How To Split Your Money Between Savings, CDs and More, According to Banking Experts

Group 1 - The importance of balancing liquidity, safety, and growth in personal finance is emphasized, as many individuals lack the knowledge to effectively distribute funds across banking products [1] - Experts suggest that individuals should strategically allocate their money among checking accounts, high-yield savings accounts, certificates of deposit (CDs), and treasury bills [2][3] Group 2 - It is recommended to maintain a couple of months' worth of budgeted expenses in checking accounts for bill payments, as interest rates are low and excess funds may lose value due to inflation [4] - An emergency fund of three to six months' worth of living expenses should be kept in a high-yield savings account to earn higher interest [5] - A CD ladder is advised for additional savings, with three to six months' worth of living expenses, allowing for periodic access to funds without penalties [6][7] Group 3 - CDs offer slightly higher interest rates than high-yield savings accounts but require careful consideration regarding liquidity needs [7] - Short-term treasury bills are recommended as a safe alternative to CDs, backed by the U.S. government [8]