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Many banks' debit cards allow you to select "savings" at ATMs for cash withdrawals, and it'll work just the same; I've confirmed this with a number of banks over the years. This is concerning because if your debit card is ever compromised and you have a savings account with the institution, your savings account/balance could be at risk too.
Since noticing this, my savings and checking accounts are at separate banks. Just thought I'd share the suggestion.
The savings account is usually only accessible via ATM (with PIN), not for purchases (used for credit purchases). So, the savings balance is safer regardless. Having them at the same bank makes it simpler and faster to transfer funds in an emergency.
But whatever works for you is great. For both convenience and security, you could have checking and savings accounts at the same bank, accessible via debit card, and then another savings account elsewhere, for longer term savings.
Or just never carry a debit/ATM card on you like I do. I never use debit, and on the rare occaisions when I need a cash infusion my Discover card gets me $60 cash "over" per day at grocery stores & Walmart and my Walmart store card gets me $100 cash over per day at Wallyworld. Pay both/either in full by the due date and no interest charge on the cash. I'm not good at storing numbers in my head so not a fan of ATMs.
@DaveInAZ wrote:Or just never carry a debit/ATM card on you like I do. I never use debit, and on the rare occaisions when I need a cash infusion my Discover card gets me $60 cash "over" per day at grocery stores & Walmart and my Walmart store card gets me $100 cash over per day at Wallyworld. Pay both/either in full by the due date and no interest charge on the cash. I'm not good at storing numbers in my head so not a fan of ATMs.
Dave, I happen to do the same thing. I do actually carry my debit card around, but it is very rare that I use the ATM with it. I am in a habit of knowing ahead of time when I may need cash, and simply get it at the point of purchase with my Discover card.
Total CL: $321.7k | UTL: 2% | AAoA: 7.0yrs | Baddies: 0 | Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping |
Thanks for the post OP
My personal security method is to not use my debit card. I only carry it for post office money order purchases, otherwise I never use it, no atm's ever. I get paid in cash more than other forms, so i'm swimming in it before the bank drop. As for all other purchases, I use either of my 2% cards or whatever offer i'm chasing.
I personally keep my savings and checkings at the same bank for the ease of transfers as mentioned above. I have also recently considered another savings account with better interest rates to hold a larger longterm amount. This account will be for the scenario mentioned by the OP. However, I think one needs the ability to fund his or her checkings account on demand. Its my opinion that there should be at least enough for 1 months bills in the savings account linked to your checkings
@Blodreina wrote:Many banks' debit cards allow you to select "savings" at ATMs for cash withdrawals, and it'll work just the same; I've confirmed this with a number of banks over the years. This is concerning because if your debit card is ever compromised and you have a savings account with the institution, your savings account/balance could be at risk too.
Since noticing this, my savings and checking accounts are at separate banks. Just thought I'd share the suggestion.
The banks I use will let you link (or un-link) accounts to your debit card; the only account that is required is the primary checking account.
I have my savings 'linked' because I like to have the option to make deposits directly into savings using the ATM, but if there was a security concern I would simply have the bank remove ATM access for the savings account. Easy peasy.
I like having them at the same bank for several reasons, a few of which have already been mentioned (instant transfers between accounts, etc.). Some people might like to have them linked for overdraft protection as well.
I have what I called a tiered savings strategy I keep $500 in my checking account that I do not include in my running balance that I can access quickly if needed. I keep $1500 in a local CU (not where I have my checking) that I can get to easily, but not as easy as the cash in my checking. I keep savings for things like down payment on car, cash I am holding for DD, charitable donations, and vacations in a Money Market earning higher interest than other Checking and Savings. I then keep my true emergency savings in 5 CDs with one CD maturing each year, so that when one matures this year I can roll it over to a 60 month, rinse and repeat. If I need this money I might lose some interest in a penalty, but I am OK with that as this is money I don't want to touch.
Edited to add: I acutally have 2 checking accounts that hold an extra $500 each. So in reality I have easy access to $2500 in cash if I need it quickly.
@Blodreina wrote:Many banks' debit cards allow you to select "savings" at ATMs for cash withdrawals, and it'll work just the same; I've confirmed this with a number of banks over the years. This is concerning because if your debit card is ever compromised and you have a savings account with the institution, your savings account/balance could be at risk too.
Since noticing this, my savings and checking accounts are at separate banks. Just thought I'd share the suggestion.
What “Catch Me If You Can” Frank Abagnale Says About Debit Cards
“I don’t have (a debit card),” says Abagnale.
“I use only credit cards, because if somebody gets my card number and charges $1 million, my liability—by federal law—is zero.”
“But when you use a debit card, you’re exposing the money in your account. And even if you use your debit card every day for the next 25 years, it won’t raise your credit score one point.”