My credit union offers a rewards checking account that is earning a reasonable rate. (Where reasonable rate = a higher rate than their high interest savings account)
I’m debating moving the contents of my savings account into there and then keeping track of the subaccounts (checking versus savings) in a spreadsheet to take advantage of the higher interest rate. I would earn about $18-25 more per month in interest with all of the funds in my checking account.
I don’t worry about the accounting perspective – I have a good system in place for that. I don’t worry about meeting the minimum number of debit transactions per month – I eat out for lunch most days, which covers that easily.
So then what do I worry about? I worry about having $25,000 sitting in my checking account and being more open to fraud than having $3,000-$5,000 in my checking account and $20,000 in my savings account.
Readers, do you use a rewards checking account? Did you have this same worry? How did you overcome it?