Since saving accounts like sofi give like 4.6% instead of 0 on checking (I do realize some banks still enforce the 6-transaction limit rule, however, lots of banks also no longer do). Why do I realistic need a checking account when I can just bank primarily with the saving and get the interest as well.
Thank you in advance guys/gals!
In: Economics
You can’t write checks. OK, that’s not much of a reason when almost everybody uses electronic transfers and ATMs. Many people just have savings accounts and credit cards. If you pay the bill in full every month to avoid interest, credit cards are faster and more widely accepted than checks.
Banks usually won’t allow you to write checks off a checking account, and might not allow access to bill payment tools with a savings account.
this isn’t a very technical reason, but I find having a chequing account seperate from my savings account makes it a lot easier psychologically to save money. After a while you start to forget that the money in your savings is even yours and the thought of withdrawing from it is almost painful.
My HOA doesn’t take electronic payments.
I’ve had contractors that don’t take electronic payments
Followup question: do venmo and/or zelle work with savings accounts?
Prior to April 2020, there was a federal regulation limiting savings account transactions. Somehow that was supposed to protect bank assets and health. That limit was deleted at the start of COVID and some banks and consumers haven’t adjusted yet.
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