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Originally Posted by Lubeboy
Is it bad to have too much money in a savings account? Besides investing, where else is a good place to keep money for emergencies and occasional splurges etc..?
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You shouldn't have very much if any money in savings if you have ANY renewable debt (credit cards mainly)...just a couple pay checks worth at most to ease a job transition.
If you're past that point, the savings account should, like Will said, keep the emergency money you think you might need for the next 3ish months (short term savings) in a 'what if' scenario...or, if you're saving to buy something.
Anything you plan on keeping more than a year should be invested somewhere that the return at least has a chance at beating inflation.