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

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KEY POINTS

  • Keeping some extra money in your checking account is a good idea, but if you keep it all there, you miss out on the chance to earn interest.
  • Your finances could benefit from moving some excess money from your primary bank account to a separate savings account.

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.

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APY
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn
$0
APY
4.35%
Min. to earn
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APY
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of May 29, 2024
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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.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

Two of our top online savings account picks:

Rates as of May 30, 2024 Ratings Methodology
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SoFi Checking and Savings Barclays Online Savings
Member FDIC. Member FDIC.
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4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
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= Poor

APY: up to 4.60%

APY: 4.35%

Min. to earn APY: $0

Min. to earn APY: $0

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