Putting money in savings and then taking it out later?

Question

I have a money market savings account with Capital One. In my checking account I have more money than I need RIGHT NOW due to my tax refund, however, in a few months I will need that money later on as my budget starts to even out. Should I take the excess money I have now in my checking, move it to my savings, allow it collect interest NOW, and then pull out what I need later on? Or just leave the excess in my checking and just leave my savings intact?

Answer 1

In your situation I would put it where ever the best interest rate is to gain more money, usually the money market, and then pull it out to use it when you need it. The nice thing about money market accounts is there is no penalties but the interest rate is usually lower.

Answer 2

Putting your money in the account that would earn the most interest is the best solution...however, remember that there are restrictions on making withdrawals from money market accounts. Withdrawing the money through an ATM or in person at the bank is fine, but should you ever want to write a check to a 3rd party, you're restricted to 3 of those per statement cycle. You're also allowed 3 by electronic transfer (internet banking, telephone transfer, debit card) for a total of 6 per statement cycle. The powers that be (banking regulators) really want people to treat money markets like savings accounts even though you can get checks with them.

Answer 3

The benefit of a money market account is the flexibility you have putting money in or out. Put the extra money in the account now, and take it out later, when you need it.

Answer 4

Money market account or short-term CD (you might get a better rate on a CD if you have some idea when you'll need the money, but there's a penalty if you take it out early).

Answer 5

Move it to savings until you need it, if you can wait a whole quarter to get interest credited before you take it out.

Answer 6

It's always better to earn money with your money...But trying to keep from drawing money from a savings accnt. from turning into a habit can get tricky.....

Answer 7

it happen to me alot...