will vary based on your income, expenses and other factors. For instance, $10,000 may be enough for a single person with minimal expenses and no debt. A married couple with children, a mortgage and multiple car payments may want to save more than $10,000. How Much To Keep in Savings vs. Checking Accounts It’s important to strike the right balance between your checking and savings accounts. Typically, you should only have about one to two months’ worth of expenses in your checking account. “A checking account should include enough to cover your next month’s expenses, and the remainder of your emergency fund should be in savings,” said Justin Haywood, president and co-founder of Haywood Wealth Management. “Checking accounts typically have very low interest rates, so you don’t want your entire emergency fund there.” In addition to having a savings account dedicated to emergency savings, you may want to consider opening different savings accounts for different financial goals. Besides high-yield savings accounts, other savings account options include money market accounts or certificates of deposit (CDs). Money market accounts are usually better for short-term goals or emergency funds. They typically have higher interest rates than checking accounts but comparable interest rates to high-yield savings accounts. They typically provide a debit card and a checkbook, but they may have minimum balance requirements and withdrawal limits. CDs can be better suited for longer-term goals, such as saving for a wedding or a home. This is because CDs are less accessible than savings accounts since they lock in your money for a certain time period. If you try to withdraw your deposit before the CD term is up, you’ll usually pay an early withdrawal fee. Still, the best CD rates tend to be slightly higher than high-yield savings accounts and money market accounts. Is $100,000 Too Much in a Savings Account? For many people, $100,000 may be too much to keep in a savings account. Your money will have a greater opportunity to grow in long-term investment accounts. “Once you have a solid emergency fund, start directing additional savings toward long-term investments such as 401(k)s, IRAs and taxable investment accounts,” Haywood said. Maximizing Your Savings: Tips and Strategies Becoming a consistent saver doesn’t have to be intimidating. Follow these simple steps to grow your safety net with time. Budget To Save It’s easier to save when it’s intentional. Track your spending to know exactly how much you can put in your savings account each month. Earn Interest Make sure your short-term savings is in an account that earns interest, such as a high-yield savings account or a money market account. Save Automatically Prioritize saving beyond emergencies by funding long-term investments with higher return potential. “Save before you spend,” Haywood said. “Set up automatic contributions to your 401(k), IRA, taxable accounts and savings accounts so you’re saving before you even see it.” Review Regularly Check your progress regularly, and don’t be afraid to make adjustments as you earn more money or experience other life changes. You may want to consider speaking with a financial planner who can help you choose the best saving strategies based on your personal finances and goals. FAQ: About Savings Accounts How much does the average person keep in savings? According to the Federal Reserve’s Survey of Consumer Finances, 1989 – 2022 report, the typical American family has an average balance of $62,410 across transaction accounts, as of 2022. However, the median balance is $8,000, which is likely a more accurate representation of the average savings account balance. Am I losing money by keeping it in a savings account? You may be losing money if you keep it in a savings account with a low interest rate, thereby missing out on higher interest earnings. A high-yield savings account or a money market account can be a great place to keep money you need in the near term. But your cash could earn more interest if you put it in long-term investments. Balance your short-term and longer-term savings goals when deciding where to keep your money. What is considered rich in savings? According to Charles Schwab’s Modern Wealth Survey for 2023, Americans say it takes an average net worth of $2.2 million to be considered rich. Notably, 48% of Americans surveyed feel wealthy with an average net worth of $560,000. Do rich people keep their money in savings accounts? People with a high net worth may have their cash tied up in several different assets, including savings accounts, retirement accounts, real estate, stocks, funds and private equity. The best places to keep your money depend on your financial goals, how soon you’ll need the cash and your risk tolerance, among several other factors. *Data accurate at time of publication