Just one note on King 's suggestions. You can do one or the other, not both. But yes, savings accounts should be on budget accounts. You assign the money to whatever category suits your needs. Account balances and category balances are not inherently linked. I have an Income Replacement category that has about 6 months of expenses. I have no idea which account it "lives" in because it does not matter. I spend based on category balances not account balances. Read this old blog post: https://www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/
Stealing From the Future fix is an improvement but is incomplete....
3 yrs ago
Reported - view
And just to add to what King and jenmas wrote, which is absolutely correct, if you really have no use for it, why is it sitting in a bank account? Put the money to work for you for the long term. If you have debt at a higher rate than the savings account, pay it off. If you aren't maxing out tax advantaged accounts, do that. If you are maxing, invest in tax efficient investments aimed at long-term growth of your money.
Don't just put money in a savings account because you don't know what else to do with it.
So to answer the OP's question, I send money I don't need in my budget to my brokerage account at Vanguard and invest in Vanguard Total Stock Market Index Fund (VTSAX) and Vanguard Total International Stock Market Index Fund (VTIAX).
To piggy back on nolesrule - let's clarify what is meant by "don't need". If it is my Income Replacement fund, I do need it. I need it to be liquid so that if I get laid off, or decide I just can't take it anymore (I like my current job!), or heaven forbid fired, the money is right there ready and waiting for me to continue to pay mortgage and utilities and pick up COBRA or marketplace health insurance payments. I can't risk it being tied up in an investment that may tank at the exact moment I'm out of a job and need it. That's why it stays on budget, in it's own category, distributed across my various checking, savings, and CD accounts.