Is This The Biggest Secret in Banking? Here’s Why You Probably Have Too Much Money in Your Checking Account

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If you’re like most people, you probably don’t think twice about how much money is sitting in your checking account. It’s safe, easy to access, and gives you peace of mind, right? But here’s something your bank won’t tell you: Keeping too much money in your checking account is costing 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. I used to make the same mistake. I liked seeing a big cushion in my checking account — it made me feel financially secure. But then I realized I was missing out on hundreds of dollars in extra interest each year.If you’re sitting on more cash than you actually need for bills and everyday spending, it’s time to make a change.How much is too much in checking?Here’s a simple rule that helped me: Keep one to two months’ worth of expenses in your checking account. Anything beyond that you need to move somewhere it can actually grow.Here’s why:Your money isn’t earning much. The average checking account offers 0.07% APY or less.Inflation is eating away at your cash. With rising prices, the money in your checking account loses value over time.High-yield savings accounts (HYSAs) pay far more. Many offer 4.00% APY or higher, meaning your money could be earning 50 to 60 times more in an HYSA than a checking account.Start earning more money on your extra cash today. Check out our list of the best high-yield savings accounts.So, where should you put your extra cash?I get it — moving money around can feel like a hassle. But trust me, it’s worth it. Here’s where I put my extra funds:1. High-yield savings account (HYSA)This was a game-changer for me. With an HYSA, my savings started earning 50 to 60 times more than what my checking account paid. And the best part is that I could still access my money anytime I needed.2. Investments for long-term growthOnce I had my emergency fund in place, I started putting extra cash into stocks and ETFs. Historically, the S&P 500 has returned an average of about 10% annually. With some patience, the stock market is still the best place to save for things like retirement.3. Paying down debtIf you have credit card debt, extra cash in checking is wasted. I used some of my excess to knock out high-interest debt, and it saved me way more than I’d ever earn in a savings account.Take action: Move your money and earn moreI wish I had made the switch sooner. If you have extra money just sitting in checking, it’s time to move it to a high-yield savings account where it can actually grow. Many online banks make the process easy with high APYs, no fees, and quick transfers.Compare the best high-yield savings accounts today and find one that fits your needs. Trust me, once you start seeing those higher interest earnings roll in, you’ll wonder why you didn’t do this sooner.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”:”

If you’re like most people, you probably don’t think twice about how much money is sitting in your checking account. It’s safe, easy to access, and gives you peace of mind, right? But here’s something your bank won’t tell you: Keeping too much money in your checking account is costing 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.

I used to make the same mistake. I liked seeing a big cushion in my checking account — it made me feel financially secure. But then I realized I was missing out on hundreds of dollars in extra interest each year.

If you’re sitting on more cash than you actually need for bills and everyday spending, it’s time to make a change.

How much is too much in checking?

Here’s a simple rule that helped me: Keep one to two months’ worth of expenses in your checking account. Anything beyond that you need to move somewhere it can actually grow.

Here’s why:

• Your money isn’t earning much. The average checking account offers 0.07% APY or less.
• Inflation is eating away at your cash. With rising prices, the money in your checking account loses value over time.

High-yield savings accounts (HYSAs) pay far more. Many offer 4.00% APY or higher, meaning your money could be earning 50 to 60 times more in an HYSA than a checking account.

So, where should you put your extra cash?

I get it — moving money around can feel like a hassle. But trust me, it’s worth it. Here’s where I put my extra funds:

1. High-yield savings account (HYSA)

This was a game-changer for me. With an HYSA, my savings started earning 50 to 60 times more than what my checking account paid. And the best part is that I could still access my money anytime I needed.

2. Investments for long-term growth

Once I had my emergency fund in place, I started putting extra cash into stocks and ETFs. Historically, the S&P 500 has returned an average of about 10% annually. With some patience, the stock market is still the best place to save for things like retirement.

3. Paying down debt

If you have credit card debt, extra cash in checking is wasted. I used some of my excess to knock out high-interest debt, and it saved me way more than I’d ever earn in a savings account.

Take action: Move your money and earn more

I wish I had made the switch sooner. If you have extra money just sitting in checking, it’s time to move it to a high-yield savings account where it can actually grow. Many online banks make the process easy with high APYs, no fees, and quick transfers.

Compare the best high-yield savings accounts today and find one that fits your needs. Trust me, once you start seeing those higher interest earnings roll in, you’ll wonder why you didn’t do this sooner.

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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