We have two checking accounts. Both at the same local brick and mortar bank.
Account 1 receives all income and all auto deductions for investments, insurances, and utilities. We keep near, but no more than, $10k in this account. It is a high-yield checking account that has never paid us less than 3.5% since we opened the account but has paid us 5% for the last year. Monthly utilities meet our 10 debit card transactions per month requirement to obtain the higher interest rate. We never share the account information with anyone else, even the utilities are on set it and forget it mode so we have long since shredded the actual debit cards. Yes, every three years we get new debit cards; then we have to update the automated debits again and shred the new cards after a month but that small hassle is worth it for the benefits and perceived low safety risk.
Account 2 never has more than $2,500 in it. It is our workhorse account for daily living, donations, and children's activities. It also pays off our credit cards monthly. Account 2 receives $2k via intra-bank transfer every other Friday from Account 1. For larger purchases we transfer in the additional required amounts. Fraud happens on this account from time to time. But we want the card readers and random attempts to happen here by design. We have had to replace debit cards several times and even get a whole new account once or twice. Bank has always replaced what was taken, which has been minimal, quickly and without hassle. Earns small amount of interest, reimburses ATM fees, and is attached to small but free $500 overdraft line of credit.
Took years to come to this plan design but it's easy for DW and I to monitor and understand. Account 1 has never experienced fraud or the like and earns high interest.
All investments, retirement, and college accounts are at Vanguard except for each of our respective workplace retirement accounts and our fully-funded Emergency Fund which is at Treasury Direct (I Bonds).
Just offering one idea of setup for consideration.
Account 1 receives all income and all auto deductions for investments, insurances, and utilities. We keep near, but no more than, $10k in this account. It is a high-yield checking account that has never paid us less than 3.5% since we opened the account but has paid us 5% for the last year. Monthly utilities meet our 10 debit card transactions per month requirement to obtain the higher interest rate. We never share the account information with anyone else, even the utilities are on set it and forget it mode so we have long since shredded the actual debit cards. Yes, every three years we get new debit cards; then we have to update the automated debits again and shred the new cards after a month but that small hassle is worth it for the benefits and perceived low safety risk.
Account 2 never has more than $2,500 in it. It is our workhorse account for daily living, donations, and children's activities. It also pays off our credit cards monthly. Account 2 receives $2k via intra-bank transfer every other Friday from Account 1. For larger purchases we transfer in the additional required amounts. Fraud happens on this account from time to time. But we want the card readers and random attempts to happen here by design. We have had to replace debit cards several times and even get a whole new account once or twice. Bank has always replaced what was taken, which has been minimal, quickly and without hassle. Earns small amount of interest, reimburses ATM fees, and is attached to small but free $500 overdraft line of credit.
Took years to come to this plan design but it's easy for DW and I to monitor and understand. Account 1 has never experienced fraud or the like and earns high interest.
All investments, retirement, and college accounts are at Vanguard except for each of our respective workplace retirement accounts and our fully-funded Emergency Fund which is at Treasury Direct (I Bonds).
Just offering one idea of setup for consideration.
Statistics: Posted by 5outof10 — Sat Sep 14, 2024 9:49 pm