How much money should you keep in your checking and savings accounts?

When your paycheck arrives, do you just have the entire amount deposited into your checking account or do you divert some into savings?

Meant to hold cash for everyday purchases and regular bills, checking accounts allow you to deposit and withdraw cash quickly. But funds in a savings account can sit and earn interest for emergencies and longer-term goals.

How much should you have in your checking and savings accounts? CNBC Select spoke with Shon Anderson, president and chief wealth officer at Dayton, Ohio-based Anderson Financial Strategies, to find out.

Checking accounts offer quick access to cash, making them ideal for daily expenses.

“Since your checking account is the ‘operating’ account that bills are paid out of, our recommendation is one to two months of expenses,” Anderson said.

Some banks levy monthly service charges and other fees on checking accounts, but most are avoidable with a minimum balance or direct deposit. Capital One 360 Checking is one of our top picks for checking accounts, with no minimum balance requirement and no overdrafts or foreign transaction fees. We also like Chase Total Checking, which includes access to more than 5,000 branches and a generous bonus if you set up direct deposit.

While your checking account is for bill-paying and daily expenditures, a savings account is for more long-term goals, like a vacation or home repairs. It's also where savers keep an emergency fund.

Anderson recommends keeping three to six months of living expenses (rent, food, utilities, car payments) in your savings account. Other experts recommend up to 18 months to protect against an uncertain economy and AI-related job shifts.

However much you decide is a sufficient buffer, Anderson recommends linking your savings and checking accounts, so you can move funds when you need them.

"You can connect your accounts directly, if your bank allows, or through a payment app like Venmo,” he added.

A high-yield savings account can earn 10x as much as a traditional savings account, making it a smart option even when interest rates are lower.

One of our top picks for HYSAs is Marcus by Goldman Sachs High Yield Online Savings. It boasts a competitive yield, no minimum opening deposit or balance requirement and free same-day transfers of up to $100,000 for linked accounts.

The Ally Online Savings Account also skips fees and minimums and account holders can divide the funds into up to 10 custom "buckets" to save for different goals in the same account.

Once you've covered your immediate expenses, your emergency fund and your short- and medium-term savings goals, you probably have enough in deposit accounts. It's time to look at other places where your money can grow more.

Money market accounts

A money market account (MMA) combines the easy cash access of a checking account with the interest-bearing power of a savings account. The EverBank Performance℠ Money Market account, for example, comes with check-writing privileges and an ATM/debit card. There are no overdraft or NSF fees and customers who maintain an average daily balance of at least $5,000 enjoy unlimited reimbursement of out-of-network ATM fees. (Otherwise, EverBank refunds up to $15 per billing cycle.)

CDs

Put money you're confident you won't need to touch for a while in a CD. It will earn a fixed interest rate and there's no temptation to make frivolous purchases. Most banks require $1,000 or less to open a CD.

We recommend Ally Bank's 5-year high-yield CD, which features daily compounding interest and no minimum deposit requirement. Ally also has a variety of other options, including bump-up CDs, which let you increase your interest rate during your term, and no-penalty CDs, which allow you to access cash from your CD before the term ends.

Investments

Investing in the stock market is a smart option for long-term ( 5+ years) goals, such as retirement. It comes with higher risk, but also higher reward: Historically, stock market investments have earned about 10% annually, compared to less than 5% for a high-yield savings account.

If you're a beginner investor, the Vanguard Total Stock Market Index Fund (VTI) lets you be hands-off and has a super-low .03% expense ratio.

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