Where should you keep money that goes above and beyond your monthly expenses? How much should you keep in your checking and savings accounts? About.com has the answers to these money questions.
Checking accounts don't give consumers very high interest on their money, so it's best to keep just what you need for expenses in your account and keep everything else in savings, transferring when necessary.
Another reason to not keep too much money in your checking account is that thieves can hack your account and steal money. To protect yourself, use your credit card for most purchases, only use ATM's inside your bank, and set text alerts for your account balances on your phone so you can immediately be notified of fraudulent activity.
Savings accounts don't have the same rate of return they once did, so only keep six to nine months' worth of expenses in a savings account for emergencies. Expenses include rent or mortgage payments, utilities, phone bills, transportation costs and money for groceries.
Once you have an emergency fund, start putting your money into investments. A financial professional can help you with this and guide you towards the proper investment vehicles for your situation.