Wealthy Americans are moving cash out of checking and savings accounts. Here’s what they’re doing with it

Moneywise

Sun, December 14, 2025 at 7:45 AM EST

8 min read

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Consumer confidence dropped sharply in November, falling to its lowest point since April, when concern over President Trump’s tariffs was driving economic anxiety (1).

Possibly as a result, Americans have pulled back on spending. A delayed report from the Department of Commerce shows that while consumer spending rose 0.02% from the previous month, sales are sluggish compared to the 0.6% increase recorded in July and August and 1% increase in June (2).

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What are they doing with their money instead? New research from JPMorgan Chase's Institute of Financial Health and Wealth Creation found that after accounting for inflation, savings and checking balances have essentially been stagnant for nearly two years .

When it comes to high-income households, bank balances have even been shrinking, landing at negative 2% in October 2025 (3).

Where did the money go?

The report notes that higher-income households are instead moving cash out of regular bank accounts and into higher-yield options, such as money market funds, brokerage accounts and certificates of deposit (CDs) (3).

With inflation hovering around 3.0% — well above the 2% target — it seems traditional accounts just aren’t cutting it (4).

With incomes barely improving and everyday costs still high, many consumers now have “just enough to spend but not enough to splurge,” which explains why spending is falling.

Where are Americans putting their money?

Rather than spending more, many households are turning to investment-style options with higher returns for their cash. If you're thinking about doing the same, here are some of the most popular alternatives:

High-yield cash accounts

These function like regular savings accounts but offer much higher interest rates. For example, a SoFi checking and savings account can help you build your wealth base through a combination of high-interest rates, zero fees and ease of access.

A SoFi account can provide a base 3.60% APY, but new clients can get a 0.70% boost for up to 6 months for a total APY of 4.30%. That’s over ten times the national deposit savings rate, according to the FDIC’s November report.

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With no account fees and no-fee overdraft coverage, you keep more of your money in your pocket. Plus, SoFi account balances of up to $3 million are insured by the FDIC through program banks.

To help jumpstart your savings, you can get up to $300 when you sign up with SoFi and set up a direct deposit.

For other savings options offering a range of new customer bonus options, check out the Moneywise list of top savings accounts of 2025.

Certificates of deposit (CDs)

With the Fed cutting interest rates recently, many savers are already seeing those yields drop. That makes locked-in returns more valuable than ever — and that’s where a certificate of deposit (CD) shines.

With a CD, you lock in a guaranteed rate upfront, so your earnings stay steady for a set term, even if rates slip further. It’s predictable, reliable growth, which is something you don’t always get with traditional accounts.

Raisin makes that even easier by giving you access to high-yield and no-penalty CDs from top U.S. banks, all with no fees and minimums as low as $1.

Prefer higher returns? Choose a high-yield CD for fixed, dependable earnings. Want flexibility? A no-penalty CD lets you access your money early without the usual withdrawal fees that come with a typical CD.

Whether you’re saving for something soon or building a cushion for the long haul, Raisin gives you a simple way to earn more without worrying that tomorrow’s rate changes will eat into your returns.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

Money market accounts (MMAs)

Offered by banks, MMAs combine savings features with limited check-writing capabilities, FDIC insurance and competitive yields — although often slightly lower than those of HYSAs.

Money market funds (MMFs)

These are investment products, rather than bank accounts. While not FDIC-insured, MMFs invest in low-risk, short-term securities and are considered a stable alternative to cash.

With Public, you can invest in a wide range of MMFs — such as the iShares Government Money Market ETF or the North Capital Treasury MMF. Both types of funds invest in very short-term, high-quality government securities, aiming to provide you with a stable place to park your cash while earning interest.

Public is a self-directed investing platform where you can manage your own portfolio, while benefitting from real-time insights and social features to help you make your investing decisions. As a commission-free platform, you won’t pay per trade on stocks, ETFs, cryptocurrencies, treasuries, and even alternative assets.

Public even offers a high-yield cash account at an industry-leading 3.6% APY, with no fees and no minimum balance required. This can allow you to grow your uninvested cash more effectively over time.

Brokerage accounts

These accounts allow you to invest in stocks, ETFs, and mutual funds. While more volatile, they offer higher long-term growth potential.

Some newbie investors may feel intimated by opening a brokerage account, but there are easy ways to get started — and you can do it with your spare change. A robo-advisor like Acorns automatically invests for you by rounding up the price of each of your purchases on your linked debit or credit cards and putting the difference into a smart investment portfolio of ETFs.

That $4.25 morning coffee? It’s now a 75-cent investment in your future.

Acorns also lets you set up a monthly deposit to supercharge your investing. The best part? If you sign up now with a recurring deposit, you can get a $20 bonus investment.

You can dial up your risk tolerance depending on whether you want to invest aggressively over the short term, or set your sights on your retirement horizon.

Retirement accounts like 401(k)s and IRAs

Although designed for long-term savings, increased contributions to these tax-advantaged accounts suggest that many households are focused on future financial security.

While many accounts of this type are linked to stock performance, some investors are looking for added diversification through gold IRAs. With the help of Thor Metals, you can hold physical gold or gold-related assets within a retirement account, which can combine the tax advantages of an IRA with the protective benefits of investing in gold.

This can make them an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. Keep in mind that gold often works best as one part of a diversified portfolio.

To learn more, you can get a free information guide from Thor Metals that includes details on how to get up to $20,000 in free precious metals on qualifying purchases.

What to consider when choosing your investment types

Chasing higher yields can be a smart move, but always consider your financial goals, risk tolerance and liquidity needs before making an investment. Here are a few factors to keep in mind:

Purpose of the funds

Determine what you're saving for. An emergency, a home or retirement? Use HYSAs or MMAs for short-term or emergency savings, CDs for funds you won’t need for a year or more, and brokerage accounts with stocks or bonds for long-term goals (5+ years).

Risk tolerance

Investing in stocks carries market risk. You could lose value if you’re forced to sell during a downturn. If protecting your principal is your top priority, consider lower-risk options like CDs or MMFs, keeping in mind that MMFs are not FDIC-insured.

Liquidity needs

Some products, like CDs, charge penalties for early withdrawals. If access is important, prioritize liquidity or use multiple CDs with staggered maturity dates.

If you’re a homeowner, another way to easily tap into liquidity is through a Home Equity Line of Credit (HELOC). It’s a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed — similar to a credit card.

AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan upfront. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

Wealthy Americans are moving cash out of checking and savings accounts. Here’s what they’re doing with it