I?? one of those people that really spend hours and hours trying to squeeze every penny out of my money. Every two weeks, I would move the majority of my pay check into my brokerage, and saving accounts. There are many days of the month where my checking account would be left with less than $100 dollars. I do this so often that sometimes I forget that I have to use it to pay for my credit card, and at the last minute will have to move money around. This sounds reasonable but let me tell you that at times I worry I might not have enough time for the funds to transfer back to my checking account so I can do an electronic bill pay.
Often, I feel like it might not be worth the effort to do this but I have not stopped doing this yet. As of right now, I have a checking balance of $384 and will have my paycheck coming in tomorrow which will cover my rent that I will have to pay by tomorrow (see what I mean when I say the dates are sometimes tight?).
After starting to look into these dates of transfers more closely, I noticed that it takes 1-2 business days (sometimes even 3) if I deposit my expense check into my checking account using my ATM machine. I went and ask my bank, and they told me that they need time to verify the amount and make sure there is nothing wrong before I can access the funds. Although I’m not too happy with their response, it does not sound like there is much I can do. One trick the teller did tell me though was that because my company uses the same bank (Wells Fargo), if I were to go to the branch and deposit my check asking the teller to deposit it as cash, I can access the funds right away. I often have several thousands of dollars going in and out of my checking account. Couple that with having to pay my credit card with all these expenses and trying to squeeze every day of interest by putting money into my savings account before I have to pay the credit card bill, I have almost found a day time job for myself.
So, this tip is great for me since I can access the funds right away and not have to worry about checking my bank account twice a day to see when it will be available before I can move it over to interest accruing accounts.
This just dawned on me while I was writing this, but my brokerage account actually has bill pay abilities. Theoretically, I just transfer everything to my brokerage account (where the cash does get interest), and just pay everything through the brokerage account. This will be something I will look into.
Furthermore, many online banks are starting to offer checking accounts that let you earn interest. I remember at least seeing Etrade and ING Direct having an online checking account. You lose the ability to go to a teller, and also writing physical checks, but if you don?? need to see a live person (online is easier anyway) and write a check (the only time I use checks is for my rent), then there is no reason why you want to put money in your checking account and let your bank profit with your money!
Promote or Save This Article
If you like this article, please consider bookmarking or helping us promote it!
Print Post | Email Post | Del.icio.us | Stumble it! | Reddit |
Related Posts
- Remaining Money Checklist Before I Become a Full Time Blogger
- How to Get Rich Quick
- Manage Your Checking Account and Stay On Top of Your Finances
- Bad Habits Financial Institutions are Learning from Walmart
- Being in Las Vegas and not Gamble
Subscribe! (and Get a Mini-Course with Free Registration)
Follow me on twitter! In addition, subscribe to grab free amazing content or take advantage of the newsletter to have content delivered to you. For starters, a 7-part mini course to help you spend less and be happy will be delivered to you when you subscribe!(Don't worry about spam, because we hate it as much as you do!)
Twitter
Facebook
Subscribe
{ 7 comments… read them below or add one }
I use ING’s checking account. They even let you send electronic checks which is convenient. These days, everyone should be able to receive ACH deposits now online so hopefully we can get rid of physical checks soon!
Great tips. I have been tempted to open these online checking accounts too. I guess I know that it is better but I have just been lazy!
I just hope that there are more and more competition amongst banks so we get better and better services plus higher and higher interest rates.
you definitely need to use ING’s electric orange checking account.
send me an email and i’ll send you a referral code. I think you’ll get $25. (and i’ll get a lousy $10 – i think they should give $50 for referrals, but anyway, its a great product)
empty spaces inc @ gmail . com [remove the spaces]
Hehe I really would take your offer up but I’m looking to buy a house really soon, and I’m afraid to open too many bank accounts and/or have too many credit cards.
After the house, after the house! (I’m saying that for so many things
)
Coulee Bank ( http://www.couleebank.net ) offers an incredible 6.01% APY with their Rewards Checking account. The rate is easy to earn. All you have to do is make 10 check card transactions a month, use e-statements, and do 1 automatic payment a month (they call it ACH). Coulee Bank pays 6.01% on the first $25,000 and 1.01% on anything above that. The best thing about this account besides the rate is it is FREE, you can apply online, and it is from a great bank with real people that answer the phone. And as they like to say, Banking Green has its Rewards. The Rewards Checking account saves paper and preserves our natural resources. No wonder I feel good about recommending this to everyone I know. Check it out. I guarantee you will love it.
This is a great idea and a great way to keep on top of your accounts! I really like how you are saving and investing although I strongly urge you having a budget that you keep track of every month of what bill are due, when and how much. I would be lost without mine!