Little did I know, my bank's savings account is worth nearly 5 times that of my checking account. See how much I earned by shifting my balance between the two.
My husband and I joined finances not upon marriage, but upon children. That’s how I know that it’s been 6+ years since we’ve touched our original savings
account (which still has the starter $100 in it) and have instead solely used our checking
account for every transaction since that day. In this case, the d in day stands for dumb, dumb, dumb. Let me explain. Out of laziness and a lack of wanting to manage multiple balances, we solely credited and debited the checking
account. It was here that in anticipation of funding an addition to our home, we grew a sizable nest egg. When close to achieving our target, we realized the process of selecting a designer/builder might take longer than expected and plus we needed to wait out the winter for construction to begin.
To avoid transaction costs associated with using our financial planner for a real investment strategy during this holding pattern, I asked the bank teller about current CD rates - thinking that a monthly option might yield a promising rate increase. Nope, that was out of the question in today’s market. However, with one set of key strokes a blatantly obvious option was available for increasing our yield nearly 5-fold: the savings
interest rate was 0.09% vs. checking
at 0.02% (a 450% variance). Regardless of how truly pathetic both percentages were, I needed not complain but instead focused on action. I immediately shifted our balance from checking
and made myself $75 or so in potential earnings (which is about 1/2 sq. ft. of remodeling costs - LOL). Well, you can hopefully draw on this advise and make smart deposits in your own bank accounts!