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Having a hefty savings account balance might feel like a win — and in many ways, it is. Most Americans don’t even have enough cash to pay the bills for a few months if they lose their income.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But is there such a thing as keeping too much in savings? If you’re sitting on $50,000 in a savings account, then you may be costing yourself tens of thousands of dollars in the long run.Here’s how to tell how much money you need in savings, as well as where you might put the rest of your money once your bank account is flush.How much should you keep in savings?Savings accounts are the best place to keep your emergency fund, as well as money you’re planning to spend within a couple of years.A good rule of thumb is to keep three to six months’ worth of living expenses in a savings account to cover an emergency.Some people may want to save extra, like those who:Own a homeHave frequent health issuesHave an unstable jobHave a large family to supportIf any of these apply, then consider aiming for nine to 12 months’ worth of expenses.And if you’re planning to make a big purchase within the next couple of years, then a savings account is the best place for those funds, too.One thing is clear, though: Almost no one needs $50,000 in savings.How keeping too much money in savings can burn youIf you keep more cash than necessary in a savings account, then you may come to regret it for two big reasons.1. You may lose money to inflationToday’s best high-yield savings accounts pay interest rates in the neighborhood of 4%. That’s a nice little boost to your savings.However, there are years when inflation causes prices to rise by over 4%, which means your money loses value even though it’s earning interest. And even if your savings account APY is higher than the rate of inflation, you’ll barely come out ahead.Are you earning way less than 4% on your savings? Most Americans are. Click here to see our list of the best high-yield savings accounts and start earning a higher interest rate today.2. Your retirement savings may sufferMost Americans can’t afford not to invest the money they’re saving for retirement. To build up a nest egg that can sustain you through your golden years, you’ll likely need your money to grow faster than it could in any savings account.The U.S. stock market has gained an average of 10% per year since 1957, as measured by the S&P 500 Index. That’s more than twice the return offered by today’s best savings accounts.Say you have $50,000 in a savings account, but you only need $20,000 in your emergency fund. If you took that extra $30,000, invested it in stocks, and earned 7% per year (a conservative estimate), then you’d have:$59,000 in 10 years$116,000 in 20 years$228,000 in 30 yearsThat kind of money could make an enormous difference for a retiree living on a fixed income.How to put your money to better useIf you have more cash than you need in your savings account, one of the best things you can do with it is to invest it through an individual retirement account (IRA). An IRA makes a fantastic home for your retirement savings.You can invest in stocks, bonds, index funds, and more through an IRA.Investments held in an IRA are free from capital gains tax and dividend tax.Opening an IRA is simple.Find a great stock broker that charges low fees and offers IRAsOpen a new IRA through the broker’s website, app, or customer service lineLink an external bank account so you can fund your IRAAfter that, you can find and purchase investments through your broker’s website or app. Even better, you can set up recurring, automatic purchases so you keep investing more over time.Ready to kick your retirement savings into overdrive and get huge tax breaks? Check out our list of the best IRA brokers and open a new account today.Do your research before you investIRAs come with some rules and requirements you need to meet in order to enjoy their full benefits. And they only allow you to invest up to $7,000 a year (or $8,000 if you’re 50 or older). Beyond that limit, you may need to turn to a regular brokerage account without the tax benefits.Further, you don’t want to invest in stocks without understanding them somewhat first. The simplest way to invest in the stock market — and the way I invest most of my retirement savings — is to buy a low-fee S&P 500 index fund. Then you can rest easy knowing you own a piece of 500 of the biggest, most successful companies in the U.S.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”
Image source: The Motley Fool/Upsplash
Having a hefty savings account balance might feel like a win — and in many ways, it is. Most Americans don’t even have enough cash to pay the bills for a few months if they lose their income.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
But is there such a thing as keeping too much in savings? If you’re sitting on $50,000 in a savings account, then you may be costing yourself tens of thousands of dollars in the long run.
Here’s how to tell how much money you need in savings, as well as where you might put the rest of your money once your bank account is flush.
How much should you keep in savings?
Savings accounts are the best place to keep your emergency fund, as well as money you’re planning to spend within a couple of years.
A good rule of thumb is to keep three to six months’ worth of living expenses in a savings account to cover an emergency.
Some people may want to save extra, like those who:
Own a home
Have frequent health issues
Have an unstable job
Have a large family to support
If any of these apply, then consider aiming for nine to 12 months’ worth of expenses.
And if you’re planning to make a big purchase within the next couple of years, then a savings account is the best place for those funds, too.
One thing is clear, though: Almost no one needs $50,000 in savings.
How keeping too much money in savings can burn you
If you keep more cash than necessary in a savings account, then you may come to regret it for two big reasons.
1. You may lose money to inflation
Today’s best high-yield savings accounts pay interest rates in the neighborhood of 4%. That’s a nice little boost to your savings.
However, there are years when inflation causes prices to rise by over 4%, which means your money loses value even though it’s earning interest. And even if your savings account APY is higher than the rate of inflation, you’ll barely come out ahead.
