Millioniares tend to keep their money in high-yield assets, such as stocks, mutual funds, real estate, bonds, etc. However, they do keep a small portion of cash available in checking accounts — typically less than 1% of total assets. According to a report by Long Angle, an online community for high-net-worth individuals, those with a net worth of $2 million to $5 million keep an average balance of $20,000 in checking, while those with a net worth of $250 million or more have an average checking balance of $90,000.
This indicates the importance of maintaining liquid assets, especially amid economic uncertainty. And a checking account can be a helpful tool for doing so — whether or not you’re a millionaire.
Do millionaires keep money in checking accounts?
Anyone, regardless of net worth, can find value in checking accounts. They typically allow unlimited deposits and withdrawals, check writing, bill pay, and other features to help you manage your money day-to-day.
While millionaires may keep large portions of their wealth in interest-generating deposit accounts and investments, they also typically use a checking account to manage everyday transactions. Millionaires also recognize the importance of having liquid assets available to cover unexpected expenses without needing to sell off investments, borrow money, or pay a penalty for tapping retirement savings early.
The amount of money a millionaire keeps in their checking account is highly personal and depends on preference. However, because checking accounts rarely earn competitive — if any — interest, some millionaires intentionally limit their checking account balance to a very small portion of their total assets.
Regardless of preference, it would be surprising for a millionaire to keep more than $250,000 in a single checking account. That’s because the Federal Deposit Insurance Corp. (FDIC) only insures up to $250,000 in deposits per institution, per account holder.
Checking accounts typically offer minimal or zero interest. Keeping large sums in a checking account creates “cash drag,” where inflation gradually reduces the purchasing power of idle money. Millionaires prefer to keep the vast majority of their wealth working for them in growth-oriented or income-generating assets, such as stocks, real estate, private equity, and high-yield money market or cash sweep accounts.
Beyond their modest checking account balances, millionaires rely on high-yield cash sweep accounts, money market funds, and secondary liquidity options. They also frequently use low-interest credit lines—such as Securities-Backed Lines of Credit (SBLOCs) or home equity lines—allowing them to access instant liquidity for large or unexpected expenses without needing to sell investments or trigger capital gains taxes.
Yes, from a safety perspective. The Federal Deposit Insurance Corporation (FDIC) only insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category. Holding more than $250,000 in a single standard checking account leaves the excess balance uninsured against bank failure. To manage larger cash balances safely, wealthy individuals often spread funds across multiple banks or use Insured Cash Sweep (ICS) services that automatically distribute cash across an FDIC-insured network.
Regardless of net worth, financial experts generally recommend keeping enough in a checking account to cover 1 to 2 months of regular living expenses, plus a small buffer for unexpected daily charges. Any additional liquid savings—such as an emergency fund covering 3 to 6 months of expenses—is better kept in a High-Yield Savings Account (HYSA) or Money Market Account (MMA) where it can earn competitive interest while remaining accessible.
Millionaires hold the bulk of their uninvested cash in brokerage cash management accounts (such as sweep programs at Fidelity, Schwab, or Vanguard), treasury bills (T-bills), money market funds, and private banking high-yield savings products. These vehicles provide near-instant liquidity and competitive yields while consolidating funds within their overall investment portfolio.
Manoj Sharma is a Senior Writer on the banking team at Tax Assistant. He provides information on budgeting, bank accounts, the banking industry, and other related topics. Using original data and methodologies, he helps you identify the best financial institutions, accounts, and products tailored to your needs. Manoj holds a degree in Journalism and Political Science from Syracuse University. All articles are strictly reviewed and fact-checked by our panel of expert Chartered Accountants, including CA Devendra Saini, CA Nikhil Khunteta, and CA Ankit Goyal
