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Keeping too much in your checking account isn't ideal, for two reasons: First, such easy access means you might be tempted to spend it. Keeping too much in your checking account could mean that you're leaving money — even a little — on the table. After this account is built, it can be tempting to leave any spare cash in your checking account. If your checking account is growing while your IRA, 401(k), or savings account remains stagnant, you're probably keeping too much money in checking. You're worried you're missing out on moneyThe average checking account has an interest rate of 0.07%, according to the FDIC.
Persons: , Marci Bair, it's, Bair, You've, I've Organizations: Service, Bair Financial Locations: Wall, Silicon, Bair, San Diego , California
An ATM installation at Art Basel Miami Beach is displaying and ranking people's bank balances. An ATM is typically used in conjunction with a checking account, which would mean people have tens of thousands — even millions — readily accessible. A checking account shouldn't hold all your moneyA checking account is only one part of a smart banking setup. One checking account is for bills, and the other is for spending via debit card. One savings account is for your emergency fund, and the second is for other goals.
Keeping your money in the wrong place has some easy tells: Your money won't grow on its own, and you don't have cash on hand for an emergency. If money comes into your checking account and stays there, you're probably not making the most of your money. If your emergency fund isn't full and in a separate account, your money isn't in the right place. You don't have goals you're working towardsIf you don't have money goals you're working towards, there's a good chance you're keeping your money in the wrong place. Your money isn't growing on its ownThe reason people invest, for retirement or otherwise, is to keep their money growing over the long term.
Persons: , Marci Bair, It's, Monica Sipes, Marcy Keckler, it's, you'll Organizations: Service, Wealth Advisors, Ameriprise
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