Have $50K in Savings? Here's What to Do With It

Having tens of thousands in the bank is never a bad thing. But if you've built up your savings account to say, $50,000, it might be time to ask: Is some of that money better off elsewhere?

Once you've established an emergency fund -- enough to cover three to six months' worth of expenses -- keeping additional cash in your savings account means you're missing out on ways to grow your money.

Here's where to put your excess savings instead.

Make more by moving your money

Here are a few great ways to earn more on your extra cash:

• Certificates of deposit (CDs): With CDs, you'll lock up your money for a given term -- months or even years -- and get a fixed APY in return. With interest rates on the decline, now's the perfect time to lock in a high CD rate while you still can.
• Individual retirement accounts (IRAs): IRAs let you save for retirement with fantastic tax advantages -- they're exempt from capital gains and dividends taxes, which can mean long-term savings in the five or six figures. You can use them to purchase stocks, bonds, mutual funds, and more.
• Brokerage accounts: Just like IRAs, brokerage accounts let you invest in stocks, bonds, mutual funds, and more. They don't offer the same tax breaks, but anybody can open one and invest as much as they want. It's a great place to invest money that you don't need in the short term.

Brokerages are one of the best ways to grow your money in the long run. And by investing in index funds, like one that tracks the S&P 500, you can safely assume that your money will grow steadily over time -- at a much higher rate than your savings account.

Ready to start investing? Open one of our favorite brokerage accounts today to get started.

When to hold on to your cash

There are a few good reasons to hold onto lots of cash. If you're saving up for a big purchase, for example, or preparing for something like a medical expense, keeping more in your account makes sense.

Beyond that, though, holding $50,000 or more in a standard savings account is probably a missed opportunity.

For the cash you do want immediate access to, a high-yield savings account (HYSA) is your best option. Right now, the best HYSAs are offering APYs of 3.80% or higher, making them the perfect place to stash short-term savings.

Here's what I recommend keeping in your HYSA:

• Emergency fund: Three to six months' worth of expenses.
• Short-term savings: Money for things like vacations and large purchases
• Extra cash: Any additional money you don't need in your checking account

I don't recommend using it for long-term investment -- for that, IRAs and brokerages are a much better fit. Otherwise, though, HYSAs are a great place for your cash.

Want to earn more on your savings today? See our full list of the best high-yield savings accounts available now.