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Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:28 AM   #1
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Anyone keep a lot of money in their checking account?

I have been thinking about this lately and I guess cause of where I am right now in my life, new baby/wife not working, I want to have as much money on hand as I can. ING takes too long back and forth for me. I just like having a good amount in my checking account, I am shooting for one months expenses on top of the normal paycheck to paycheck amount. Anybody else do something like this?
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:32 AM   #2
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Re: Anyone keep a lot of money in their checking account?

I tend to keep about $500 to $1000 as a cushion in the checking account.

I have a savings account at the same bank that's for short-term emergency savings, which usually has another $1000 in it. I can transfer money between the two accounts online in a minute.

Beyond that, my big emergency fund (i.e., the 6 months expenses) is in a money market account and CD (half in each). I can call the office where the account is and have money wired into my checking account on the same day.

So no, I don't keep "a lot" of money in the checking account.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:38 AM   #3
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Re: Anyone keep a lot of money in their checking account?

My checking account is linked to my taxable rokerage account. If I run over what is in checking, my broker automatically transfer cash to cover it, creating a margin loan if necessary. I also have an overdraft line of credit attached to the checking account.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:38 AM   #4
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Re: Anyone keep a lot of money in their checking account?

Nope, always about one month expenses, $2-3000 in checking an it is down under a grand by the end of most months...all the rest at Emigrant Direct. I am a little lazy in that I look at Emigrant's 5.05% as just about as good at the 5.15 to 5.25% I could get for a CD and not mess with CD for a 3 year cushion...I transfer about 2K/month to go with part time salary until full retirement in 2 years...

This board has taught me to be smart with ever short term money...

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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:41 AM   #5
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Re: Anyone keep a lot of money in their checking account?

Brewer,
Who do you use for a brokerage account that offers that service?
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:45 AM   #6
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Re: Anyone keep a lot of money in their checking account?

Schwab.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:48 AM   #7
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Re: Anyone keep a lot of money in their checking account?

I have heard good things about them. In the past I have used TD Waterhouse, now TD Ameritrade and they were ok. I had a 401k with Schwab years ago and loved their website and services. They seemed to have lowered and eliminated a lot of there fees. I may use them when I rollover my 401k. I was also looking at Fidelity which I have a MM with, they seem to have good services.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 10:57 AM   #8
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Re: Anyone keep a lot of money in their checking account?

Even though my checking account pays a small interest on monthly balances, I try to keep it under $1k and, every month when I reconcile my checking account, I clear out any cash over that amount and park it in my MMF.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 11:00 AM   #9
 
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Re: Anyone keep a lot of money in their checking account?

Well, if you consider the Vanguard Money Market Fund with Check writing capability, then yes I do. ABout $75K - @ about 5% interest.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 11:01 AM   #10
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Re: Anyone keep a lot of money in their checking account?

My checking account is linked to my money market account and e-savings account (at Citibank). So I keep the bare minimum in the checking account.

On the other subject, I also use Schwab for my taxable account and my rollover IRA, and I like them a lot. I'm a LTBH investor, so I don't have much in the way of fees.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 11:05 AM   #11
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Re: Anyone keep a lot of money in their checking account?

Like Cut-Throat, I keep almost $100K in the Vanguard Prime MM account. If my checking account gets low and I need to put money into it fast I just write a check on the MM account and deposit it into the checking account. My bank branch is nearby so that is not a problem.

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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 11:10 AM   #12
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Re: Anyone keep a lot of money in their checking account?

I used to do the TDWaterhouse brokerage/bank account thing, but the bank part become unavailable. The solution is to switch to WellsFargo which has a great brokerage part, easy transfers between bank and brokerage, good interest rates on your money, overdraft account, $3 trades, etc. It has replaced TDAmeritrade for us.

WF does not have the auto transfer between accounts, you have to do it yourself online. But for fastest transfers, write a check on the MM fund and deposit into your checking account -- WF puts no holds on such checks and the money is instantly available. You don't even have to wait overnight which is the norm for the online transfer.

We get 4 paychecks a month direct deposited to our checking account as well as some travel reimbursement checks, so the checking account seems to always have something in it for the bills.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 11:17 AM   #13
 
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Re: Anyone keep a lot of money in their checking account?

Quote:
Originally Posted by grumpy
Like Cut-Throat, I keep almost $100K in the Vanguard Prime MM account. If my checking account gets low and I need to put money into it fast I just write a check on the MM account and deposit it into the checking account. My bank branch is nearby so that is not a problem.

Grumpy
Even easier - do an electronic transfer on-line from your Vanguard MM Account to your Regular Checking Account.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 12:09 PM   #14
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Re: Anyone keep a lot of money in their checking account?

I keep quite a bit in my checking account about as much as I did in my past MM account. simply because my local bank is offering 5% and all i have to do is recieve my statement via email, access online banking once a month, use my check card at least 10 times a month, and have at least one automatic debit or credit a month. I already did all of those things so it was too good to pass up. I emptied my savings account there except for 1000 dollars and moved it all to the checking account. best 0 risk move i ever made.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 12:25 PM   #15
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Re: Anyone keep a lot of money in their checking account?

Quote:
Originally Posted by Cut-Throat
Even easier - do an electronic transfer on-line from your Vanguard MM Account to your Regular Checking Account.
C-T,

I tried that. It took two full days for the bank to credit my account. When I deposit a check at the counter, the funds are immediately available - no hold time.

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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 12:29 PM   #16
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Re: Anyone keep a lot of money in their checking account?

We hold about one months expenses in our checking account plus whatever extra padding we need to avoid account charges. We have an automatic monthly funds transfer from our brokerage accounts. If we end up needing more, I set up a one-time electronic transfer from our brokerage - this can all be done on line.

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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 12:31 PM   #17
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Re: Anyone keep a lot of money in their checking account?

When I FIRE'd, I opened three Vanguard Admiral Treasury MM Funds - one for me, one for DW, and one joint - about 15 BP lower yield than the Prime MM Fund but interest is exempt from state taxes, so the after-tax yield is slightly higher. I/we write checks over $250 on them. Since I FIRE'd, I started charging everything (including groceries) to a credit card and then pay the balance each month. I carry very little cash and keep a very small (maybe $1000 ave balance) in my checking account to pay bills under $250 (cable, phone, etc.).
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 12:32 PM   #18
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Re: Anyone keep a lot of money in their checking account?

Since I receive a paycheck twice a month, I typically keep 2 week's worth of expenses in my checking account. Each time my paycheck is deposited into my account, I figure out what the next two week's worth of checking expenses will be, add in a couple hundred extra for cushion, and transfer the rest to a money market or other investment.

Most of my monthly expenses are on auto-pay, so predicting what's coming up in the next two weeks is pretty easy.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 01:06 PM   #19
 
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Re: Anyone keep a lot of money in their checking account?

Quote:
Originally Posted by grumpy
C-T,

I tried that. It took two full days for the bank to credit my account. When I deposit a check at the counter, the funds are immediately available - no hold time.

Grumpy
That is not a show stopper to me, since I use a credit card for everything and pay it off monthly, I don't have the need for funds very often.
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Re: Anyone keep a lot of money in their checking account?
Old 12-15-2006, 01:11 PM   #20
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Re: Anyone keep a lot of money in their checking account?

Another option, OP, is to try etrade complete savings...with over 5% interest and can transfer to external accounts in one day. The rest of these like ING and HSBC take too long and make money on holding your money for 2-3 days...even worse if you are a noob and try a transfer on a fri. with them... http://www.fatwallet.com/forums/mess...eyword1=etrade
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