This One Move Helped Me Boost My Savings and Earn More Interest

You may not need to maintain as high of a checking account balance as you think.

Many of us have multiple bank accounts. But once we set up new accounts and get on with our busy lives, it can be easy to forget to keep an eye on our bank account balance. That may result in you having too much cash in your checking account. Here's what you may want to do to earn more interest and boost your savings.

My continued quest to improve my financial habits

I'm still working to improve my personal financial habits. Even though I'm financially comfortable at this time, that wasn't always the case. In the past, money was tight, and I lived more frugally. Because of my prior financial experiences, I continue to repeat old financial habits that no longer apply to my current situation -- and some of those habits aren't helpful to me.

One behavior that has taken a lot of work to break is not stashing all my cash in my checking account. I kept as much money as possible in my primary bank account in past years because I didn't have much extra to work with, and every dollar had a purpose.

Now, years later, I tend to keep more money in my primary checking account than necessary -- but some of that money could be earning interest in my savings account. For some reason, I cling to the idea that having more money in my checking account will bring me extra security.

Recently, high-yield savings account interest rates are continuing to climb. That means, as bank customers, we can earn more interest. Keeping extra money in our savings accounts can be beneficial. For this reason, I finally went ahead and moved excess cash to my savings fund.

This hasn't been an easy habit for me to break, and I'm guessing I may need to continue to remind myself to review my bank account balance regularly. But I'm committed to my quest to break financial habits that no longer serve me or my finances.

The benefits of putting more money in your savings account

If you tend to keep too much money in your checking account, you may want to consider moving some of it into your savings account. By doing so, you can benefit in a few ways:

Earn more interest: Keeping more money in your savings account can help you earn more interest. This is like free money, so don't miss out on the opportunity to boost your earnings.

Reach your savings goals faster: By putting more money into your savings account, you'll be closer to reaching your savings goals. Whether you're saving for an emergency or a future pricey purchase that you plan to make -- your goals are important.

Stay motivated: Moving excess money from your checking account to your savings account can also help to motivate you. As your savings account balance grows, you may feel more excited about your financial future and more likely to stay on track with your goals.

If you don't yet have a savings account, now could be a good time to open one. Review our list of best savings accounts to find the right account for your needs.

Review your bank account balance and make adjustments

With the end of the year quickly approaching, now is an excellent time to review your bank account balance and make any necessary adjustments.

Yes, it's a good idea to keep some extra money in your primary bank account to have a buffer for unexpected bills. But don't feel tempted to leave every dollar you have there. By altering your financial habits, you could earn more interest and boost your savings.