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Not the OP, but I keep 1-2 months of normal spending in a checking account, and any excess income beyond that goes into investing in index funds. In the rare ca
by kcorbitt 8y ago
Not the OP, but I keep 1-2 months of normal spending in a checking account, and any excess income beyond that goes into investing in index funds. In the rare case that I need to have a lot of cash available for a big upcoming purchase, I'll either just keep that in my checking account too or in a money market account to generate a bit more interest. I do technically have a savings account, but I can't think of a good reason to use it.
EDIT: maybe if my savings account paid meaningful interest I'd use it more, but most retail banks these days don't.
- atwebb 8y agoSome banks are pushing towards a 2% interest rate and still FDIC insured, though they're only online. It's not great but part of a diversified account structure for us.
- Djvacto 8y agoWhat interest rate does your savings account get? Most of my savings are for short-term things currently (tuition mostly) and so it sits in a savings account with one of the higher APY banks (Ally, Alliant credit Union, and the like). However, when it's money I wouldn't have to pay back somewhere soon, it would definitely go to index funds.