Most Americans can’t afford not to invest the money they’re saving for retirement. To build up a nest egg that can sustain you through your golden years, you’ll likely need your money to grow faster than it could in any savings account.
The U.S. stock market has gained an average of 10% per year since 1957, as measured by the S&P 500 Index. That’s more than twice the return offered by today’s best savings accounts.
Say you have $50,000 in a savings account, but you only need $20,000 in your emergency fund. If you took that extra $30,000, invested it in stocks, and earned 7% per year (a conservative estimate), then you’d have:
$59,000 in 10 years
$116,000 in 20 years
$228,000 in 30 years
That kind of money could make an enormous difference for a retiree living on a fixed income.
How to put your money to better use
If you have more cash than you need in your savings account, one of the best things you can do with it is to invest it through an individual retirement account (IRA). An IRA makes a fantastic home for your retirement savings.
You can invest in stocks, bonds, index funds, and more through an IRA.
Investments held in an IRA are free from capital gains tax and dividend tax.
Opening an IRA is simple.
Find a great stock broker that charges low fees and offers IRAs
Open a new IRA through the broker’s website, app, or customer service line
Link an external bank account so you can fund your IRA
After that, you can find and purchase investments through your broker’s website or app. Even better, you can set up recurring, automatic purchases so you keep investing more over time.
IRAs come with some rules and requirements you need to meet in order to enjoy their full benefits. And they only allow you to invest up to $7,000 a year (or $8,000 if you’re 50 or older). Beyond that limit, you may need to turn to a regular brokerage account without the tax benefits.
Further, you don’t want to invest in stocks without understanding them somewhat first. The simplest way to invest in the stock market — and the way I invest most of my retirement savings — is to buy a low-fee S&P 500 index fund. Then you can rest easy knowing you own a piece of 500 of the biggest, most successful companies in the U.S.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
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A credit card sign-up bonus is generally worth hundreds of dollars in free travel or cash back. It’s how the best credit cards compete for your business.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But what happens if you want to cancel the card right after getting the bonus?While it might seem like a simple way to game the system, it could have some unintended consequences. Here’s what you need to know before making that move.Credit card issuers have rules in placeCredit card companies offer sign-up bonuses to attract long-term customers, not just to hand out free rewards. To prevent abuse, issuers have strict terms and conditions that you agree to when applying for the card. These often include minimum spending requirements and rules about keeping the account open for a certain period.Canceling your credit card right after earning the sign-up bonus could put you on the issuer’s radar and lead to negative repercussions, including the possibility of losing the bonus or being blacklisted from future offers.The issuer may take back the bonusOne major risk of canceling your card too soon is that the issuer may require you to repay your sign-up bonus. Many credit card companies include language in their terms that allows them to take back rewards if they suspect abuse.For example:Chase’s 5/24 rule and bonus clawbacks: Chase is known for its strict rules on sign-up bonuses. If you close a card shortly after receiving a bonus, Chase may take back the rewards. Additionally, they may restrict you from earning future sign-up bonuses under their 5/24 rule, which limits the number of cards you can open within 24 months.American Express’s “once per lifetime” rule: Amex has a policy that typically limits welcome bonuses to once per lifetime, per card. If they suspect you’re trying to game the system, they could not only claw back your points but also prevent you from getting bonuses on future cards.Citi’s bonus terms: Citi explicitly states that if an account is closed within a certain time frame (often within 12 months of opening), they may take back any rewards earned.It can hurt your credit scoreCanceling a credit card soon after opening it can have a negative impact on your credit score in several ways:Shortens your credit history: The length of your credit history plays a role in your credit score. Closing an account reduces your average account age, which could lower your score.Increases your credit utilization ratio: Closing a credit card reduces your available credit, making your credit utilization ratio higher — this only comes into effect if you carry a balance. A higher utilization ratio will negatively impact your credit score.Leads to a hard inquiry without long-term benefit: When you apply for a credit card, the issuer performs a hard inquiry on your credit report. If you close the account too soon, you’ve taken the hit without the long-term benefit of keeping the card open.You may be blacklisted from future offersCredit card issuers keep track of customer behavior, and if they determine you’re opening and closing accounts just for the bonuses (a practice called “churning”), they may blacklist you from future offers. Some banks have even banned customers from opening any new credit accounts with them.Looking for the best credit card sign-up bonuses? Check out our top picks for the best offers available right now.What should you do instead?If you’re looking to maximize credit card rewards while keeping your financial health in check, consider these alternatives:Keep the card open and downgrade it: If the card has an annual fee and you don’t want to keep paying it, ask the issuer if you can downgrade to a no annual fee card instead of canceling outright. Check out our list of best no annual fee credit cards now.Use the card occasionally: Even if it’s not your primary card, making a small purchase every few months can help keep the account active and maintain your credit score.Wait before closing: If you still want to cancel, consider waiting at least a year before doing so. This way, you reduce the risk of losing the bonus or being flagged for churning.The bottom lineWhile it might be tempting to cancel a credit card as soon as you earn the sign-up bonus, doing so can come with serious drawbacks. From losing your rewards to hurting your credit score and even being blacklisted from future offers, the risks often outweigh the benefits. Instead, consider keeping the card open or downgrading to a no-fee card to maintain a healthy credit profile while still enjoying the rewards.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.”}]] [[{“value”:”
Image source: Getty Images
A credit card sign-up bonus is generally worth hundreds of dollars in free travel or cash back. It’s how the best credit cards compete for your business.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
But what happens if you want to cancel the card right after getting the bonus?
