Banks Won't Tell You This: Why You Shouldn't Keep an Extra $10K in Your Checking Account

Keeping an extra $10,000 sitting in your checking account might make you feel financially secure, but it's likely causing you to miss out on hundreds or even thousands of dollars in interest.

Checking accounts typically offer little to no interest, meaning your money just sits there instead of working for you. A checking account provides you easy access to cash and a place to keep enough money to cover monthly bills and expenses. But keeping any more money than that in a checking account is not a smart move.

Instead of letting your extra cash go to waste, here are better places to park it. You'll earn more while still keeping your money accessible when you need it.

1. High-yield savings account (HYSA)

A high-yield savings account (HYSA) is one of the safest and easiest ways to earn more on your money while keeping it accessible. Unlike checking accounts that earn an average APY of 0.07%, many HYSAs offer 4.00% APY or more -- meaning you could earn more than 50x your checking account interest a year just by moving your money.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.70% Rate info 3.70% annual percentage yield as of April 18, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.70% Rate info 3.70% annual percentage yield as of April 18, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
CIT Platinum Savings Member FDIC. APY 4.10% APY for balances of $5,000 or more Rate info 4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000+ for max APY Open Account for CIT Platinum Savings On CIT's Secure Website. Member FDIC.	4.10% APY for balances of $5,000 or more Rate info 4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY	$100 to open account, $5,000+ for max APY	Open Account for CIT Platinum Savings On CIT's Secure Website.
Barclays Tiered Savings Member FDIC. APY 4.10% Rate info Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%. Min. to earn $0 Open Account for Barclays Tiered Savings On Barclays' Secure Website. Member FDIC.	4.10% Rate info Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.	$0	Open Account for Barclays Tiered Savings On Barclays' Secure Website.

The best high-yield savings accounts are fee-free with easy transfers between accounts. They're the perfect spot to keep emergency savings to cover up to six months of expenses.

Some of these accounts earn more than 50x that of a typical checking account. Explore our list of the best high-yield savings accounts now.

2. Certificate of deposit (CD)

If you don't need your money right away, a certificate of deposit (CD) can offer interest rates on par and sometimes higher than an HYSA. CDs require you to lock in your money for a set period (typically three months to five years), but in return, you get a guaranteed interest rate.

For example, putting $10,000 into a 12-month CD with a 4.00% APY would earn you $400 in interest in just one year. CDs are the perfect spot for money you're saving for a long-term goal and don't need or don't want to be tempted to spend in the short term.

3. Investment account

If you don't need access to your $10,000 for at least three to five years, investing in a brokerage account or IRA could offer higher returns than any bank account. The stock market has historically averaged 10% annual returns, meaning your money has the potential to grow much faster over time.

It's smart to invest in things like:

• Index funds (like S&P 500 ETFs) for diversified, low-risk growth.
• Dividend stocks to earn passive income.
• Growth stocks to hold for retirement.

After making sure you're covered in case of an emergency, growing your retirement nest egg is the next most important thing. The earlier you can get started, the better, so your savings can grow with compound interest.

4. Pay off high-interest debt

If you have high-interest debt, like credit cards with 20%-plus APRs, using your extra cash to pay it down could be the smartest financial move. Instead of earning 4% in a savings account, paying off a 20% credit card balance is like getting a guaranteed 20% return on your money.

Even paying down a portion of a mortgage, car loan, or student loan can save you hundreds (or thousands) of dollars in interest over time.

A checking account is not a good place to save money

Having a checking account is necessary for most, but it's important not to stack cash in it. With a national average interest rate of just 0.07%, you're costing yourself money by letting it sit there. By making even one of these changes, you could be earning 50x more on your savings overnight.