Most financially conscious people keep a slush fund. My slush fund is basically used to pay my mortgage, credit cards, and other bills on autopay, and distribute money into various investments. Most people keep their slush fund in a basic checking account, which earn little to no interest. In fact, most big name national banks only give .01% interest! I use a little known credit union in Illinois, even though I live in Florida and have never visited the bank in person.
The bank is Consumers Credit Union (CCU). They have a high interest checking account that gives 3.09% interest, no ATM fees, and earns interest on up to $10,000. There are a few hoops you have to jump through to get that high interest rate, which are easy to manage and VERY worth your time.
- Get one direct deposit per month. Easy, just setup some or all of your workplace paycheck to use this bank. The majority of my paycheck goes here every other week.
- Access online banking once per month. This is easily accomplished using finance aggregation websites, such as Personal Capital or Mint. I prefer Personal Capital for wealth management, where I think Mint is better for budgeting. I used Mint throughout college to get a better grasp on finances, though I made the switch to Personal Capital in 2016 when I discovered Mint couldn’t track my mortgage.
- Receive eDocuments. Sure, easy, no one wants more snail mail.
- Complete 12 pin-less debit transactions. This is the only one that requires manual effort. For this, both my brother and I have our CCU debit card linked to Facebook Messenger. Every month, we send each other 12 individual one cent transactions. Each one registers as a pin-less debit card transactions, and our obligations are met! Even if you don’t hit the 12 transactions, there are no account fees – you just earn a measly .01% interest that month.
This yields me about $10 per month just off of my money I have in a holding pattern, waiting to pay my utility bills, credit cards, and mortgage. There are a few small tasks you have to setup to take advantage, but are well worth checking out. They even have a few tiers of higher interest checking accounts available, but those require using credit cards. I earn better rewards and benefits the way I use credit cards now more than the extra interest those accounts would yield.
Do you use a different or (gasp) better bank account for your slush fund? Let me know in the comments!