Is this a bad idea?

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markr867
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Is this a bad idea?

Postby markr867 » Wed Aug 15, 2012 6:02 am

Currently, I have a checking account and two savings accounts at my bank. My one savings account is my emergency fund and my other is a "general savings" account that I just let build up each month and occasionally dip into it a bit for something fun.

In my checking account, I start every month with $2500 - one month of expenses plus a little extra. In the beginning of the month it drops very low as most of my expenses come out then, and then it goes up when I get paid on the 15th and the 30th of the month. Any extra over $2500 at the end of the month gets swept off into my savings account.

Here's my question.. my savings accounts are paying .62% and my checking account is a high interest paying 1.29%.

I'm thinking about moving my $10,000 emergency fund into my savings and making my "floor," or what I start every month with, $12,500 instead of $2,500 so I can take advantage of the high interest.

I'm VERY diligent with my money and I don't see myself spending unnecessarily just because my checking account is now much higher, but am I missing any problems with keeping my emergency fund in my checking account?

Tightwad
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Re: Is this a bad idea?

Postby Tightwad » Wed Aug 15, 2012 6:41 am

markr867 wrote:I'm VERY diligent with my money and I don't see myself spending unnecessarily just because my checking account is now much higher, but am I missing any problems with keeping my emergency fund in my checking account?

As long as you keep track of your money, I wouldn't have an issue with you doing this to make the extra interest. The only downside I can think of is if you have this checking account linked over the internet to a bunch of a websites, accounts, etc where it raises your chances of getting hacked, then all of your cash is at risk not just $2500.

Did you try asking the bank to raise the interest rate on the savings account to match the checking?


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