patrick.net

If you get more interest in savings and can instantly transfer money to checking, then it seems better to keep most money in savings.

The teller might have just been nice there.

With the rates banks have been paying it's not worth it for the interest, but there are other reasons, such as leaving little money in you main business account greatly limits the damage in case someone fakes a check or gets a debit card info or somehow else manages to initiate a transfer.

So the banks perspective, money in savings accounts is less likely to be moved, and can show up in their book differently, allowing them to leverage even more loans.

Nothing is ever free.

I think they were just being nice. But they probably are also incentivized in some way to open any type of account.

It is much more difficult to steal money from saving account vs. checking.
Now when we have inflation 8% and interest rate 0% on saving account, doesn't make sense to keep money in the bank anyway.

A savings account is absurd in the 21st century.
They are inconvenient in many ways.

Thank you everyone.

Bank workers are instructed by their management to inquire whether a client would like to open a savings account if they see more than a few thousand in the checking account. This is on top of bombarding us with junk mail suggesting that we all open more savings accounts.

Banks see savings accounts as less fluid and can reach further conclusions on investment of those funds than if the money is sitting in a checking account. Banks also provide clients higher interest rates for savings accounts in trade for having the money in the savings accounts.

Frankly, I’m annoyed with the question of whether I want fo open a new savings account everytime I visit my branch.

NuttBoxer says

So the banks perspective, money in savings accounts is less likely to be moved, and can show up in their book differently, allowing them to leverage even more loans.

Nothing is ever free.

They also restrict transfers to a certain number and then penalize you to get your own money from a savings account if you keep taking money out. Basically the bank knows the funds will generally stay in the account and they can loan more against the deposit at 5-25% with the latter number being CC's.

The interest rates are shit on a savings account. There are other options out there too though. Not a pump as I have no interest in the company, but we use Digit for savings. There's a monthly fee, but 1% interest (might be different now) on savings. Also draws from your checking account on goals you set up. Spring break 2023 is already paid for basically and it automatically grabs the money as long as there's money in your checking. Also will send money back to your checking if it gets below a number you set.

I know people might be uneasy about it, but it's been pretty fucking amazing. FDIC insured obviously. We generally hold $20-30k in there. So real interest rate with monthly fee is probably 0.9%. Still better than your standard savings account with BOA, Chase or even credit union. Money can be transferred immediately back to your checking.

We travel a ton, so it's awesome for budgeting for that. And we still use a CC getting those points and then pay it off with what is in Digit. With the CC kickbacks it might be closer to 2-3% on the cash now that I think about it.

Reread the OP. $100K in a checking would be a line in the definition of retardation in the dictionary. Harsh take, but you might need new friends. Hell $40k of that could earn okay returns on a lot of things. He's just making the bank money even if it is an interest bearing checking account, which for fucks sake it better be.

REpro says

Now when we have inflation 8% and interest rate 0% on saving account, doesn't make sense to keep money in the bank anyway.

https://www.dollarsavingsdirect.com/
3.11% right now.

The people who stated it's harder to steal are correct - main reason.

https://redneck.bank/

I don't bank there, I just like to chase the fly around.

A more apt question, "why would you have a savings account?" when brokered CD's and Treasuries (no state income tax!) have more competitive rates.

Check on your brokerage website: one-month CD's and four-week Treasuries offer 3% interest.

The checking account, or a small savings account, ought to be only a pass through for these other places to park cash.

These are brokered (purchased) in $1,000 increments. Even my own freaking bank has higher minimum purchase amount for its "captive" CD with a yield of a fraction of one percent.

yeah, not a good idea to hold a lot in a bank these days. But if you do....

BayArea says

Bank workers are instructed by their management to inquire whether a client would like to open a savings account if they see more than a few thousand in the checking account.

I avoid interactions with the bank tellers. It's a low wage job. Here in SJ, a person cannot make it on that kind of pay.

They see our personal information on their screen. They can see our balances, where we live, etc.

More than once I've interacted with a polite, cheerful happy-talk young teller who had gang tattoos on the neck. They can tip off a Homie about me.

Better to stick with the ATMs.