How much cash should you keep in savings?
There is no magic number that works for everyone. The right amount depends on your bills, how steady your income is, what big expenses may be coming, and how much cushion helps you sleep at night.
Cover the money you already know you will need
Bills, taxes, planned repairs, tuition, travel, or a purchase coming up soon should usually stay easy to reach. Do not lock up money you already expect to spend.
Build in room for surprises
Your emergency reserve should reflect your own situation. A household with one income, high deductibles, an older car, or unpredictable expenses may want more breathing room than someone with very steady income and low fixed costs.
Then decide what the extra cash can do
Once the money you need to keep liquid is covered, compare high-yield savings and CDs for the rest. At that point, access, rate, fees, and how long you can leave the money alone become the bigger questions.