Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why are people keeping an emergency fund in checking? Smh

Why not?

Because it's just throwing money away. Checking accounts get no interest at all. Even though small, savings accounts get a small interest. Money markets get more. Have the money direct deposited to your savings account. Transfer what you need to pay bills to the checking account when needed. The interest is small, but it builds up slowly and compounds. $20 this year is $25 next year is $37 the next year and compounds. Over the years, it will matter.

I just do it all via direct deposit. 30% goes into my checking and 60% into my savings and 10% into wealthfront. Every quarter DH and I look at our savings and decide where to park it. We keep checking just high enough to cover our living expenses.

I have about 4k

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why are people keeping an emergency fund in checking? Smh

Why not?

Because it's just throwing money away. Checking accounts get no interest at all. Even though small, savings accounts get a small interest. Money markets get more. Have the money direct deposited to your savings account. Transfer what you need to pay bills to the checking account when needed. The interest is small, but it builds up slowly and compounds. $20 this year is $25 next year is $37 the next year and compounds. Over the years, it will matter.

I'd also be concerned about the security implications. If someone steals your debit card or fraudulently accesses oyour checking account, they could clean out everything and you'd have to wait for the bank to resolve it.

Between checking and savings, I normally have $30k liquid at any given time.

Dropped down just a touch recently because we bought the wife a new car. Will pop back up with bonus in March.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why are people keeping an emergency fund in checking? Smh

Why not?

Because your checking account interfaces with all kinds of parties on a daily basis, and it has a greater chance of being compromised and cleaned out. I'd prefer the bulk of my money sitting somewhere else so if something happens to the checking, I can draw money from other accounts to pay bills while the issue is being resolved.

This.

When we were in our 20s, my DHs account was compromised and ALL of his money gone. Including money in a linked savings account (to cover overages.) It was months until the bank investigated and and he got that money back.

After that, we keep about $1500 in checking and everything else in a non-linked savings account.

Our average for our bank account is around 10k. Swings between 6k and 14k depending on how bills and paychecks fall. If it gets above that, we sweep over to 2% savings account (and once or twice a year sweep excess from savings into investments).

Cash savings @ 2% is at 85k. 50k emergency fund, 20k an upcoming car purchase for DH, and 15k some upcoming planned home improvements.

We also keep 2k in literal cash in our home. It doesn't get touched, it isn't our "Oh I need some cash for the delivery guy" money, it is a peace of mind thing for DH.

We are 33/34 DINKs, been married 5 years and hhi started around 140k and is now at 260k-290k, so obviously we are extremely lucky to have that kind of income to build this kind of savings. You can't compare yourself if you're in a very different life circumstance.

Usually somewhere between 4k and 12k depending whether bills have paid yet

31. Just checked. Roughly $18K.

Probably 5k in checking, 25k in savings, 80k in retirement

About 150,000 across all of our checking accounts.

Anonymous wrote:

Anonymous wrote:Why are people keeping an emergency fund in checking? Smh

Why not?

Because your checking account interfaces with all kinds of parties on a daily basis, and it has a greater chance of being compromised and cleaned out. I'd prefer the bulk of my money sitting somewhere else so if something happens to the checking, I can draw money from other accounts to pay bills while the issue is being resolved.

Checking account - no less than $2000 at all times (swings from $12,000 to $2000 depending when bills are being taken out)
Savings account - $30,000
Different amounts in money markets, 401K, etc

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why are people keeping an emergency fund in checking? Smh

Why not?

Because it's just throwing money away. Checking accounts get no interest at all. Even though small, savings accounts get a small interest. Money markets get more. Have the money direct deposited to your savings account. Transfer what you need to pay bills to the checking account when needed. The interest is small, but it builds up slowly and compounds. $20 this year is $25 next year is $37 the next year and compounds. Over the years, it will matter.

There is no money market or high yield savings account on earth that compounds from $20 to $25 in one year. That would be a 25% return. Ally and American Express currently offer high yield savings accounts at 2% annually, so it's more like $20 to $20.40.

I agree that people should put their money in one of these accounts if possible--it's free money--but it's not quite at the scale you suggest. The rates also fluctuate; both Ally and AE were down closer to 1% this time last year. Same story with most money market accounts.

Anonymous wrote:

Anonymous wrote:Why are people keeping an emergency fund in checking? Smh

Why not?

Because it's just throwing money away. Checking accounts get no interest at all. Even though small, savings accounts get a small interest. Money markets get more. Have the money direct deposited to your savings account. Transfer what you need to pay bills to the checking account when needed. The interest is small, but it builds up slowly and compounds. $20 this year is $25 next year is $37 the next year and compounds. Over the years, it will matter.

Checking: 1.2k
Emergency saving: about 30k
Age: 31 and single