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c/finance-forum•david_jones38david_jones38•2mo ago

Vent: My barber said he just keeps his emergency fund in his checking account and it made me pause.

He argued that moving it to a high-yield savings account for the extra 4.5% APY was 'too much hassle for a few bucks', which really made me question how many people are leaving easy money on the table because of perceived complexity.
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4 Comments
joel_jones
joel_jones2mo agoMost Upvoted
Wait, he called a free 4.5% return "a few bucks"? @henryp40 is right, that's literally turning down free money.
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sage308
sage3082mo ago
Guess he's never heard of compound interest, or just really hates free money.
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angela_harris
Screamed at my phone when I read that. Like, I get not wanting to open another account if you're already overwhelmed, but checking accounts are literally paying zero point zero one percent or something ridiculous. Even if he only has a thousand bucks sitting there, that's forty five dollars a year he's just throwing away for no reason. Forty five bucks could cover a dinner out or a few months of Netflix, that's not nothing. I just can't wrap my head around calling free money a hassle when it takes maybe ten minutes to move the money.
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henryp40
henryp402mo ago
That's leaving free money on the table.
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