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Consumer confidence fell sharply in November, falling to its lowest point since April, when worries about President Trump’s tariffs were driving economic worries (1).
Perhaps as a result, Americans have pulled back on spending. A delayed report from the Commerce Department showed that consumer spending rose 0.02% from the previous month, but sales slowed compared to 0.6% growth in July and August and 1% growth in June (2).
What are they doing with their money instead? New research from the JPMorgan Chase Institute of Financial Health and Wealth Creation found that savings and checking balances have essentially held steady for nearly two years after accounting for inflation.
When it comes to high-income households, bank balances have also shrunk, landing at negative 2% in October 2025 (3).
The report notes 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 – it looks like traditional accounts just aren’t cutting it (4).
With incomes rising and everyday costs still high, many consumers now have “enough to afford but not enough to spend,” which explains why spending is falling.
Instead of 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 popular options:
High Yield Cash Accounts
These operate 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 may offer a base 3.60% APY, but new customers can receive a 0.70% increase for 6 months for a total APY of 4.30%. That’s more than ten times the national deposit savings rate, according to a November report from the FDIC.
With no account fees and no-fee overdraft coverage, you keep more of your money in your pocket. In addition, SoFi account balances 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 direct deposit.
For other savings options that offer a range of new customer bonus options, check out Moneywise’s list of the top savings accounts of 2025.
Certificates of Deposit (CDs)
After the Fed recently cut interest rates, many savers are seeing those yields drop. This makes locked-in returns more valuable than ever — and that’s where certificates of deposit (CDs) shine.
With a CD, you lock in a guaranteed rate upfront, so your earnings remain stable for a set period, even if rates slide further. This is predictable, reliable growth, which you don’t always get with traditional accounts.
Raisin makes it even easier by giving you access to high-yield and no-penalty CDs from top US banks, all with no fees and minimums as low as $1.
Like high returns? Choose high yield CDs for fixed, reliable income. Want flexibility? No penalty CD allows you Access your money quickly Without the usual withdrawal fees that come with a normal 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 about tomorrow’s rate changes eating 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 — though often slightly lower than 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, which aim to give you a stable place to park your cash while earning interest.
Public is a self-directed investment platform where you can manage your portfolio, while benefiting from real-time insights and social features to help you make your investment decisions. As a commission-free platform, you won’t pay per trade on stocks, ETFs, cryptocurrencies, treasuries, and alternative assets.
Public also offers a high-yield cash account at an industry-leading 3.6% APY, no fees and minimum balance requirements. This allows you to grow your excess cash more efficiently 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 new investors may feel intimidated by opening a brokerage account, but there are easier 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 value 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? This is now a 75-percent investment in your future.
Acorns lets you set up monthly deposits to supercharge your investments. The best part? If you sign up now with a recurring deposit, you can get a $20 bonus investment.
You can dial in your risk tolerance whether you want to invest aggressively in the short term or set your sights on your retirement horizon.
Retirement accounts such as 401(k)s and IRAs
Although designed for long-term savings, increasing contributions to these tax-advantaged accounts suggest that many households are focused on future financial security.
While many of these types of accounts are tied to stock performance, some investors are looking for more diversification through gold IRAs. With the help of Thor Metals, you can place physical gold or gold-related assets inside a retirement account, which can combine the tax benefits 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 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.
Chasing high yields can be a smart move, but always consider your financial goals, risk tolerance and liquidity needs before investing. Here are some factors to keep in mind:
Purpose of Funding
Determine what you are saving for. Emergency, 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 involves market risk. If you are forced to sell during a downturn, you may 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 requirements
Some products, such as CDs, charge a penalty for early withdrawal. If access is important, prioritize liquidity or use multiple CDs with staggered maturity dates.
If you’re a homeowner, another easy way to tap into liquidity is with a home equity line of credit (HELOC). It’s a revolving line of credit that lines up the equity in your home as collateral, so you can borrow and repay as needed — just like a credit card.
AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during the draw period, making it useful for refinancing or debt consolidation. The application is mostly online and available in most states.
It is a good fit for borrowers who want convenience and flexibility rather than a large lump sum loan advance. You can withdraw money only when you need it, so it’s useful for ongoing or unexpected expenses. Interest is charged only on what you use, and you’ll pay off the balance over time. It’s essentially a flexible line of credit secured by your home, delivered mostly through an online application process.
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Forbes (1); PBS News (2); JP Morgan Chase (3); Federal Reserve Bank of Cleveland (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
