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Old 06-03-2007, 10:26 PM   #21
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One thing many people could find useful is to keep their existing checking account and set up a Money Market account like Gmacbank. This allows 6 withdrawals a month with no more than 3 being check or debit card (used in a point of sale transaction). So you might set up say 4 of your largest monthly transactions as bank autopay (credit cards, mortgage) at GMAC so you have a couple other available for miscellaneous withdrawals, perhaps transfers to your checking account. GMAC pays 5.3% currently. So the person who wants to only make only 4 $10,000 transactions a year does the transfer to GMAC. So of his $3300 monthly expenses probably half are handled by the 4 withdrawals at GMAC (for example put as many purchases as possible on rebate credit cards which are paid in full each month). So every month he transfers say $1650 to his checking account so he will have an average checking account balance of between $1000 to $2000 (depending on how large a buffer he wants in the checking account). So he is losing $50 to $100 a year in interest.

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Old 06-03-2007, 10:49 PM   #22
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Join Date: Oct 2006
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I've found Schwab banking to terrific way of handling money management.
Everything is free no restrictions on size or frequency of withdrawal, free online bill pay. They do automatic transfers from your Schwab brokerage account to the checking account for overdrafts. Plus I love being able to going to any ATM in the world and withdraw money with no fees, since they rebate ATM fees. I even find myself using the free online wire transfer several times a year.

Most importantly, I like knowing that my money is alway earning interest.

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