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With today's existing banking products, it is indeed basically impossible to keep 0% in cash, because you then couldn't pay your rent etc. On the question of h
by konne88 5y ago
With today's existing banking products, it is indeed basically impossible to keep 0% in cash, because you then couldn't pay your rent etc.
On the question of how much money you should keep in cash, I think it really depends on how much savings you have. Most experts recommend a rainy day/emergency fund worth 3-6 months of normal expenses. If you invest that rainy day/emergency funds in a Financial Choice account, it is important to choose an investment strategy with an appropriate risk/reward profile, and adjust the savings target to account for the additional risk from the investments. Betterment has a pretty good writeup on this idea https://www.betterment.com/resources/safety-net-funds-why-traditional-advice-is-wrong/?gclsrc=aw.ds& https://www.betterment.com/resources/safety-net-funds-why-tr....
- notyourday 5y agoI do not see a market for this product: * People for whom this product matters ( those who don't have much money and hence should welcome the earning upside no matter how small the interest is, should not use this product because it is an investment account masquerading as a DDA account and could lose value. Having living expenses in an unstable account is just a plain bad financial advice. * People who have a pile of money want their cash to be cash and cash only. They already have exposure to the market via investment accounts with checks/debit cards against them provided by the likes of Schwab, Fidelity, BOA, Chase and their immediate liquidity needs are addressed via revolving credit lines.