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Consumer confidence fell sharply in November, falling to its lowest point since April, when concern about President Trump’s tariffs fueled economic anxiety (1).
Possibly as a result, the Americans pulled back on spending. A delayed report from the Commerce Department showed that while consumer spending rose 0.02% from the previous month, sales were sluggish compared to 0.6% growth in July and August and 1% growth in June (2).
What do they do with their money instead? New research from JPMorgan Chase’s Institute for Financial Health and Wealth Creation found that after accounting for inflation, savings and checking balances have essentially stagnated for nearly two years.
When it comes to high-income households, bank balances actually shrank, reaching negative 2% in October 2025 (3).
The report notes that higher-income households are instead 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 seems traditional accounts just aren’t cutting it (4).
With incomes barely improving and day-to-day costs still high, many consumers now have “just enough to spend, but not enough to pay,” which explains why spending is falling.
Instead of spending more, many households are turning to investment options with higher returns for their money. If you’re thinking of doing the same, here are some of the more popular alternatives:
High yield cash accounts
These work 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 easy access.
A SoFi account can offer a base APY of 3.60%, but new customers can get a boost of 0.70% for up to 6 months for a total APY 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 no overdraft coverage, you keep more money in your pocket. In addition, SoFi account balances up to $3 million are insured by the FDIC through program banks.
To help you save, you can get up to $300 when you sign up with SoFi and set up a direct deposit.
For other savings options that offer a range of new bonus options for customers, check out Moneywise’s list of the best savings accounts of 2025.
Certificates of Deposit (CDs)
With the Fed’s recent interest rate cuts, many savers are already seeing their yields fall. This makes locked-in returns more valuable than ever – and this is where a certificate of deposit (CD) shines.
With a CD, you lock in a guaranteed rate upfront, so your earnings stay constant for a set term, even if rates drop further. It’s predictable, reliable growth, which you don’t always get with traditional accounts.
Raisin makes it even easier by giving you access to high-yield, penalty-free CDs from major US banks, all with no fees and minimums as low as $1.
Do you prefer higher profits? Choose a high yield CD for fixed and reliable earnings. Do you want flexibility? A penalty-free 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 term, Raisin offers a simple way to earn more without worrying about tomorrow’s rate changes affecting your profits.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
Money Market Accounts (MMA)
Offered by banks, MMAs combine savings features with limited check-writing capabilities, FDIC insurance, and competitive returns — though often slightly lower than HYSAs.
Money Market Funds (MMFs)
These are investment products rather than bank accounts. Although not insured by the FDIC, MMFs invest in short-term, low-risk 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 high-quality, very short-term government securities with the goal of giving you a stable place to park your cash while earning interest.
Public is a standalone investment 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 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 efficiently over time.
Brokerage accounts
These accounts allow you to invest in stocks, ETFs and mutual funds. Although more volatile, they offer greater long-term growth potential.
Some first-time investors may feel intimidated by opening a brokerage account, but there are easy ways to get started — and you can do it with the stock exchange. 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? Now that’s a 75 cent investment in your future.
Acorns also allows you to set up a monthly deposit to supercharge your investment. The best part? If you sign up now with a recurring deposit, you can get a $20 bonus investment.
You can increase your risk tolerance depending on whether you want to invest aggressively in the short term or whether you want to focus on the retirement horizon.
Retirement accounts such as 401(k)s and IRAs
Although designed for long-term savings, increased contributions to these tax-advantaged accounts suggest that many households are focusing on future financial security.
While many accounts of this type are tied to the performance of stocks, some investors seek additional diversification through gold IRAs. With Thor Metals, you can hold physical gold or gold-related assets in a retirement account that 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 protect their pension 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, which includes details on how to get up to $20,000 in free precious metals on eligible purchases.
Chasing higher returns can be a smart move, but always consider your financial goals, risk tolerance, and liquidity needs before making an investment. Here are some factors to keep in mind:
The purpose of the funds
Determine what you are saving for. An emergency, a house or a pension? Use HYSAs or MMAs for short-term or emergency savings, CDs for funds you won’t need for a year or more, and stock or bond brokerage accounts for long-term goals (5+ years).
Risk tolerance
Investing in stocks involves market risks. You could lose value if you are forced to sell during an economic downturn. If protecting your principal is your top priority, consider low-risk options like CDs or MMFs, keeping in mind that MMFs are not insured by the FDIC.
Liquidity needs
Some products, such as CDs, charge early withdrawal penalties. If access is important, prioritize liquidity or use multiple CDs with staggered maturities.
If you’re a homeowner, another easy way to tap into cash is through a home equity line of credit (HELOC). It’s a revolving line of credit that uses the equity in your home as collateral so you can borrow and repay funds as needed — similar to a credit card.
AmeriSave offers a flexible HELOC that allows homeowners to borrow against their home equity as needed during a drawdown period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.
It is suitable for borrowers who want convenience and flexibility rather than a lump sum advance loan. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. You only charge interest on what you use, and you’ll pay back the balance over time. It is essentially a flexible line of credit secured by your home, delivered through an 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 construed as advice. Offered without warranty of any kind.
