I started using BoA/Merrill for preferred rewards, and ended up liking their checking. I moved our emergency fund and medium term cash over to Merrill and have it in TTTXX so everything "cash related" is in one place (bulk of investments are elsewhere).
I've always been nervous about locking cash up in a purchased money market fund that can't be liquidated instantly, even though I've never actually needed cash that fast. For the "sleep well at night" factor, I keep a higher balance in checking. That too has downsides because if there is fraud on the account, it could create problems.
If I opened a BoA savings account (0.01% interest), turned off overdraft protection, and keep 2-3k in checking and the rest in savings, would that mitigate any fraud risks on the checking account? (I'd just have to remember to move money back and forth before I pay bills).
EDIT: clarified that I would keep 2-3k in checking and the rest in a linked savings account.
I've always been nervous about locking cash up in a purchased money market fund that can't be liquidated instantly, even though I've never actually needed cash that fast. For the "sleep well at night" factor, I keep a higher balance in checking. That too has downsides because if there is fraud on the account, it could create problems.
If I opened a BoA savings account (0.01% interest), turned off overdraft protection, and keep 2-3k in checking and the rest in savings, would that mitigate any fraud risks on the checking account? (I'd just have to remember to move money back and forth before I pay bills).
EDIT: clarified that I would keep 2-3k in checking and the rest in a linked savings account.
Statistics: Posted by NYCaviator — Sat Sep 14, 2024 3:26 pm — Replies 9 — Views 269