Indiana
I searched around but couldn't seem to find any advice on it.
Basically, I've created a new savings plan. I have 4 total bank accounts. One checking and one savings at a local bank that I use for all my bills going out. And one checking and one savings at a bigger branch (name left out unless it's relevant).
Let's call each of these accounts:
Local || Bigger bank
1C || 2C
1S || 2S
The bigger bank allows me to open accounts with a credit card. It puts limits on how much you can charge to start out. $500 max. So both 2C and 2S are sitting at $500 each for a total of $1000. What I did was open an account, slowly save up the money in 1C, then paid off the CC (before the month ended, I don't keep balances). The reason I didn't just save the cash and then open it with cash is twofold. 1) I get rewards points. 2) I have a habit to spend money. I'm trying to forge a savings plan around that issue that accommodates it. I do NOT touch the account balances in 2C or 2S. The problem with 1S is that it's too easily accessible. These two aren't.
My legal question comes in here. As of right now, I've done nothing wrong (I'm pretty sure). Let's say I continue this. I open up another savings account with the bigger bank (2SS). 2SS will have the same $500 balance as the other 2. Now, would it be illegal to open this account, transfer the funds into 2S (effectively making balance in 2S $1000 and balance in 2SS $0), and then close 2SS? Also, would the bank have a problem with that? If I let it sit there for a month and then did it, would it be any better? My main worry is that they'd assume I'm kiting money. But I haven't even been issued checks from them yet. I'm not sure I even fully understand how kiting works, all I know is that it may look as if I am.
I know that I could take a cash advance on my card but I lose my intro 0% apr on it and my apr on cash advances is 22%. Not sure I really want to go that route yet. And I know the easiest solution is saving the money but it really is a lot easier to save when I have an actual debt on the line that I HAVE to pay.
Thanks in advance for reading and any advice.
I searched around but couldn't seem to find any advice on it.
Basically, I've created a new savings plan. I have 4 total bank accounts. One checking and one savings at a local bank that I use for all my bills going out. And one checking and one savings at a bigger branch (name left out unless it's relevant).
Let's call each of these accounts:
Local || Bigger bank
1C || 2C
1S || 2S
The bigger bank allows me to open accounts with a credit card. It puts limits on how much you can charge to start out. $500 max. So both 2C and 2S are sitting at $500 each for a total of $1000. What I did was open an account, slowly save up the money in 1C, then paid off the CC (before the month ended, I don't keep balances). The reason I didn't just save the cash and then open it with cash is twofold. 1) I get rewards points. 2) I have a habit to spend money. I'm trying to forge a savings plan around that issue that accommodates it. I do NOT touch the account balances in 2C or 2S. The problem with 1S is that it's too easily accessible. These two aren't.
My legal question comes in here. As of right now, I've done nothing wrong (I'm pretty sure). Let's say I continue this. I open up another savings account with the bigger bank (2SS). 2SS will have the same $500 balance as the other 2. Now, would it be illegal to open this account, transfer the funds into 2S (effectively making balance in 2S $1000 and balance in 2SS $0), and then close 2SS? Also, would the bank have a problem with that? If I let it sit there for a month and then did it, would it be any better? My main worry is that they'd assume I'm kiting money. But I haven't even been issued checks from them yet. I'm not sure I even fully understand how kiting works, all I know is that it may look as if I am.
I know that I could take a cash advance on my card but I lose my intro 0% apr on it and my apr on cash advances is 22%. Not sure I really want to go that route yet. And I know the easiest solution is saving the money but it really is a lot easier to save when I have an actual debt on the line that I HAVE to pay.
Thanks in advance for reading and any advice.
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