 TITLE: How Much Money Should You Keep in Checking and Savings? CONTENT: How Much Cash Should You Keep in Your Checking Account?\n-------------------------------------------------------\nThe amount of cash you keep in your checking account is a personal preference, and it may vary throughout the month and from month to month. Generally speaking, the goal is to maintain a balance that helps you minimize or eliminate bank fees and avoid overdrawing on your account.\n**Mind your minimums.** Your checking account should never drop below your required minimum balance, if you have one. An insufficient balance will likely trigger a fee.\n**Calculate your expenses.** Track your expenses over a few months to determine what your average monthly outflow is.\n**Find your level.** Many experts recommend keeping one to two months' worth of expenses in your checking account as a base. You might want to aim high if any of the following apply to you:\n*   You're a gig worker, rely on tips or have sporadic income.\n*   You don't check your account activity and balance frequently, and don't use account alerts to track transactions.\n*   Your savings account is at a different bank or credit union and funds will take two or three days to transfer.\nOverdraft fees typically range from $25 to $35 per transaction, so having a good cushion in your account can save you money and aggravation. Backup funds can also alleviate anxiety: An unusually large utility bill or small emergency expense is unlikely to cause a cascade of overdrafts. And the likelihood of a missed loan or credit card payment due to insufficient funds is relatively low.\nEven with a few months of expenses in the bank, it's important to check your account regularly to make sure you're maintaining your intended balance. You also want to monitor your account for fraudulent transactions. END