Keep At Least This Much Amount In Your Checking A/C!

Start Reading

Your checking account can accommodate all of your funds, right? Technically, yes. However, it may not be the best choice for storing large amounts of cash.

Your objectives and circumstances will decide the optimal checking account balance. You should have sufficient funds for the following two months.

How much to keep?

If you have enough money in your bank account to cover your critical expenses for the next month or two, you have sufficient funds.

Suppose your monthly costs are $2,500. Add a cushion of $500 (20% of $2,500) to bring the total to $3,000. Two months of expenses will be covered by $6,000.

What's too much?

If the amount of money in your bank account can cover the cost of needs for at least five months, you almost certainly have too much money.

What if not enough amount?

Insufficient funds in your account may incur bank fees. If your account balance is low and you overdraw, an overdraft fee may be assessed.

What if too much amount?

It is also a terrible idea to hold a large amount of cash in your checking account, as the majority of these accounts do not pay interest on cash balances.

Daily checking accounts are practical. They are excellent for both deposits and withdrawals. However, savings accounts are ideal for money storage.

Want More Interesting Stories?

Click Here