SACRAMENTO, Calif. — Why do you keep your checking and savings with the same bank?
Balancing your finances can be like walking a tight rope. You may need a safety net, others do better without one.
Keeping your checking and savings in one bank can provide you with a safety net, but some -- like a guy on a tightrope -- do better without the net.
Let’s look at the reasons why you may want to keep your checking and savings accounts at separate banks.
Michael Thomas is a consumer science expert and he says linking your checking and savings accounts can provide a sense of security.
If you overdraw on your checking account, your savings account is there to catch you... but there's a downside to that.
Thomas says the impulsive spender might be better off if the two accounts are kept separate from each other. Having a savings account to help catch you if you overdraw on your checking may provide you with a false sense of security.
Your bank may also offer an attractive package for a checking account, but not the best interest rate on savings.
There are banks that offer perks for keeping both your checking and savings accounts under one roof. They may also waive fees and offer lower interest rates on loans as well.
WATCH: WHY ARE PEOPLE STILL WEARING MASKS?
