Saturday, June 12, 2010
Can't get enough of high interest checking
So I have some extra cash sitting around. Right now, it is not earning any interest. While inflation is low, it is still slowly losing its value by not earning interest or returns. I did put some of the extra cash in my IRA, but I'm maxed out for last year and this year for contributions. So I can't stash any more there. I wish I could of course. I also want to keep this liquid and don't really have the stomach to invest it in the market. So I came up with a solution. I already have a high interest checking account through one bank. I earn I think 3.26% on up to 25K. So I found another institution that is offering this type of account where you don't have to be a resident of that bank's state. That's pretty rare, as most of these are limited to residents of the bank's state. I just opened the account on Friday. Now I will gather up my spare cash and deposit it in the account. Then I'll get one of my direct deposits switched to this account. I'll sign up for estatements (of course) and then all I have to do is make 12 signature transactions a month. I already have to make 10 for my other card. That's a lot of transactions. But I'll basically stop using my credit cards and just use these bank cards for all purchases. I try to charge everything anyway so I can keep track of all purchases, so I'm optimistic that I'll earn the interest each month.