Here’s Why Your Checking Account Should Contain as Little Money as Possible
One bank I’ve been impressed with lately is LendingClub, which offers an impressive 4.20% APY with $250+ in monthly deposits. Find out more below and click to open an account today.
2025 Award Winner
LendingClub LevelUp Savings
Member FDIC.
APY
Rate info
LevelUp Rate of 4.20% APY applied to full balance with $250+ in deposits in Evaluation Period. Otherwise, accounts earn Standard Rate of 3.20% APY. LevelUp Rate applies for first two statement cycles. Rates variable & subject to change at any time. See terms: https://www.lendingclub.com/legal/deposits/levelup-savings-t-and-cs
Min. To Earn APY
$0 to open, $250 cumulative monthly deposits for max APY
- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
3. You’re skipping the stock market’s long game
Too many Americans treat their checking account as the “default” place to save. When in reality that money would be way better off funneled into long-term investments.
The S&P 500 has averaged about 10% annual returns over the long haul. If your “extra” cash is just sitting in a checking account for years on end, it’s missing the party.
About nine years ago, I started throwing ~$500 a month into a Roth IRA account — that balance is now $111,732. Even small amounts redirected into an index fund can snowball into something life-changing over time. You can’t grow wealth in a checking account.
4. More money, more fraud risk
If a scammer ever gets into your checking account, a giant balance just puts a bigger target on your back. Yes, banks offer fraud protection, but getting your money back can take weeks. That’s stress you don’t need when bills are due.
Keeping a lean checking balance means less exposure. The rest of your money is safer in accounts with stronger protections (and higher earnings).
Checking is a tool, not a storage unit
Checking accounts are built for spending, not for stashing savings or growing wealth.
The sweet spot is keeping just enough for bills, groceries, and short-term stuff.
Everything else should be shoved into a higher paying HYSA, CDs, or long-term investments — places where your money actually multiplies. That’s what I’ve done for years now, and honestly, I wish I’d started sooner.
If you’re looking for a spot to stash your extra cash, check out our list of the best high-yield savings accounts. These banks pay way more than the big guys, and that little move could earn you hundreds (or thousands) in extra interest each year.