Experts Say This Is Exactly How Much Cash to Keep in Your Checking Account in 2025

Let’s be honest—figuring out how much money to keep in your checking account can feel a little confusing. You don’t want to keep too little and get hit with overdraft fees, but you also don’t want to let your money just sit there doing nothing.

So, how much is just right?

Here’s what the pros recommend—and what actually makes sense for everyday life.

The Sweet Spot: Enough for 1–2 Months of Expenses

The general rule? Keep enough in your checking account to cover one to two months of your regular bills and spending. That includes rent or your mortgage, groceries, transportation, phone bill, subscriptions—whatever you need to get through a normal month without stressing.

So if you usually spend around ₹60,000 a month, then you should aim to keep somewhere between ₹60,000 and ₹1,20,000 in your checking account.

That way, you’re covered for everyday stuff and unexpected things like your electricity bill coming in higher than usual—or a friend suddenly asking you to chip in for a group birthday gift.

Add a Little Cushion If That Helps You Sleep Better

Some financial folks recommend going a bit beyond that and keeping an extra 30% on top—just to be safe. So in that same ₹60,000 example, you’d aim to keep ₹78,000 or so. Think of it like a soft landing if life throws you a curveball: your dog needs a vet visit, your car battery dies, or you impulse-buy a last-minute flight.

Having that little buffer just makes things feel less tight, you know?

Don’t Let Too Much Money Sit There Doing Nothing

Here’s the part most people forget: checking accounts don’t usually earn interest. So if you’re parking a lot of money there, it’s not really helping you grow your savings. It’s just… sitting. Which means you’re kind of missing out.

Once you’ve got enough in there to comfortably cover your needs, consider moving the rest somewhere it can actually do something.

So, Where Should You Put the Extra?

A good option? High-yield savings accounts. These pay way more interest than regular checking accounts, and your money is still easy to access if you need it.

You could even set it up so anything above your “comfort zone” amount in checking automatically moves to savings every month. Set it and forget it.

That way, your money’s still available—but it’s not just sitting around being lazy.

To Sum It Up (Real Simple)

• Try to keep one to two months’ worth of your usual expenses in checking.

• Add a bit more if it helps you feel more relaxed about unexpected costs.

• Don’t leave big chunks of cash sitting in checking long-term.

• Use a savings account to grow the extra money while keeping it close by.

At the end of the day, your checking account should be like a well-stocked fridge: it’s got what you need for now, a little extra just in case, but you’re not trying to store everything in there forever.