Get the App:
How’s it going everybody this is beat the bush i often make videos about where you can get the highest interest rate for savings account checking account whatever but i haven’t talked about the strategy in which you can take advantage of all these accounts today i’m going to talk about the overall framework at which i created for myself so that i can jump from
One account to another very easily now to put simply i take a hybrid approach to all this i generally use a chase checking account for my main checking purposes and my atm usage i have a backed up bank of america atm card and for travel i have a charles schwab investor checking account but i do not carry this card around with me unless i go traveling now for this
Cash strategy you have to realize that this is for your cash only this is not for investing money so when i talk about oh two point five percent interest rate you might go oh it’s very little this is for cash that you’re not going to invest this is your emergency savings cash that you think you’re gonna be using somewhere between three months to 12 months or so
So this is money that you want instant access to and you do not want to go around selling investment just so that you can tap into this if you think you’re gonna buy a car in the next 12 months well you might want to have 30,000 40,000 dollars on it just so that you can pay off that car in cash if you’re gonna be buying a house soon you might have a huge amount of
Downpayment in a checking account that’s not collecting very much interest at all now for high-yield savings account i’m not even gonna talk about the lesser ones i’m going to talk about the top three that i know of right now you have to know that high-yield savings account you can only withdraw six times per month this is limited by the federal government that
Is if you try to use your savings account like a checking account you which draw from it every single time you need some money and then you go over this six time limit you’re gonna have to end up paying some sort of fee so for these high-yield savings accounts they typically do not have a very good atm network and i don’t even care about that because all i care
About is their interest rate i don’t care about any of their features now i’m gonna talk about why typically it takes about three to five business days for you to do an automatic clearing house ach transfer from the savings account to your most you checking account for me it goes something like this i have my chase savings account and i get all these different
Kind of high-yield savings account and i tend to switch between them and i will not connect any kind of bill payments or anything to those checking accounts and then whenever i would need some kind of money to transfer from my savings account to my checking account i can do that in a slow rate three to five days is okay because in my regular chase savings account
I keep usually between one and two months worth of cash in there that is i can just ignore that account for a whole month and it has enough cash in it to pay all my bills all my bill payments you know credit card payments hoa fee water bill utility bill any kind of bills that’s not going through my credit card goes through that particular checking account where i’m
Not earning very much interest and this particular chase account whatever account that you like for yourself generally stays very still i’ve had this account for more than ten years and i don’t cancel this account out very often because there’s so many things connected to it now for yourself you might want to use a credit union or whatever account where you have
An atm that’s very close to you so just pick one of these checking accounts that’s very convenient for you that you have instant access to an atm very close to you and then you go and get all these high-yield savings account whatever it is that is in vogue at the time that has the highest yield you get that and then you put money in there you do an ach transfer
Into those accounts and then you just kind of slosh it back and forth and then if one of those high deals savings account is not giving you a high yield anymore okay you know you just axe it kill it off start at another account and then put the money back into your checking account transfer it in transfer it back out into another one that’s why it’s so easy for
Me because i have nothing no strings attached to all these auxilary accounts that have started so i can just kill them off very easily start another one just because they have a higher rate and then it makes mind life very easy so let me talk about those auxilary accounts right now you can get 2.5% apy which is something i have right now up to $10,000 matador
App i do have a referral link down in the video description if you guys are interested the next best thing right now is the 2.4 for betterment savings and checking account you have to get the checking account i personally signed up for this the promotion for the 2.4 four percent will go all the way up to 2019 so you might sign up for this it’s gonna get 2.4 4%
But after this i think it’s gonna drop down to something like two point one seven percent so be aware that even if you get this account it’s gonna drop down to a little bit worse than the next account that i’m going to talk about which is the two point 3 2 percent wealthfront cash account they lowered this from the 2.5 7% anyway those are the best ones because i
