Question

Question on how or where do you keep your big cash ( sinking founds ) I use Wells Fargo ( Not my favorite but is what we use) So right now what I have been doing is getting all the sinking found cash and put it in my envelopes and then in a small safe. By the end if the year this is about 10-15K. But I still not feel good about this ( if there is fire or we have to get out of the house and won’t be able to be back and such I will be losing all that money ) So how do you Jeep your sinking founds safe. I was looking into those apps like Qapital and such but how safe are those to keep your money. How do you deal with this?  

Answer 1

I opened 9 savings accounts and a checking with Ally bank (online only). Each savings account is a different sinking fund (and one for our emergency savings) & when I need to spend from it, I can transfer the money to the checking account and use the debit card. Ally uses Zelle to transfer between banks, and I know WF does as well, so it would be very easy to transfer between the two as well. PLUS Ally has an interest rate of 1. 6% right now, including on the checking account.  

Answer 2

Please do not keep that amount of cash on hand. You should get a savings account (many are free) and you can tie it to your checking to make those sinking purchases. But also you cannot now take it all down to the bank as it puts a res flag to IRS like you are a criminal.  but that much money should be working for you (any interest is free money)

Comments

@saboteur I am just worry about all the extra accounts and the interest I have to pay to maintain. WF charges interest on every extra account I want to open so is a no.  

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@nudicaul then pick a different bank that offers the options you need. The Ally bank the other commenter mentioned sounds like a great option. Esp since WF doesn’t charge for Zelle. You could deposit some cash then xfer to there. Or maybe a local cr union that has multiple cards for different sinking funds. (Btw i have wf and my savings is free. My checking is linked however and requires me to make 1 xfer to svgs per mo and 10 debit card transactions on checking ‍♀️ so there are definitely many, many products available) Search around until you find the right fit for you.