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Lv 6
. asked in Business & FinancePersonal Finance · 1 decade ago

Should I set up a savings account or keep my money in checking?

I'm currently a college student. Between working and saving up over the years, I've collected about $3,500 in my checking account. My boyfriend says it's not a good idea to have that much money in a checking account.

Should I set up a savings account? Would my money be safer that way?

Update:

Thanks for all the ideas guys! I don't have a debit card because I'm paranoid I'll lose it. I've had my checking account since I was 16 (I'm 19 now) and have had no problems so far.

The CD idea is great :)

3 Answers

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  • Andrea
    Lv 7
    1 decade ago
    Favorite Answer

    It would be safer if you have a debit card because if you lost the debit card, your checking account could be wiped out.

    You could also make a little interest in a savings account. You could even split it up to make a bit more by taking a chunk of it that you're sure you're not going to need & put it in a CD. Talk to your bank about your options.

    And keep up the good job saving money!

  • 1 decade ago

    1. do you have a debit card on your checking account? and if you leave it all in checking, is there any chance you will spend the money on impulse purchases? in my experience, if the money is in my checking account, i am more likely to spend it. but maybe you are more disciplined.

    2. you probably don't get any interest on checking. if you don't expect to need all that money any time soon, how about putting a few hundred in savings, to have money accessible in case of an emergency, but then getting some CDs, like a 3 month, 6 month, 9 month and 12 month, with, say, $300-500 in each? that way you will at least get a little interest.

  • 1 decade ago

    Savings accounts do not pay what they used to, but they pay more than checking accounts. Try Ally Bank. They pay 1.85% for a regular savings account. http://www.ally.com/index.html

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