An astounding 63% of Americans don't have enough money in the bank to cover an unplanned $500 expense, according to emergency savings startup SecureSave. So if your savings account seems to be overflowing with cash, you might assume you're in a great place.

It's definitely better to have more money in savings than not enough. But if any of these situations apply to you, it's a sign that you may be parking too much cash in savings for your own good.

1. Your emergency fund can cover more than six months of bills

It's important to have money set aside for a rainy day, whether it's medical bills, a car repair, or a period of unemployment. And most financial experts recommend having enough money in emergency savings to cover three to six months of essential bills. But if your emergency fund has more than six months' worth of expenses, it may be that you're keeping too much cash in the bank.

Of course, there are exceptions. If you have a very unique job that would be hard to replace, then you may want to keep more than six months of bills in savings. The same might hold true if you're self-employed with a variable income and no protections like unemployment benefits.

Our Picks for the Best High-Yield Savings Accounts of 2024

American Express® High Yield Savings APY 4.00% Rate info 4.00% annual percentage yield as of November 24, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	APY 4.00% Rate info 4.00% annual percentage yield as of November 24, 2024. Terms apply.	Min. to earn $0
Capital One 360 Performance Savings APY 3.90% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Nov. 21, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	APY 3.90% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Nov. 21, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
Western Alliance Bank High-Yield Savings Premier APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	Min. to earn $500 to open, $0.01 for max APY

But for most people, a six-month emergency fund is sufficient. So if your balance goes beyond that, you may want to move some of your remaining money into a certificate of deposit (CD), where you can lock in a higher interest rate. Click here for a list of the best CD rates today.

2. You have the ability to pay off a costly credit card balance

The longer you let a credit card balance linger, the more interest it might cost you. A $5,000 balance being charged 18% interest will cost you a little over $2,600 in interest if it takes you five years to shed. So if you have enough money in savings to pay off your credit card debt and still have some cash left over for emergencies, then it makes sense to tackle those balances as soon as possible.

Now, you don't want to deplete your emergency fund to pay off credit cards. If you do and another surprise expense pops up, you might have to borrow again -- and this time at a higher interest rate.

But if you have enough money in savings to pay off your credit cards and still cover three months of essential bills, then you should knock out your debt. The amount of interest your credit cards are charging you is probably way more than the interest you're earning from having that money in the bank.

3. You're keeping cash in savings that you don't plan to use for many years

Money you might need for emergencies or near-term goals should be kept in a savings account. But if you're keeping cash in your savings that you don't expect to use for about seven years or more, then investing it is a better bet.

Over the past 50 years, the S&P 500 has rewarded investors with an average annual 10% return, which accounts for years when stocks did well and years when they did the opposite. By contrast, a savings account might pay you an APY of 4% now, but that rate isn't likely to last much longer.

But even if it does, say you have an extra $10,000 in savings. At 4% a year, in 30 years, it'll be worth about $32,400. But if you invest it in a stock portfolio that pays you 10% a year, in 30 years, your $10,000 will be worth about $174,500 instead.

So think carefully about what you plan to use your money for. And if you have a long window before you'll need it, open a brokerage account and start earning more on your money.

Believe it or not, there is such a thing as having too much money in your savings account. If any of the above signs apply to you, it's time to make changes so you don't lose out financially.