Table of Contents
Introduction
If you have an extra $10,000 sitting in your checking account, it’s time to consider moving it to a high-yield savings account. By doing so, you can earn more interest and potentially grow your money over time. In this article, we’ll explore why transferring your emergency fund stash to a high-yield savings account can be a massive win for your finances. We’ll also discuss the potential risks of keeping a large sum of cash in your checking account and what happens to your bank account when you pass away.
Why You Should Open a High-Yield Savings Account
Having an extra $10,000 in your checking account may seem like a good idea, but it’s actually a missed opportunity to earn more money. By keeping your money in a regular checking account, you may be missing out on hundreds or even thousands of dollars in interest.
Instead, consider opening a high-yield savings account. These accounts offer higher interest rates compared to traditional savings accounts and can help your money grow over time. For example, if you deposit $10,000 in a high-yield savings account with an Annual Percentage Yield (APY) of 1.5%, you could earn $1,411.66 in three years, assuming the APY remains constant.
It’s important to note that APYs can change over time, so it’s wise to regularly monitor your account and compare rates. Transferring your emergency fund stash to a high-yield savings account can be a smart financial move that allows you to make the most of your money.
The Risks of Keeping a Large Sum of Cash in Your Checking Account
While it may seem convenient to keep a large sum of cash in your checking account, there are potential risks associated with this decision. One of the risks is the possibility of structuring deposits, which can lead to legal and financial scrutiny.
Structuring deposits refers to the practice of breaking up a large deposit into several smaller ones to avoid triggering the reporting requirement for deposits over $10,000. Under the Banking Secrecy Act of 1970, banks are required to report cash deposits exceeding $10,000 and file a Currency Transaction Report.
While structuring deposits may seem like a harmless way to avoid attention, it is illegal regardless of whether the money being deposited is from legal or illegal activities. Banks are obligated to file a Suspicious Activity Report if they suspect structuring, which can trigger a full investigation and potential criminal penalties.
To avoid problems with deposits, it’s important to be aware of the laws and regulations surrounding cash deposits. If you need to deposit a large amount of cash, it’s best to do so in a transparent and lawful manner. If you have concerns or questions, it’s always a good idea to consult with your bank to ensure you’re following the proper procedures.
What Happens to Your Bank Account When You Pass Away
When you pass away, the fate of your bank account will depend on several factors, including whether you have a joint account and whether you have designated a beneficiary.
If you have a joint account with a spouse or another person, the account will generally become the property of the joint holder upon your death. Similarly, if you have designated a beneficiary for your bank account, that person will typically be entitled to receive the funds in the account.
However, even with a designated beneficiary, the account may still need to go through the probate process. This is a legal process where a deceased person’s assets are analyzed and distributed according to their wishes or state laws. Having a will can make the probate process smoother and help ensure your money goes to the intended recipient.
If you do not have a joint account or a designated beneficiary, and you pass away without a will, the money in your bank account may become the property of your state. It’s important to have a will in place to ensure your wishes are carried out and to designate a beneficiary for your bank account.
To designate a beneficiary for your bank account, contact your bank and inquire about the necessary paperwork. Taking the time to designate a beneficiary can help ensure that your money goes to the person you care about after your passing.
4 Little-Known Perks of a Costco Membership
Costco is known for its loyal members and offers a range of benefits that may not be well-known to all. Here are four perks that Costco members may not realize exist.
1. RV Parking
If you’re an RV enthusiast or planning a vacation in an RV, you’ll be pleased to know that some Costco locations allow overnight parking for RVs in their lots. This can be a cost-effective option for travelers, as overnight parking is free. To find out if a specific Costco location allows RV parking, check the Costco locations finder and contact the store manager for more information.
2. Home, Auto, Renters, and Specialty Insurance
Costco offers insurance options through its partnership with CONNECT, powered by American Family. Costco members can enjoy discounted rates on various insurance needs, including home, auto, renters, and specialty insurance. Additionally, Executive members may qualify for additional benefits such as roadside and lockout assistance.
3. Home and Business Supplies
In addition to the regular household items, Costco offers a range of home and business supplies at discounted prices. Members can save up to 50% on items such as checks, ink stamps, and address labels. Executive members enjoy even deeper discounts on these supplies, making it a cost-effective option for both personal and professional needs.
4. Floral Delivery
Sending flowers can be an expensive endeavor, especially when delivery costs are factored in. However, Costco’s online floral department offers a wide selection of bouquets for various occasions, and the best part is that delivery is free. The price listed on the site is the final price you pay, making it a budget-friendly option for sending flowers to loved ones.
By taking advantage of these lesser-known perks, Costco members can maximize their membership and enjoy additional savings. It’s always worth checking periodically to see if there are any new benefits or promotions available to members.
Conclusion
If you have an extra $10,000 in your checking account, it’s worth considering moving it to a high-yield savings account to earn more interest. Keeping a large sum of cash in your checking account can come with risks, such as potential legal scrutiny for structuring deposits. When it comes to your bank account after your passing, having a joint account or designating a beneficiary can help ensure your money goes to the intended recipient. Finally, Costco offers various perks to its members, including RV parking, discounted insurance, affordable home and business supplies, and free floral delivery. By taking advantage of these perks, Costco members can make the most of their membership and save money.
