How Much Money Should You Keep in a Checking Account?

For most people, managing a checking account feels like Money 101. But there’s strategy involved—especially when it comes to how much you keep in your account and which type of checking account you choose. Making smarter moves with your everyday money can help you avoid fees, earn rewards and even grow your balance faster.

According to the Federal Reserve’s latest Survey of Consumer Finances, the average U.S. household checking account balance is $16,891. But the median is just $2,800—a more realistic snapshot of how much cash others are keeping in their accounts. The gap shows how a few high earners can skew the average, and why it’s important to know what balance actually works for your life.

How Much Money Should You Keep in Checking?

A good rule of thumb: Keep enough in your checking account to cover your monthly expenses, plus a cushion.

Here’s a simple formula to work with:

• Monthly spending: Add up your rent or mortgage, bills, groceries, transportation and subscriptions.
• Cushion: Add 30% more to avoid overdrafts or surprise charges.

So if you spend $2,500 a month, aim to keep at least $3,250 in checking.

Why not keep more? Because most standard checking accounts don’t earn interest—and any extra money is better off in a high-yield savings account or invested.

But what if your checking account does earn interest or rewards? That changes the game.

What to Look for in a Checking Account

Today’s best checking accounts go beyond basic banking. Look for these features:

• No or low monthly fees
• No minimum balance requirements (or low thresholds)
• ATM fee reimbursement
• Mobile and online access
• Extra perks like cashback or interest earnings

If your current checking account doesn’t offer any of these, it might be time to switch.

Two Smarter Checking Options

OMB Bank offers two options that stand out—especially if you're looking to do more with your money without jumping through hoops.

1. High Interest Checking

OMB Bank’s High Interest Checking lets you earn more on your everyday balance. Meet a few easy monthly requirements—12 debit card purchases and one direct deposit or ACH—and you’ll earn 2.01% annual percentage yield on balances up to $25,000. Higher balances earn 0.10% APY, with a blended rate between 0.48% and 2.01% APY, depending on your total.

Interest compounds and credits monthly, and you’ll also get up to $15 per month in nationwide ATM fee refunds when you qualify. There’s no service fee either, but enrolling in eStatements avoids a $4 paper statement fee. The minimum to open is also just $25.

It’s a solid pick for anyone who keeps a healthy balance and wants it to grow without locking it up in savings.

2. Rewards Checking

If you want perks for everyday spending, OMB Bank’s Rewards Checking gives you 5% cashback on debit card purchases—up to $10 per month—when you meet two simple qualifications: 12 posted debit card purchases and one direct deposit or ACH per month.

Meet those, and you’ll also get up to $15 per month in ATM fee refunds nationwide. There’s no monthly service charge and no minimum balance required, but to avoid a $4 paper statement fee be sure to enroll in free eStatements.

It’s a great option for debit-first spenders who want flexible access, smart rewards and no hidden strings.

Here’s the Smart Move

Your checking account shouldn’t just be a holding tank for your paycheck. With the right account, you can earn interest, get rewards and streamline your daily finances—all without sacrificing access or flexibility.

Start by reviewing how much you really need to keep in checking, then find an account that works harder for you. OMB Bank’s high interest and rewards checking options offer two practical ways to grow your money and make everyday banking more rewarding.

Want to see how much you could be earning (or saving)? Compare your current account to these two OMB options and decide what works best for your financial style.

OMB and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decision.