Super-savers may have more money in the bank than you do — but is that always something to be envious of?

The risks of saving too much

Super-savers are the people who stash all their cash in a savings account, perhaps because they have a low risk tolerance or because they want easy access to funds.

So what’s wrong with that? Some traditional savings accounts have an annual percentage yield (APY) as low as 0.01%.

Meanwhile, some high-yield savings accounts offer an APY of 5% or more, and they may require a large minimum deposit or charge monthly maintenance fees.

The national average deposit yield is 0.45%, according to Federal Reserve data. And, as of July, the rate of inflation sat at 3.0%.

If your savings account has a return that’s lower than the rate of inflation, your money is losing value as it sits there. Plus, there’s an opportunity cost: missing out on higher investment returns.

One sign that you may be saving too much is if you exceed the $250,000 limit set by the Federal Deposit Insurance Corporation (FDIC).

So long as your bank is FDIC-insured, your money is insured up to that amount if your bank collapses. But once you exceed that amount, there’s no guarantee of reimbursement.

So how do you figure out a savings threshold that works for you? A general rule of thumb is to save three to six months’ worth of living expenses in an emergency fund, so you don’t have to rely on your credit card or a personal loan.

If you have a stable job (or live in a dual-income household), then you may only need about three months’ worth of savings. If you’re self-employed or work in the gig industry, then you may want to save more than six months’ worth.

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Consider your alternatives

Once you have your bases covered, then you may want to consider alternatives to a savings account, such as certificates of deposit (CDs), money market accounts (MMAs) and brokerage accounts.

MMAs typically deliver higher yields than standard deposit accounts and come with some checking account features. This could be a good option for someone with a low risk tolerance, since your money is safe but it’s typically keeping up with inflation (and often pays similar yields to top high-yield savings accounts).

CDs pay a fixed interest rate for a specific period of time, so they’re also a safe bet, but if you need to access those funds before the term expires, you’ll have to pay an early withdrawal penalty. So they’re best used to save for short-term goals, such as a wedding or home renovation.

Putting your money in tax-advantaged retirement accounts such as a 401(k) or traditional individual retirement account (IRA) comes with the added benefit of tax savings.

For example, if you earn a high salary, investing your money in a tax-deferred retirement account means you don’t pay taxes on that money until you withdraw it in retirement (when it’s assumed you’ll have a lower income). That reduces your current tax burden in a way that your savings account can’t.

Investing in mutual funds, bonds, stocks and exchange traded funds (ETFs) can also help you achieve higher returns.

While they’re riskier than a savings account, they typically offer higher returns in the long run. The average return of the S&P 500 over time is around 10% (or 6% to 7% when adjusted for inflation).

You can set up an online brokerage account or work with a financial adviser to chart the best path forward.