Checking in on your Checking Account

a bunch of coin bars showing the difference in earnings between a savings account and a checking account

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.

Personal Statement

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.

Impersonal Statement

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 to savings 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!
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