Post #3131922

2026-06-06 00:21 UTC

There are Money Market and similar accounts which act like checking accounts but have interest rates like high yield savings accounts. They typically have a minimum balance of like $5k or more so if you have a large sum of money flowing through the account each month you can still get the yields but an unexpected pileup of bills out of order doesn’t cause declined transactions

Replies (1)

@wonderingwanderer@sopuli.xyz 2026-06-06 02:42

Yup, I was thinking along the lines of a money market savings account. They’re perfect for emergency savings funds because there’s no restrictions on withdrawals like with a CD. If you go below the threshold then you don’t get the higher yield, but that only happens in an emergency when you need to draw from it. I usually keep enough for my recurring expenses in my checking account, so auto-pay goes through without any overdrafts. I keep a little on top of that for discretionary spending and move the rest to savings. Then my regular savings account functions as a buffer. I keep enough in it that I can handle most unforeseen circumstances when they arise without draining from my money market account. It might not be a totally necessary step, but it helps my OCD. As long as that remains topped off, I put the rest into a moneymarket account. It gets a decent yield for a savings account, but not as much as a CD. Once I build that back up to where it should be I’ll probably start investing again in a good mutual fund, probably one that favors certified B corporations with good ESG scores. Hopefully something European (cause fuck the US stock market). I’m kinda recovering from a few years of financial hardship, which is why it’s very much a work in progress. But I’m almost back to where I used to be. So anyway, that’s all why I said I would never have $15K in checking at one time. Just seems like bad money management. Unless I’m literally about to make a $10k purchase, but I can’t think of any reason I’d be doing that.

Open ##3131921