Need help making decision!

[Savingbtime]

Happy new year everyone!!,!

I have 2 different accounts for 2 different purposes.

Account # 1-- amount is $5000 just ended 1% apy
Account #2-- amount $9000 just started 1% apy

My question is: should i leave the $5000 in the account or add $4700 (leaving just $300 in the account to avoid penalties while earning 0.40%) to the the other account so it can earn some interest for the following year?

The reason for having different accounts is just so I can see my progress. I feel like if I put the two together I will not really know what to allocate to what? I am trying my very best to start off the year good with saving some money.

Please advice on what to do. I really appreaciate it.

[disneysteve]

Personally, I wouldn't have separate accounts like that. So I would just close the 0.4% account and move it all to the 1.0% account. If you can't keep track of the separate amounts in your head, do it on paper, or make a basic spreadsheet on your computer to track how much of the money is for each purpose. Each time you make a deposit, update the spreadsheet to reflect which goal that money is for.

[Savingbtime]

Thank you so much Steve I. Will and will also keep you updated. Again thank you so much.

[Joe Moore]

You might as well close the other account if there are fees or penalties.

[Savingbtime]

Actually Joe Moore, I would have to leave $ 300 in the account to avoid a fee and earn .40%. But the more I think of it, the more I see it as being pointless.
What I wanted to accomplish was to actually see it grow and having allocated accounts for different purposes! But Steve suggested that I just do it on paper and just have one account.
Thank you Joe for your advice also And happy new year to you

[disneysteve]

Actually Joe Moore, I would have to leave $ 300 in the account to avoid a fee

There is a fee for closing the account?

[Savingbtime]

No there is not any fee for closing the account since it has been opened for 1 year. The 1%!deal is just finished on that account.

Would that make a difference Steve?

The more I think about it, the more I see that you are right about keeping an actually spreadsheet on the transactions and keeping 1 account makes more sense; earning is more on having a lumpsum ($14,000) on one account versus diving it on different accounts...

Thank you again for the advice. It is highly appreciated

[disneysteve]

I would have to leave $ 300 in the account to avoid a fee

No there is not any fee for closing the account since it has been opened for 1 year. The 1%!deal is just finished on that account.

Would that make a difference Steve?

Yes. I didn't understand why you would keep the account at all. Just close it. Why leave $300 sitting there?

[Savingbtime]

Done!
Thank you so much for your guidance!!!

[Petunia 100]

The more I think about it, the more I see that you are right about keeping an actually spreadsheet on the transactions and keeping 1 account makes more sense; earning is more on having a lumpsum ($14,000) on one account versus diving it on different accounts...

If the interest rate is the same, the total interest earned is the same, regardless of how many accounts you have. This is called the distributive property of multiplication and it is always true.

I like to keep my savings in a few different accounts, but at the same bank. I see each account and the grand total of all on one screen. But the spreadsheet approach is fine, too. Whatever works best for you.