Checking or savings? Split your money in 3 questions
Keep one month of spending in checking to cover bills. Put everything above that in savings, where it earns more. Enter your spending and cash below to see your split and what it could earn in a year.
Your split
- Keep in checking
- $2,000
- Move to savings
- $4,000
Keep one month of spending in checking to cover bills. Move the rest to savings, where it earns more.
Moving that part could earn about $173.20 more in a year than leaving it in a typical checking account. This uses the best savings rate we verified on Nov 1, 6:40 AM ET, so your own rate may differ.
How we work this out
- Checking gets one month of your spending. Students get one and a half months.
- Savings gets the rest of your cash.
- The yearly gain is the savings part times the gap between the best savings rate we verified and what a typical checking account pays. We show no gain when we have no verified rate. Your own bank’s rate will differ.
Common questions
- How much should I keep in checking?
- Keep about one month of spending in checking. That covers rent, bills and card payments between paydays. Put the rest in savings, where it earns more.
- Is it bad to keep all my money in checking?
- It is safe, but it usually earns close to nothing. Cash you will not touch this month can earn more in a savings account at no extra risk.
- What should a student do?
- Pick a checking account with a $0 monthly fee and no minimum balance. Keep a little more than a month of spending in it, because pay and aid can arrive late. Save the rest.
- Can I use more than one account?
- Yes. Many people keep checking at one bank and savings at another. Moving money between them usually takes one to three business days.