10/20/2024

Don't Store Your Money in Payment Apps

Digital payment apps lack the same protections as bank accounts

Connor Tomasko grew up wary of credit cards. As she taught herself more about managing money, she realized many people also have bad habits when it comes to payment apps.

Tomasko, 31, a Chicago-based freelance software consultant, understands why people appreciate the ease of the apps, which typically only require you to know someone’s username in order to send money. But she realized that keeping money in the apps could be risky and means losing out on the interest from a high yield savings account. She now immediately transfers any payments out of the apps and encourages friends to do the same.

“I’m definitely the one that is always harping about high yield savings accounts,” Tomasko said. “But if you’re in an industry dealing with a lot of cash — bartending, say — sometimes, you’re just worried about finding a place to deposit it. It’s not always a fun thing [about which] to talk.”

Please select this link to read the complete article from The Associated Press.