3 Signs You Have Too Much Money in Your Checking Account

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Your checking account is a convenient place to keep your money. You can make unlimited withdrawals from your checking account and access your money from an ATM. Chances are good this account is where you deposit your paychecks, so the money can be used as needed. Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Having a big checking account balance may seem like a good thing, but in reality, having too much in there could come at a big cost. Here are three key signs you have too much money in your checking account. 1. You have more than a few months of living expenses in your checking accountIf you have more than enough money to cover the bills for around two or three months, this is a pretty good sign you have too much money in your checking account. Checking accounts should be used to store money you use regularly. Since money is most likely being deposited into it on a regular schedule, you don’t need to keep a huge balance. And you usually shouldn’t because checking accounts rarely, if ever, pay interest — even with an account that provides a small return, it’s usually well below what you could earn elsewhere.Keeping tens of thousands of dollars just sitting in your checking account for no reason comes at an opportunity cost since that money isn’t working for you. If you earn no interest at all or if the yields you’re getting are below the rate of inflation, you’re losing purchasing power. 2. You have your emergency fund in your checking accountIf you’re keeping your emergency fund in your checking account, it’s a clear red flag that you have money in this account that doesn’t belong there.Your emergency fund should be used only for true emergencies. It shouldn’t be mixed in with money you’re spending on other things, like everyday expenses. It’s too hard to keep track of what money is for emergencies if it’s mixed with other funds. It’s also more likely you’ll end up just spending the cash since it’s too accessible. If you have your emergency savings in your checking account, move it today. Check out our picks for the best high-yield savings accounts, many of which offer yields well above the national average.3. You have money in checking you’re planning to use for other goalsFinally, if you have money in checking you’re planning to use for other long- or short-term goals, such as saving for a house or a vehicle, or even for retirement, then you need to move it. You should have this money in dedicated accounts to keep track of your progress toward goals and to stop you from spending it.Depending on your timeline, you could put the money into one of the best CDs, which would look up your funds for a period and help you earn a guaranteed return. You could also use a savings account if you need the funds accessible, or a brokerage account to invest in equities and potentially earn much higher returns.If you spot any of these signs that you have too much money in your checking account, fix it today. It’s easy to do, and you can get your finances in better shape by making sure all your hard-earned money is in the best place to work for you. Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Your checking account is a convenient place to keep your money. You can make unlimited withdrawals from your checking account and access your money from an ATM. Chances are good this account is where you deposit your paychecks, so the money can be used as needed.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Having a big checking account balance may seem like a good thing, but in reality, having too much in there could come at a big cost. Here are three key signs you have too much money in your checking account.

1. You have more than a few months of living expenses in your checking account

If you have more than enough money to cover the bills for around two or three months, this is a pretty good sign you have too much money in your checking account.

Checking accounts should be used to store money you use regularly. Since money is most likely being deposited into it on a regular schedule, you don’t need to keep a huge balance. And you usually shouldn’t because checking accounts rarely, if ever, pay interest — even with an account that provides a small return, it’s usually well below what you could earn elsewhere.

Keeping tens of thousands of dollars just sitting in your checking account for no reason comes at an opportunity cost since that money isn’t working for you. If you earn no interest at all or if the yields you’re getting are below the rate of inflation, you’re losing purchasing power.

2. You have your emergency fund in your checking account

If you’re keeping your emergency fund in your checking account, it’s a clear red flag that you have money in this account that doesn’t belong there.

Your emergency fund should be used only for true emergencies. It shouldn’t be mixed in with money you’re spending on other things, like everyday expenses. It’s too hard to keep track of what money is for emergencies if it’s mixed with other funds. It’s also more likely you’ll end up just spending the cash since it’s too accessible.

If you have your emergency savings in your checking account, move it today. Check out our picks for the best high-yield savings accounts, many of which offer yields well above the national average.

3. You have money in checking you’re planning to use for other goals

Finally, if you have money in checking you’re planning to use for other long- or short-term goals, such as saving for a house or a vehicle, or even for retirement, then you need to move it. You should have this money in dedicated accounts to keep track of your progress toward goals and to stop you from spending it.

Depending on your timeline, you could put the money into one of the best CDs, which would look up your funds for a period and help you earn a guaranteed return. You could also use a savings account if you need the funds accessible, or a brokerage account to invest in equities and potentially earn much higher returns.

If you spot any of these signs that you have too much money in your checking account, fix it today. It’s easy to do, and you can get your finances in better shape by making sure all your hard-earned money is in the best place to work for you.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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