I'm currently carrying a balance in my checking account, much of which I feel is going to waste, since its not being "invested". The overall total balance in my checking account isn't growing much if at all month to month, but I have enough for about 3 months of living expenses.
I just recently opened a high-yield savings account with an interest rate just above 2%, which isn't great, but better than nothing.
What I want to do is put most of my money in the savings account, and then transfer some into the checking account a few times a month when I have to pay rent/loans/credit car/etc.
I am aware of the 6 withdrawals from savings per month limit, but I was wondering if, overall, the strategy I described above monetarily sound? Are there any pitfalls I should be aware of?
I feel like this is/should be a common strategy, but when I was looking into it, most of the information I found just described the Regulation D 6 transaction limit.
Edit One thing I thought of after asking this question that I don't think has been answered yet -- Is the timing of interest compacting relevant at all here? I believe on the website for my savings account it states that "Interest is compounded daily and credited to your Account monthly". So this sounds like I just need to maximize the time that I have a large balance in the account, as opposed to something like making sure that I have a large balance on the 1st of the month, but someone please let me know if I'm mistaken.