Setting in For a Long Winter's Nap

[Midwest Player]

MWP- What interest rate are you getting in your bank? (Assuming you actually deposit into a bank and don't transfer into bonds/CDs/etc)? I know most banks are offering something like .25%. There are some online banks that offer 2% to 3% interest, such as Ally, American Express.

Another idea you might be interested in:
Every month I receive letters from Chase Bank saying that if I open an account with them, deposit $5000 and set up a direct deposit, and keep the account open for 3 months, they will give me $600 or so.
I'm not sure if you get those offers or not, but it could be something to look into for you.

The interest rate on my checking account is not even close to being as good as .25%. They really give us a screwing up here in the sticks. I also have a lot of money tied up in my checking account. If you remember, I did a post about 6 months ago about how much money do folks keep in their checking account. Everyone thought I was nuts, well at least 21forme did, for having so much tied up in a low interest account. Anyway, since then I did move some money out of checking into a money market account at my brokerage. I presently still have over $40,000 in checking, and it is probably still too much. However, I do want at the minimum at least 6 months of expenses to remain in my checking account at all times. I explained my reasons for this before. So yes, this trade off is costing me something in lost interest income, but for me the security is worth the cost.

Oh, I did just get an offer similar to what you mentioned from my local bank, but it surely wasn't as good as your offer. They wanted me to deposit $10,000 in their saving account which by the way is earning .01% interest. Then I had to keep it in the account for 180 days and it had to be new money. If I withdrew the money sooner I would lose their $200 big bonus they were going to give plus a penalty for early closure of the account. They didn't mention the amount of the penalty. If I could have transferred some money from my checking, I might have done it, but it surely wasn't worth the time or effort to get new money. I can earn almost as much with a 2% CD in my brokerage. I tossed the offer into the trash.

[21forme]

I'm not sure why I'm responding, but this is such incredibly poor financial planning. Go back and reread my earlier response to you:
https://www.blackjacktheforum.com/sh...l=1#post268064

Look at what interest rates you can get in a money market account at an online bank: https://www.bankrate.com/banking/money-market/rates/

$40K * 2% = $800. That's 160 red chips you are throwing out the window, to put it in perspective with your BJ play!

And if your wife's unfamiliarity with your JOINT finances is of concern, teach her!

[Bigdaddy]

This is an interesting dialogue. As a (retired) tax professional, I'm actually enjoying it. A couple comments:

1. Ditto 21forme's comment on getting into an online savings/checking account. Go to Ally Bank and open a checking and savings account. The savings earns 1.8% and you can move it freely to the checking account when needed. It's basically like having it all in checking. I keep most of my cash there (CDs, savings, checking) - it's a great bank with excellent customer service.

2. You're overdoing your tax-prep organization (fair value worksheets etc.). Sounds like your return is comprised of a few 1099s and maybe some rental real estate income. Just keep a couple of folders in your desk for tax stuff and throw docs in there as they come in. When it's all there in February or so, then organize it, sit down with Turbo Tax and put it in. Shouldn't take you more than a day to do your taxes.