How Much Should You Keep in Your Checking Account in 2025? Experts Weigh In

Checking accounts are where we keep our money for everyday things like paying bills and buying things online and at the ATM.

But in 2025, when interest rates are going up and banks are adding new features, a lot of people in the US are wondering how much cash they should really have in their checking account. There’s more to the answer than just “as much as possible.”

How to get the most out of your bank account

Overdraft fees can happen if your balance is too low, but better returns can be found elsewhere if your balance is too high.

Checking accounts are made for easy, frequent access, while savings accounts are meant to help your money grow.

Because of this, they don’t charge much or any interest and might not have the same benefits as credit cards.

If you keep too much cash in your bank account, you could be a victim of fraud, and you’re probably missing out on earnings you could be making in high-yield savings or retirement accounts.

Where is the sweet spot?

Experts say that you should keep enough money in your checking account to cover your living costs for one to two months, plus an extra 30% to cover overdrafts and help you meet the minimum balance standards that can keep you from having to pay maintenance fees.

This lets you take a financial breath without leaving large amounts of money sitting around.

Still, the right amount depends on how you live.

If you don’t keep very close track of your money, one month’s worth of bills may give you peace of mind.

Some people might be fine with keeping just enough to pay their bills for a week or two.

Financial advisor Gregory Guenther says that your checking account balance should make you feel less stressed, not more stressed.

Your amount may be too low if you’re always worried about making payments.

It might be too high if you’re passing up better chances to grow your savings.

Once you know how much money you should have in your bank account, put any extra money into a high-yield savings account.

A lot of online banks offer returns that are higher than 4% per year, which is a lot more than the national average.

Once you have saved enough for three to six months of emergencies, you might want to put any extra money into a retirement account like a 401(k) or IRA.

In short, your checking account should hold enough cash to cover your daily expenses without becoming a place to store cash that you don’t need.

You can escape expensive fees, stay safe, and make your money work harder for you if you find the right balance.

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