Have Lots of Money in Your Checking Account? Here Are 5 Better Places to Keep Your Cash

Keeping thousands in your checking account might feel like a smart move -- but the truth is, it could actually be costing you money.

That's because most checking accounts offer next to nothing in interest. I'm talking 0.01% APY or lower. For money you want immediate access to, a checking account is fine -- for everything else, you can do better.

Here are five places to put your cash that can earn much more than your checking account.

1. Credit card debt

Paying off existing credit card debt should be one of your biggest financial priorities if it isn't already. That's because the average credit card interest rate is over 20%, which means paying it off is akin to earning a guaranteed 20% return.

A top balance transfer card can help you speed things up, too, letting you move your existing balance and avoid interest for months on end. That means you'll have plenty of time to pay it off debt without racking up even more interest.

Want to save on interest now? Check out our list of the best balance transfer cards available today.

2. A high-yield savings account

Once your credit card debt is gone, your next step should be to firm up your emergency fund -- usually three to six months' worth of expenses. And if you're still using a traditional bank, there's a smarter place to put that money, too: a top high-yield savings account (HYSA) from an online bank.

Right now, the best HYSAs are offering APYs of 3.30% or higher, which means a $10,000 balance could earn you $330 a year just for moving your cash.

Want to grow your emergency fund faster? Open one of our favorite high-yield savings accounts today.

3. Certificates of deposit (CDs)

CDs are a banking product that lets you lock in a fixed interest rate for a set period of time -- usually between a few months to several years. Oftentimes, they offer APYs that are competitive with HYSAs -- and unlike HSYAs, CD rates are locked in for the duration of your term.

That makes a CD the perfect place for medium-term savings you don't need access to right away.

4. Individual retirement accounts (IRAs)

IRAs are tax-advantaged accounts designed to help you save for retirement. You can use them to invest in stocks, bonds, mutual funds, and more, although they have yearly contribution limits.

There are some limits to how you can withdraw money -- you'll probably want to wait until at least age 59 1/2 to do so -- but if comfortable retirement is a goal of yours, an IRA is a smart first step.

5. Brokerage accounts

Finally, brokerage accounts come with the same investment options as IRAs, only anyone can open one and invest as much as they want. You won't get the tax advantages of IRAs, but they're great for money you might want to access before retirement.

Historically speaking, the stock market is one of the best places to put your money. I recommend starting with an index fund that tracks hundreds of stocks for steady, solid growth.

Want to start investing for your future? Open one of our favorite brokerage accounts in just minutes.