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> What's the value of a "savings account" in 2018, though? Low risk emergency fund or sunk cost funds. If you purchase everything on credit or debt, you're as
by danesparza 8y ago
> What's the value of a "savings account" in 2018, though?
Low risk emergency fund or sunk cost funds.
If you purchase everything on credit or debt, you're asking for trouble in the long run. Debt or credit involves substantially more risk.
- vonmoltke 8y agoIf you purchase everything from a savings account you are going to get eaten alive in withdrawal fees. Note the survey question literally asked about "savings accounts". I would answer that question with a number below $1,000, but I still have a significant reserve and no credit card balances.
- djrogers 8y agoI haven't paid a withdrawl fee on a savings account in decades, and I use them for all my sinking funds.
- mattkrause 8y agoRegulation D limits savings accounts to six withdrawals a month, after which almost every bank charges you an “excess activity” fee.
- djrogers 8y agoSinking funds aren't generally used for large numbers of purchases - but if they happen to be one month, you can just make a single transfer to a checking account.