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Consumer confidence fell sharply in November, reaching its lowest level since April, when concerns about President Trump’s tariffs heightened economic anxiety(1).
Perhaps as a result, Americans have cut back on spending. A delayed report from the U.S. Department of Commerce showed that although consumer spending increased by 0.02% month-on-month, sales performance was weak compared with the 0.6% increase in July and August and the 1% increase in June (2).
What do they do with the money? New research from J.P. Morgan’s Institute for Financial Health and Wealth Creation finds that, adjusted for inflation, savings and checking balances have essentially stagnated for nearly two years.
For high-income households, bank balances have even been shrinking, falling to minus 2% in October 2025 (3).
Reports indicate that higher-income households are moving cash out of regular bank accounts and into higher-yielding 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 – traditional accounts don’t seem to be cutting it (4).
With incomes showing little improvement and daily costs remaining high, many consumers now have “just enough to spend, but not enough to splurge,” explaining the decline in spending.
Instead of increasing spending, many households are turning to investment-style options that offer higher returns on cash. If you’re considering doing this, here are some of the most popular alternatives:
High Yield Cash Account
These accounts function similarly to regular savings accounts, but with much higher interest rates. For example, SoFi checking and savings accounts can help you build a wealth foundation with high interest rates, zero fees, and convenience.
The SoFi account offers a base APR of 3.60%, but new customers can receive a 0.70% boost for up to 6 months, for a total APR of 4.30%. That’s more than ten times the national deposit savings rate, according to the FDIC’s November report.
With no account fees and free overdraft protection, you can keep more money in your pocket. In addition, the FDIC provides insurance through program banks for SoFi account balances up to $3 million.
To help jump-start your savings, you can get up to $300 when you sign up for SoFi and set up direct deposit.
For other savings options that offer a range of new customer bonus options, check out Moneywise’s 2025 list of top savings accounts.
Certificate of Deposit (CD)
With the Federal Reserve’s recent interest rate cuts, many savers have seen yields fall. This makes locking in returns more valuable than ever – and this is where certificates of deposit (CDs) shine.
With term deposits, you lock in a guaranteed interest rate upfront, so your income remains stable for a set period, even if rates fall further. This is predictable, reliable growth that you just can’t get with traditional accounts.
Raisin makes it easier for you to obtain high-yield, no-penalty CDs from top U.S. banks with no fees and minimum amounts as low as $1.
Like higher returns? Choose high-yield CDs for fixed, reliable income. Want flexibility? A penalty-free CD lets you Get early access to your funds There are no common withdrawal fees that come with typical CDs.
Whether you’re saving for the short term or building a cushion for long-term savings, Raisin gives you a simple way to earn more without having to worry about tomorrow’s interest rate changes eating into your returns.
Learn more: Warren Buffett turned $9,800 into a $150B fortune using 8 solid, repeatable money rules. Start using them to get rich (and stay rich) today
Money Market Account (MMA)
Offered by banks, MMA combines savings features with limited check writing capabilities, FDIC insurance, and competitive yields—although typically slightly lower than HYSA.
Money Market Fund (MMF)
These are investment products, not bank accounts. Although money market funds are not FDIC insured, they invest in low-risk, short-term securities and are considered a stable alternative to cash.
Through Public, you can invest in various MMFs, such as the iShares Government Money Market ETF or the North Capital Treasury MMF. Both types of funds invest in short-term, high-quality government securities and are designed to give you 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 benefiting from real-time insights and social features to help you make investment decisions. As a commission-free platform, you don’t have to pay for every trade on stocks, ETFs, cryptocurrencies, Treasuries, or even alternative assets.
Public even offers a high-yield cash account with an industry-leading 3.6% APR with no fees or minimum balance requirements. Over time, this allows you to grow your uninvested cash more efficiently.
brokerage account
These accounts allow you to invest in stocks, ETFs, and mutual funds. While more volatile, they offer higher long-term growth potential.
Some novice investors may be wary of opening a brokerage account, but there are some easy ways to get started – and you can do it with your spare change. Robo-advisors like Acorns automatically invest for you, rounding up the price of each purchase on your linked debit or credit card and putting the difference into a smart ETF portfolio.
$4.25 for morning coffee? Now that’s a 75 cent investment in your future.
Acorns also allows you to set up monthly deposits to enhance your investments. The best part? If you sign up now with a fixed deposit, you can get a $20 bonus investment.
You can increase your risk tolerance depending on whether you want to invest actively in the short term or with an eye on retirement.
Retirement accounts such as 401(k)s and IRAs
Although designed for long-term savings, the increase in contributions to these tax-advantaged accounts shows that many families are concerned about future financial security.
While many such accounts are tied to stock performance, some investors are looking to add investment diversification through gold IRAs. With Thor Metals, you can hold physical gold or gold-related assets in a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold.
This could make them an attractive option for those looking to hedge their retirement funds against economic uncertainty. Keep in mind that gold generally works best as part of a diversified portfolio.
To learn more, you can get a free information guide from Thor Metals with details on how to get up to $20,000 in free precious metals with qualifying purchases.
Pursuing higher yields may be a smart move, but be sure to consider your financial goals, risk tolerance, and liquidity needs before investing. Here are some factors to keep in mind:
Usage of funds
Determine your purpose for saving money. Emergency, housing or retirement? Use a HYSA or MMA for short-term or emergency savings, CDs to store funds you won’t need for a year or more, and a brokerage account with stocks or bonds for long-term goals (5+ years).
risk tolerance
Investing in stocks carries market risks. If you’re forced to sell during a downturn, you could lose value. If protecting your principal is your top priority, consider lower-risk options such as CDs or MMFs, keeping in mind that MMFs are not FDIC insured.
Liquidity needs
Some products, such as CDs, charge penalties for early withdrawals. If access is important, prioritize liquidity or use multiple CDs with staggered maturities.
If you’re a homeowner, another way to easily tap into liquidity is through a home equity line of credit (HELOC). This is a revolving line of credit that uses the equity in your home as collateral so that you can borrow and repay funds as needed – similar to a credit card.
AmeriSave offers flexible HELOCs that allow homeowners to borrow against their equity as needed during the draw period, which can be useful for renovations or debt consolidation. The application is mostly online and available in most states.
It’s ideal for borrowers who want convenience and flexibility without paying a large lump sum upfront. You can only withdraw funds when needed, so it’s great for ongoing or unpredictable costs. Charge interest only based on your usage, and pay off the balance over time. It’s essentially a flexible line of credit secured by your home, and is offered through a primarily online application process.
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Forbes(1); PBS News(2); JPMorgan Chase(3); Federal Reserve Bank of Cleveland(4)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.