View Full Version : Checking account amount?
I am in the process of moving funds around and have way too much in my checking/debit card account. Wondering how much simpletons try to keep in their checking/debit accounts?
I am in the process of moving funds around and have way too much in my checking/debit card account. Wondering how much simpletons try to keep in their checking/debit accounts?We try to keep between 5 and 10K in checking. It's low right now due to a half year property tax payment a few weeks ago and paying credit card statements after a 5 week vacation.
Teacher Terry
7-21-20, 2:29pm
Never more than a few thousand over our monthly bills.
$2000-2500. I keep an eye on it as I log into the credit union Web site throughout the month to pay bills, etc., so if we need to move money in from cash, we have time to do it, or if there's a pile that can be swept out of zero-interest checkin, we can do that.
Normally I will sweep it into eTrade if I notice it's over $10,000. That's way more than enough to not worry about anything bouncing.
Thanks for the reminder. Apparently I haven't done it in a while because it's over $27,000...
dado potato
7-21-20, 6:00pm
The specific amount in checking varies a great deal from month to month. But in principle, I hold cash in a non-interest-paying checking account that is just sufficient for payments that are soon due.
I use 2 banks for checking accounts that I consider different in purpose:
1. Local Bank with a branch located walking distance from my home... my bank for homeowner expenses.
(During the COVID-19 pandemic, this lobby is locked, but I can telephone and have an employee meet me at the entrance at an appointed time for any necessary in-person banking services.)
property tax checks 2x year
(If I had a mortgage, I would use this account for payments.)
homeowners insurance check 1x year
Water and Sewer checks 4x year
trades (checks written for home repairs, snow removal, and home improvement... number varies from one year to the next.)
Do-It Yourself home improvement and maintenance (debit card at hardware stores)
Lawn & Garden (debit card at greenhouse, hardware stores)
This checking account is linked to an online savings account at another bank (my "savings bank") which is consistently one of the top 5 in the country for APY, and the savings bank reliably carries out my transfers within 24 hours.
The local bank is where I rent my safe deposit box (it's heavy, because I am a gold bug), and it is where I would go if I need an ATM withdrawal, or a Medallion Signature Guarantee.
I log on to this account at least 1x per week, to track activity. and replenish the reserves in case an ATM withdrawal depleted the cash.
2. Regional bank (the 7th biggest bank in the USA, arguably the best-managed one.)
I use this checking account for all other payments, and for direct deposits.
It is unsurpassed for international remittances (incoming)... charging me 50 cents per check... I deposit by mail in complimentary mailing envelopes. Funds are available with no delay beyond that which would apply on domestic bank deposits.
I log on to this account at least weekly to track activity. The minimum balance I would keep there is $300.
This account is also linked to my savings bank.
At present, one savings bank is adequate for my reserves. It is the 5th largest bank in the USA. If I needed a second savings bank, I would consider a Sallie Mae Money Market Savings Account.
I use my savings bank to build up adequate reserves for:
vehicle replacement
travel fares and lodging
state and federal income tax 4x per year
dental
medical out-of-pocket
home improvements
529 college savings plan contributions
the unexpected.
It seems to me that FDIC-insured cash deposits will receive a negative real yield, no matter what depository institution is concerned. So, I believe at this time gold and silver metal would be a better "store of value" than deposit accounts.
I usually keep 6 months' expenses there.
frugal-one
7-21-20, 7:16pm
I usually keep 6 months' expenses there.
in a checking account????
in a checking account????
Yes, interest rates are so low now that it's not really worth the bother of special-casing it.
A minimum of $1000 to avoid fees. My account is tiered so the more I have in it the higher interest rate I earn, so if I have more than that I am not bothered.
iris lilies
7-21-20, 8:10pm
Yes, interest rates are so low now that it's not really worth the bother of special-casing it.
Yes, that’s what I would do as well if I were managing our household money and checking account.
I'm a heavy user of my debit card, so I don't want a lot of $$ in my checking account, just in case something happened. I really keep no more than $700-800 in there, most times. My money is in two savings accounts, tied to checking, at same bank, so I can easily transfer if needed.
iris lilies
7-21-20, 9:11pm
I'm a heavy user of my debit card, so I don't want a lot of $$ in my checking account, just in case something happened. I really keep no more than $700-800 in there, most times. My money is in two savings accounts, tied to checking, at same bank, so I can easily transfer if needed.
Well, there is that consideration.
For us old fogies
who don’t debit card, it’s less of a risk.
Teacher Terry
7-21-20, 9:16pm
This old doggie debits. I don’t use them online though.
It doesn't even have to be used online. The bank's system could be hacked or your number stolen. Remember the Target debacle when someone hacked into their system a few years ago?
I debit all daily purchases, use credit card for gasoline and Amazon purchases and checks for monthly bills such as utilities. Other than a $100 bill stashed in my wallet in case of a power outage or some other calamity I've been cash free for several years.
iris lilies
7-21-20, 10:04pm
It doesn't even have to be used online. The bank's system could be hacked or your number stolen. Remember the Target debacle when someone hacked into their system a few years ago?
But that is true with any account.
Debit Carding, last time I checked, has limited protections.
It certainly the security aspect is a problem of big balances.
Simplemind
7-21-20, 10:19pm
Usually no more than a couple of thousand. I have my pension and SS auto deposited so every couple of months I go in and transfer the excess to savings. I used to take my SS and invest it but lately I've felt better keeping it in savings. I'm down about 3% in my investments and they are moving things around.
