Alto Astral wrote:I am starting to do this partially with my 360 savings account (0.75%). Just 2 withdrawals / month: mortgage and my credit card used for most expenses. Maybe the occasional transfer to Vanguard Taxable. All other smaller credit card balance, utility bill etc from Chase. Maybe I'll move those to 360 Checking. 0.20% (360 checking) is still better than 0.01% (chase checking) You can probably do this strategy with the Money Market account (1%)
Capital One 360 has had some stupid rates and thresholds. I still have $0.75 parked in the savings account right now (interest added after transfer). Before money market, I had over $50k parked there in a checking account for a short time (might have been over $100k, but I think the thresholds may have changed), and I was shuffling them between savings and checking to get the higher interest rate. Money market has made it simpler, but I still have 3 accounts there that I'd like to reduce to 1 if they were more sane about their rates. Still, since it's all at one institution, and its all one login, it's not so bad. Essentially, I was using their checking account like a savings account because the interest rate was better. I could have opened up an Ally savings account and gotten 1% instead of the 0.9% in the checking, but wasn't worth the extra paperwork to get an extra $0.30 a day. I might have made $20 to $50, but still have to pay taxes on it. If the difference in interest was more or this were a recurrent event, I would be more inclined to optimize and maximize.
No Minimum 0.75%
$10,000 or more 1.00%
$50,000.00 – $99,999.99 0.75%
$100,000 or more 0.90%
For savings, choose between savings and money market depending on balance. For transactional account, just use a checking account here or elsewhere. Or if starting from scratch, Ally savings is 1% for all balances. Simpler.