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One thing I've been struggling to understand: unless you're using JPMorgan to manage your money, why would you leave more than $5-10K in a bank checking/savings
by bickfordb 15y ago
One thing I've been struggling to understand: unless you're using JPMorgan to manage your money, why would you leave more than $5-10K in a bank checking/savings account over a discount brokerage account (Fidelity, Scottrade)?
- rdl 15y agoYeah, one of the best hacks I've found is to [ab]use a brokerage account for general banking use. E-Trade, Fidelity, Schwab, etc. all give banking accounts with very minimal (if any) minimum balance requirements, great policies (E-Trade refunds all foreign ATM fees, unlimited number of times (at least more than 200 or so times per month, which is the most I ever did), good money market balances, etc. Their only weakness is no decent online wire sending capability. Basically, it's even better than a good credit union, because their brokerage accounts are so high margin/high revenue that they'll subsidize the banking operations. It's like a cheap hotel room at a Vegas casino -- a win if you don't gamble.
- Drbble 15y agoTaking them up on an offer is not abuse. They do fine (ab)using the money you park with them.
- rdl 15y agoAs an underpaid startup founder, I keep a tiny balance with them, and run large amounts of transactions through them (not transactions they earn fees from); I'm a horribly unprofitable customer for them.