I already have an online savings account with a variable APY. If I were to open another savings account and transfer the money back and forth between the two whenever one account has a higher APY, is that allowed? What is the maximum amount I can transfer without notifying the IRS each time?
As long as you don't exceed any transaction limits imposed by either of the banks or credit unions, there's nothing wrong with moving money around to improve your yield. Just be aware that if you do so using a bank's internet banking service (some such services allow customers to make transfers to accounts at other banks), you could run up against federal regulatory limits on transfers from savings accounts. Ask your bank for details. As for IRS reporting, federal laws and regulations require banks to report transactions in currency exceeding $10,000.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
As long as you don't exceed any transaction limits imposed by either of the banks or credit unions, there's nothing wrong with moving money around to improve your yield. Just be aware that if you do so using a bank's internet banking service (some such services allow customers to make transfers to accounts at other banks), you could run up against federal regulatory limits on transfers from savings accounts. Ask your bank for details. As for IRS reporting, federal laws and regulations require banks to report transactions in currency exceeding $10,000.