I try to keep $3000 for all my ongoing expenses. I pay household bills online and credit card for everything else plus occasional cash purchases. I only ever use my debit card to withdraw cash when needed.
Funny how different we all are.
I guess we haven't been spending as much lately as the checking account keeps growing. I realized that the bank savings account interest is a tiny fraction of my Ally account so have been shifting it there even if Ally only earns $100 a month in interest at present. Better than $11 earned at bank savings. I don't think I've written a check in months. Mostly debit and Visa card paid off each month.
San Onofre Guy
7-22-20, 12:12am
I’m like Bae, I have about seven months of living expenses in my checking account. The reason is that I make quarterly tax payments which I don’t consider to be monthly living expenses and I’d rather not withdraw money from my investment account unless making a big purchase over $10,000. The interest lost is insignificant.
frugal-one
7-22-20, 2:13pm
Like Tradd.... I have a debit card attached to my checking account. Maybe it is silly but it makes me nervous to have large quantities of cash in my checking account. I usually keep no more than a few thousand dollars there. i know I would only be liable for a small amount but still.....
ToomuchStuff
7-23-20, 1:42am
I keep separate checking and debit card accounts. I think the most I have kept in my checking account is a couple thousand dollars. (monthly bills, transfer money from savings when things like property tax comes due)
After seeing multiple people have their checking accounts stolen, after house break in's, I would much rather have the money in savings (even with paltry interest) then checking.
I know what the daily limit on my debit card is, so not much more reason to have more then that in there. (again, phone transfer is easy, and on two occasions, I had a temporary increase on my limit, to buy a piece of equipment for work, one recently, for close to $7K). With any kind of plastic (CC or DC), you are relying on everybody in the chain to have good security. (merchant, the network system they use, their help, etc. etc)
Credit or debit card used for "fun" stuff. Credit card paid off every month.
How many people here still actually write out checks? I had to buy a new box a few years ago and have maybe used two or three. I doubt I will ever buy any more. The old checks had had my New York address. I moved out of that place in 2004.
How many people here still actually write out checks?
We write 5 or 6 a month for recurring bills such as cable/internet, utilities, credit cards, etc., as well as our twice yearly property tax payment. We'll shortly be moving to pretty much 100% online payments though after realizing during a recent month + long vacation that it's difficult to keep things current when you're not able to collect your mail, not impossible but definitely difficult.
Its ironic that the one check I wrote in months was to pay the first half of our property taxes and it was lost in the mail. I only sent a check because I didn't want to pay their online fee of $3.50.
iris lilies
7-24-20, 10:13am
How many people here still actually write out checks? I had to buy a new box a few years ago and have maybe used two or three. I doubt I will ever buy any more. The old checks had had my New York address. I moved out of that place in 2004.
We do. We pay most things by check, say, 75%.
But I run into youngsters who are flummoxed by our neighborhood’s requirement to pay community garden fee by check or cash. The youngsters aren't flexible.
All plant socieities and garden clubs and small hobby groups still are check or cash operations.
our neighborhood association has been accepting credit cards and online payments for certain thing for decades but not for community garden fees.
I usually keep slightly more than I need in my checking account. I'm transitioning to paying my bills on line, so this may be my last supply of checks.
ETA: I use Paypal quite a bit; next I'll investigate Venno.
SteveinMN
7-24-20, 10:37am
We write some checks. Mostly to charities and doctors, I guess. I generally write checks for those entities used intermittently enough to make setting them up through the credit union Billpay a fair amount of effort for one or two payments and for which I don't want to be entering CC information on bunch of vendor Web sites. Even if they farm out payment to some (undisclosed) third party, I still feel more comfortable with the big pay vendors like Apple or PayPal. One paper check and a stamp later, the bill is paid and I don't have to worry if somebody's computer gets hacked while they're working overtime from home. Been part of too many data breaches already.
We write checks, too, including property taxes, insurance bills, utilities, donations, doctors, anything where we need a record in the future that we paid for it. I write them when I give money to anyone in my family. I write them when I open brokerage accounts for the grandkids, anything like that.
If we ever go back to mortgage payments, we'll probably automate that.
We also use cash each week, but I understand folks who don't want to do that--it's just what feels right for us, for many reasons.
I can’t tell you the last time I wrote a regular check. I have my bank issue checks for rent and my church through online bill pay. What I like about doing it that way is the $$ comes out of my account right away. I don’t have to wait for checks to clear.
I also use my credit union's bill pay system. It's simple, quick, automated for regular payments and best of all free. My last checks cost something like $.25 each, plus the cost of stamps makes it the best option for me.
Teacher Terry
7-24-20, 1:10pm
I use my bank’s bill pay also. I have to actually write a few checks per month to my chiropractor and groomer who don’t take cards.
Generally under $5k. Another $4k in the basic savings account in case we have a big bump expense and need a quick transfer.
We don't have our debit attached to any bill-pay account as we don't want our full account at risk if hacked. Those bills all go to our Credit Card-love free travel just for paying bills (will there be travel again?)
I got a new checking account about 18 months ago, which is functioning as my main account. By my count, I have written 7 physical checks on it. Two of those were "void" and given to people to set up funds transfers.
I like having more than one checking account for a variety of reasons. It helps me to have separate places for things, with some distance.
iris lilies
7-27-20, 7:51am
I like having more than one checking account for a variety of reasons. It helps me to have separate places for things, with some distance.
We have two checking accounts, one for the every day bill paying, and the other to retain big money. And last year we opened an account in Hermann so I guess that makes three checking accounts, but eventually will squeeze down to two again.
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