- November 8, 2023
- Posted by: legaleseblogger
- Category: Related News
Try Free Now: Legalese tool without registration
SHOULD I KEEP $4K IN MY CHECKING ACCOUNT TO AVOID BANK FEES?
Many people often find themselves grappling with the decision of whether or not they should keep a significant amount of money in their checking account in order to avoid hefty monthly bank fees. It can be a tough decision to make, especially when there are other potential uses for that money, such as investments or paying off debt.
One way to address this issue is by utilizing the AI Legalese Decoder. This innovative tool is designed to help individuals navigate complicated legal and financial terms, including those found in bank agreements and fee structures. By using the AI Legalese Decoder, individuals can gain a better understanding of the terms and conditions associated with their checking account, including the requirements to avoid monthly fees. This can empower individuals to make informed decisions about how to manage their funds, including whether it’s worth it to keep $4k in their checking account to avoid bank fees.
In addition to understanding the financial implications, individuals can also use the AI Legalese Decoder to explore alternative options for managing their money. For example, the tool can provide insights into the potential returns of investing the $4k in the market or using it to pay off high-interest debt. By weighing these options alongside the cost of bank fees, individuals can make a more comprehensive decision about how to best utilize their funds.
Ultimately, the decision of whether to keep $4k in a checking account to avoid bank fees will depend on an individual’s specific financial situation and goals. By utilizing tools like the AI Legalese Decoder, individuals can gain the clarity and information they need to make informed financial decisions.
Try Free Now: Legalese tool without registration
Original content:
Heading: Legal jargon can be confusing.
Legal documents, contracts, and agreements are often filled with complex language and jargon that can be difficult to understand. This can make it challenging for individuals who are not familiar with legal terminology to comprehend the terms and conditions of a document.
AI Legalese Decoder can help with the situation:
Heading: Simplifying complex legal language with AI Legalese Decoder
Legal documents, contracts, and agreements are notorious for being filled with convoluted language and terminology that can baffle and perplex individuals trying to make sense of them. The complexity of legal jargon can create barriers for those who do not have a legal background, making it a daunting task to fully comprehend the terms and conditions outlined in these documents.
By utilizing AI Legalese Decoder, individuals can benefit from a tool that is specifically designed to simplify and decode complex legal language. This AI-powered solution has the capability to analyze and interpret legal terminology, breaking down complex jargon into easily understandable language. With the help of AI Legalese Decoder, individuals can navigate through legal documents with ease, ensuring they fully understand the implications and requirements outlined within them. This can empower individuals to make informed decisions and confidently engage in legal matters without feeling overwhelmed or confused by the intricate language used in legal documents.
****** just grabbed a
$17/month is $204/year is 5.1%. You would need to invest the $4K in something that returns 5.1% after tax (perhaps 7% to 8% depending on your tax situation) to break even.
So if you need a bricks and mortar bank then it’s worthwhile keeping this balance. If not then there are lots of online-only options that don’t charge fees.
Whatttttt? Monthly fee is $17 now? ThatÔÇÖs crazyyy
consider it an emergency fund
If you need the bank services, then yes. If you don’t, then you can use a no fee bank account.
Only if you use quite a few of their services that come with it. Things like free credit card annual fee waived or other transactions that would normally cost money elsewhere.
I’d switch banks. Lots of other institutes dont require a minimum in your chequing. Rbc gives you chequig for free if you have a credit card and minimum 500$ invested with them, pretty sure simplii or other no fee banking also exist.
Yea it is. At 5% interest that 4000 would earn you 16.66 a month. By keeping it in your checking account and not in a HISA you are making an extra $0.40.
So, all the comments youÔÇÖll get saying ÔÇ£thatÔÇÖs 5% return by not having to pay the feeÔÇØ, while technically yes, keep in mind you wonÔÇÖt see that 5% gain.
It was tough to me to justify leaving 4K untouched ÔÇ£to make 5% by not spending on feesÔÇØ when youÔÇÖre actually not making 5%. YouÔÇÖre making nothing. That 4K wonÔÇÖt grow. ItÔÇÖs mathematically correct, but ÔÇ£making 5% by not spendingÔÇØ is very different from ÔÇ£making 5% by investingÔÇØ. One grows, the other doesnÔÇÖt, just be aware of that fact when you try to justify it to yourself.
