Connecting Your Savings to Your Checking

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Is it a good idea to connect my savings account with my checking account?

Connecting Your Savings to Your Checking

The purpose of a savings account is to save money, but one of the mistakes people often make when they compare savings account rates and open an account is connecting it to their checking account in order to shift money between the two accounts. While this may seem like a good idea, it actually can result in a gradual decrease of your savings.

Imagine this: You're out shopping and you want to buy some books, but you're just a little short of cash in your checking account. How easy would it be to transfer money over from your savings and indulge yourself in this little shopping spree? Now imagine that your savings account is not connected to your checking account and you need to make a trip to the bank in order to move the money over. That could curb your consumer itch and prevent you from slowly spending all your savings.

So don't do the obvious. Choose a savings account with high rates, whether it's at your usual bank or another bank, don't connect it to your checking account, and save.

   

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