Tilted Forum Project Discussion Community - View Single Post - Is it bad to have too much money in a savings account?

Baraka_Guru · 12-29-2007, 09:25 PM

In an investment savings account (ISA). The interest rates are higher than regular savings accounts (typically between 3 and 6%), and the money is always accessible.

I've heard some rules of thumb regarding cash for personal use as well: Have at least 1 or 2 months' salary (more might be better) in an easily accessible account, such as an ISA. This is good for emergencies, and splurges, as you say. There is nothing "bad" about having too much cash; there is only "better" if you use it for something else. There are limits you need to set for yourself to determine how much is "too much."

An example of a service for these accounts would be ING Direct.

12-29-2007, 09:25 PM	#3 (permalink)
Baraka_Guru warrior bodhisattva Super Moderator Location: East-central Canada	In an investment savings account (ISA). The interest rates are higher than regular savings accounts (typically between 3 and 6%), and the money is always accessible. I've heard some rules of thumb regarding cash for personal use as well: Have at least 1 or 2 months' salary (more might be better) in an easily accessible account, such as an ISA. This is good for emergencies, and splurges, as you say. There is nothing "bad" about having too much cash; there is only "better" if you use it for something else. There are limits you need to set for yourself to determine how much is "too much." An example of a service for these accounts would be ING Direct. __________________ Knowing that death is certain and that the time of death is uncertain, what's the most important thing? —Bhikkhuni Pema Chödrön Humankind cannot bear very much reality. —From "Burnt Norton," Four Quartets (1936), T. S. Eliot Last edited by Baraka_Guru; 12-29-2007 at 09:27 PM..