Reply to How much do you keep in your checking account?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Some of you guys are blowing my mind. I keep about $1k in checking and feel bad that I don't watch cash flow more closely so it can be lower. Most of our money is in savings and my credit card and mortgage come out of that account. Checking pays the utilities and student loans as well as a couple charitable donations that asked us not to use a credit card to save on fees.[/quote]

I don’t understand what’s so earth shattering. You pay your mortgage from your savings. I pay mine from my checking. So I need to have enough cash in my checking to pay my monthly bills - mortgage, car payment, insurances, utilities, credit card bills, medical bills etc. if I kept the cash in a HYSA then I would need to be constantly moving it to checking. [/quote]
Does your bank penalize for paying out of the savings account? I think some do, which was why most people would have separate checking and savings. These days, you can just park your $ in the hysa, earn interest the full month and have payments come out of there. No need to move it back around. Idk if it would be worthwhile for everyone, but the folks keeping 10k+ it would be tons extra in interest just doing that.[/quote]

PP you responded to. Aren’t you limited in a how many transactions you can do in a HYSA? We do have one, but we keep funds there that are for longer term goals. If there isn’t a limit to transactions, then I agree HYSA makes sense.

We keep around 20k in checking to cover immediate obligations. It gets drawn down between pay cycles. [/quote]

Np- Not only that, but at current rates, you're only missing out on maybe $400 annually in interest if you were to keep your checking balance at $10k and the other $10k in a hysa. Not nothing, but not worth it to me if it means I have to think about my balance constantly. [/quote]

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