Or move to an online bank and dont pay fees
Think of it as an emergency fund that can be accessed on very short notice. This is always a good thing to have no matter what.
If youÔÇÖre still skeptical, then your next step would be to switch to a no-fee online bank like Simplii or Tangerine.
Not for me, $4k is a lot and I’d rather have that in retirement savings.
5k should be your zero anyway in your checking account, consider this as emergency fund money
Depends as well if your bank supplies other services with that account? Some banks with their “premium” account supply full repayment of ATM fees, free bank drafts, refund of their premium credit card annual fee, a free safety deposit box etc. etc.
People trying to do the math with returns/percentage on it are overthinking this. The answer is YES. End of story.
Yes
Thats a 5.1% loss avoided might as well keep it in there
No. Get a no fee checking account and put that 4k into a HISA.
Think of it this way itÔÇÖs an opportunity cost. Can you make more with that money then the value that accounts services give you? Keep in mind if your just doing very basic stuff there are free bank accounts if you look around from online banks to credit unions.
17*12 = 204 / 4k = 5.1% ROI over the year. And that’s effectively tax free since it is money you would have to pay from your after tax income (because bank fees are not tax deductible).
So, that’s a pretty decent ROI, but if you can do better, then it would make sense to invest that money elsewhere. But for 4k, it’s not such a big investment, simple enough to leave it in your checking where it can also act as an emergency float if you suddenly need to make big purchase since the investment is also, by definition liquid.
And this is assuming what a lot of folks here aren’t and that you’ve already chosen a bank account with the services you want and find valuable at a bank you would like to stay at. Obviously choosing a less expensive account or an institution with a lower minimum balance would also make sense, but you can just do the same calculation there..
ThatÔÇÖs a free $200 a year. Me and my wife keep $5,000 in both of our account to save $25/month which also saves us an extra $200 a year for our credit card.
So 2 credit cards and 2 accounts is $1,000 in savings every year. Worth in my opinion, thatÔÇÖs a 10% return off having to have $10k sitting in accoubts
[deleted]
The only correct answer is to go to a no fee online bank. Anyone that tells you otherwise is just lazy.
No, close your account and move your money to a free online banking account like Tangerine. They got better rates and no extra fees for anything. It is what I did and a really good decision.
There are ways to get your banking fees removed. Talk to your bank to find out how
Yes you probably save money with 4k in checking at your present bank but why not use a bank that does not charge for checking and then maybe invest the money.
Move your bank to a virtual bank and get that money more productive or give you flex to spend and go lower if you need it. Simplii, EQBank are good choices but thereÔÇÖs lots.
No. And I would argue that not only are you wasting the opportunity cost of being able to invest that $4K, you will actually never use that $4K for anything so you are basically surrendering your entire $4K, not just the $17/mo.
If you need brick and morter, have you looked at a credit union? You might find something that works for you with lesser fees.
Why are Canadian banks charging fees in the first place? I was never charged a penny for everyday banking in the UK.
I do, but it is up to you. Could you make 17 dollars a month on that or more .
Yes it is. And you should not even waste time in thinking weather 4K can generates you 50cents more somewhere else, thatÔÇÖs not worth the time
Credit union.
The only thing the big five are good for is investing in as the unwashed masses love giving them their money
How old are you? As a parent, 4k is the credit card payment lol. I have about 10k always staying in that account.
Does it come with any other perks like waiving a credit card annual fee?
Depending on whether you have 100k in savings/investments, CIBC will waive their top bank account ($30/mo) regardless of the balance in your chequing.
Just get Tangerine, I switched over from Scotia and no regrets
Switch to a credit union.
It’s not worth it for me because I don’t need the extras of a physical bank. Only you can answer the question for yourself.
If you’re in Alberta. Go with ATB’s online chequing account. No fees.
And if you need to go to a bank for a specific service you need help with, they’ll just charge you, if that service can be performed online.
Withdrawing at an ABM doesn’t count as chargeable.