of money flowing through the account each month you can still get the yields but an unexpected pileup of bills out of order doesn’t cause declined transactions
Yup, I was thinking along the lines of a money market savings account. They’re perfect for emergency savings funds because there’s no restrictions on withdrawals like with a CD. If you go below the threshold then you don’t get the higher yield, but that only happens in an emergency when you need to draw from it.
I usually keep enough for my recurring expenses in my checking account, so auto-pay goes through without any overdrafts. I keep a little on top of that for discretionary spending and move the rest to savings.
That’s why I said I would never have $15K in checking at one time. Just seems like bad money management.
There are Money Market and similar accounts which act like checking accounts but have interest rates like high yield savings accounts. They typically have a minimum balance of like $5k or more so if you have a large sum of money flowing through the account each month you can still get the yields but an unexpected pileup of bills out of order doesn’t cause declined transactions
Yup, I was thinking along the lines of a money market savings account. They’re perfect for emergency savings funds because there’s no restrictions on withdrawals like with a CD. If you go below the threshold then you don’t get the higher yield, but that only happens in an emergency when you need to draw from it.
I usually keep enough for my recurring expenses in my checking account, so auto-pay goes through without any overdrafts. I keep a little on top of that for discretionary spending and move the rest to savings.
That’s why I said I would never have $15K in checking at one time. Just seems like bad money management.