3 reasons to keep your cash in high-yield savings instead of checking

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Money can't grow in a checking account.

• A checking account isn't the place to keep money you want to grow, but a high-yield savings account is.
• In a high-yield savings account, money will earn more interest than it ever could in a checking account. And, you'll be less tempted to spend it.
• Putting your money into multiple high-yield savings accounts can help you to visualize your goals and see your progress easier.
• See Business Insider's picks for the best high-yield savings accounts »

Your checking account isn't the place for your money to grow.

If you're keeping too much money in your checking account, you might find you've been procrastinating on the things you want to accomplish with your money, neglecting your retirement account, or missing out on other opportunities to build wealth.

If there's always too much money in your checking account, it might be time to find a high-yield savings account to store anything extra you're keeping in checking. Here's why:

1. Your money earns more interest

In a high-yield savings account, your money earns far more interest than it would in a checking account. Checking accounts generally don't earn much interest - some don't earn any, and according to the FDIC, those that do earn an average of .06%. Meanwhile, a high-yield savings account can earn anywhere from 1% to 2%, depending on the bank and the account you choose.

That 1% to 2% probably won't make you rich, but that's more than 15 times as much growth as you'd earn in checking, with almost no more effort.

2. You won't be tempted to spend it

With a high-yield savings account, you can keep money out of sight and out of mind. If you want, you can even open your savings account at a separate bank from your checking, to add another step to access it. Leaving money in a checking account can make it seem like it's free to spend with a swipe of your credit card, even when you'd rather save it for something better in the future.

Plus, it can be hard to keep track of goals when you can't see your progress. By transferring money from a checking account into a high-yield savings account, you'll be able to watch your savings balance tick up instead of fluctuate as you pay bills each month, and be more motivated to keep saving.

3. You can open multiple accounts for multiple goals

There's no limit to how many high-yield savings accounts you can have open. Opening several can help keep track of multiple goals.

Or, Ally Bank's high-yield savings accounts have the option to create "buckets," which can help organize money among multiple goals. If you have an emergency fund, a savings account for travel, and one for pet care, you could create three separate buckets with three separate goals to make sure you don't accidentally take from your emergency fund when you meant to finally take that well-earned vacation.

In checking accounts, there's no good way to organize money. A high-yield savings account can help keep your money organized and separated, and eliminate the confusion when it comes time to spend.

• More savings and retirement coverage
• How to retire early
• The best high-yield savings accounts right now
• The banks with the best CD rates
• When to save money in high-yield savings

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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