My accountant told me I was dumb for keeping money in a checking account

Honestly, I used to just let my paycheck sit in my regular checking account all month and then pay bills whenever. My accountant in Denver finally pulled me aside last spring and said I was literally losing like $200 a year in interest. He showed me how to set up automatic transfers to a high-yield savings account on the first of each month. I only keep enough in checking to cover my rent and utilities for that billing cycle. Now I move the rest to a separate account that actually earns 4.5% APY and I only touch it if I need something big. The total amount I earn from interest in a year covers my Netflix and Spotify subscriptions now. Has anyone else had a professional just straight up call them out on a dumb money habit?

2 comments

2 Comments

kelly.robin8h ago

Oh man, that's a good wakeup call from your accountant. But here's something I haven't seen anyone mention yet - what about cashback checking accounts? I mean, I know people are all about high-yield savings these days, but I found a checking account that gives me 2% cashback on all my bills and groceries. So yeah, you lose a little on interest maybe, but I earn way more back just from my regular spending. Idk, maybe it balances out depending on how much you spend each month.

jade_carter207h ago

2% cashback on groceries adds up fast. Might be smarter than chasing .5% more interest.