Have more than ten thousand dollars of cash laying around i put $10,000 into this matador app and the rest i think i’m just gonna put in either wealthfront or betterment i signed up for the betterment one but you know they still have to tell me if i got accepted or not so that i can put money in there so this strategy it never occurred to me to make a video about it
I just always talk about all the best account is this or this and then behind the scenes i’m using the chase account as my main account and then i just kind of sloshed things back and forth to get the highest yield savings account it’s just something i never thought of making a video about about the the strategy behind it so you know now i realize it so i’m making a
Video it’s not that i’m hiding it or anything the biggest issue with keeping a chase account with one or two months worth of money in there is that you do not want to over draw the account because whenever you over draw an account they’re gonna charge you some hefty fee i don’t even know how much it is i’m thinking something between i don’t know twenty five thirty
Five dollars so having about one to two months worth of cash in there allows me to go on vacation without worry and i can come back you know if i go on vacation for a whole month or something and then there might be withdraws maybe a thousand something dollars do to a credit card maybe there are some bills here and there because i have one or two months worth of
Cash in there i know that it’s not gonna dip below zero i do have another thing attached to this checking strategy which is the thing i mentioned the very beginning the charles schwab bank high-yield investor checking account now when they say high-yield is not really that high yield because it’s only 0.37% apy this is you know in comparison to two point three two
Percent which is two percent higher right but for a chicking account is actually a very good thing because for most checking account you’re gonna have money just sitting there idle right so having point three percent it’s something but you know for me i look at it as you know i don’t really care about this point three seven percent i look at it more in terms of i
Want to use this when i go traveling internationally it has zero monthly fees zero minimum balance international atm fees are refunded which is a very big thing i tried using my chased atm card internationally they charge me a bundle of money like five dollars five to twenty dollars every single time i would draw money so with this account i know it was kind of
Like an annoying thing for me because this is something i used once or twice a year so it does take a little bit of your willpower because you have to you know set aside time and then go okay i’m going to sign up for this particular account just so that i do not have to pay for atm fees when i go international and i’m glad i did because last time i used it i must
Have saved i don’t know sixty dollars a hundred dollars just from no foreign transaction fee and no international atm fees and i checked that after i used it they go oh yeah you know they charge you three dollars for using this atm in like barcelona or somewhere and then at the end of the month they do refund you so i verified that this does work what i do is if
I know i’m gonna travel for one week or two week right i kind of allocate roughly how much i think i’m gonna spend times two so i want enough money in there so that you know just in case i want to buy something just in case there’s some emergency maybe i need to buy a plane ticket or something that i can withdraw enough atm money and have enough in there just so
That i know you know i can feel comfortable going travelling with this amount that’s just sitting there of course if i am really really in a bind i can use my original atm card payday atm fee or whatever but i try to prepare enough so that i have 150 to 200 percent of what i think i might need so there it is this is my entire strategy use whatever checking account
That you like that has atms that are near you put one to two month worth of your expenditures in there you also have an auxilary schwab international checking account for your travel if you don’t do international travel okay you don’t need that but i go around getting all these high-yield investor checking account hijacking account and then i get them as i see fit
I cancel them as i see fit i already went through more the marcus account i went through the cit bank account i still have the wealthfront account which i am kind of shrinking the amount in there and putting it more into matador putting $10,000 into matador and this strategy has helped me able to very easily cancel accounts and start up new ones thanks for watching
This video i know this i don’t know this might sound complicated but this is like in my entire strategy that i’ve employed for the past 10 years it’s worked very well for me in terms of minimizing the amount of effort i need to do in order to jump from one account to another thanks for watching this video if you guys are interested in that matador account where
You get 2.5% apy on your cash allocations check out my referral link down in the video description below don’t forget to give me a like comment down below let me know if you’re gonna employ this particular strategy yourself and as always don’t forget to push that subscribe button and ring that bell icon thanks for watching
Transcribed from video
My Cash Holdings Strategy By BeatTheBush