While it might seem like a simple way to game the system, it could have some unintended consequences. Here’s what you need to know before making that move.
Credit card issuers have rules in place
Credit card companies offer sign-up bonuses to attract long-term customers, not just to hand out free rewards. To prevent abuse, issuers have strict terms and conditions that you agree to when applying for the card. These often include minimum spending requirements and rules about keeping the account open for a certain period.
Canceling your credit card right after earning the sign-up bonus could put you on the issuer’s radar and lead to negative repercussions, including the possibility of losing the bonus or being blacklisted from future offers.
The issuer may take back the bonus
One major risk of canceling your card too soon is that the issuer may require you to repay your sign-up bonus. Many credit card companies include language in their terms that allows them to take back rewards if they suspect abuse.
For example:
Chase’s 5/24 rule and bonus clawbacks: Chase is known for its strict rules on sign-up bonuses. If you close a card shortly after receiving a bonus, Chase may take back the rewards. Additionally, they may restrict you from earning future sign-up bonuses under their 5/24 rule, which limits the number of cards you can open within 24 months.
American Express’s “once per lifetime” rule: Amex has a policy that typically limits welcome bonuses to once per lifetime, per card. If they suspect you’re trying to game the system, they could not only claw back your points but also prevent you from getting bonuses on future cards.
Citi’s bonus terms: Citi explicitly states that if an account is closed within a certain time frame (often within 12 months of opening), they may take back any rewards earned.
It can hurt your credit score
Canceling a credit card soon after opening it can have a negative impact on your credit score in several ways:
Shortens your credit history: The length of your credit history plays a role in your credit score. Closing an account reduces your average account age, which could lower your score.
Increases your credit utilization ratio: Closing a credit card reduces your available credit, making your credit utilization ratio higher — this only comes into effect if you carry a balance. A higher utilization ratio will negatively impact your credit score.
Leads to a hard inquiry without long-term benefit: When you apply for a credit card, the issuer performs a hard inquiry on your credit report. If you close the account too soon, you’ve taken the hit without the long-term benefit of keeping the card open.
You may be blacklisted from future offers
Credit card issuers keep track of customer behavior, and if they determine you’re opening and closing accounts just for the bonuses (a practice called “churning”), they may blacklist you from future offers. Some banks have even banned customers from opening any new credit accounts with them.
If you’re looking to maximize credit card rewards while keeping your financial health in check, consider these alternatives:
Keep the card open and downgrade it: If the card has an annual fee and you don’t want to keep paying it, ask the issuer if you can downgrade to a no annual fee card instead of canceling outright. Check out our list of best no annual fee credit cards now.
Use the card occasionally: Even if it’s not your primary card, making a small purchase every few months can help keep the account active and maintain your credit score.
Wait before closing: If you still want to cancel, consider waiting at least a year before doing so. This way, you reduce the risk of losing the bonus or being flagged for churning.
The bottom line
While it might be tempting to cancel a credit card as soon as you earn the sign-up bonus, doing so can come with serious drawbacks. From losing your rewards to hurting your credit score and even being blacklisted from future offers, the risks often outweigh the benefits. Instead, consider keeping the card open or downgrading to a no-fee card to maintain a healthy credit profile while still enjoying the rewards.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
[[{“value”:”Image source: The Motley Fool/Unsplash
High-yield savings accounts (HYSAs) have become a go-to option for people looking to grow their cash without taking on risk. With interest rates much higher than traditional savings accounts, they offer a great way to earn passive income while keeping money safe and accessible.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But despite their benefits, many people make a critical mistake when using these accounts — one that could cost them thousands of dollars in the long run.Don’t treat your HYSA like a long-term investmentWhile HYSAs are great for growing your money safely, they are not designed for long-term investing.Many people make the mistake of depositing large sums of money into these accounts and leaving it there for years, thinking they’re making a smart financial move. But in reality, this strategy could be costing you money.Here’s why:You’re missing out on higher returns: While HYSAs are safe, they can’t compete with long-term investments like index funds or stocks. Historically, the stock market has averaged annual returns of around 10%, significantly outpacing high-yield savings accounts.Inflation will outpace your savings: Even if your HYSA earns 4.00% APY, inflation typically rises at an average rate of around 2% to 3% per year. That means your real purchasing power is only growing by a small margin, if at all. Over time, inflation can erode the value of your money.Interest rates fluctuate: Unlike fixed-rate investments, HYSA rates can go up or down depending on the Federal Reserve’s moves. If rates drop, your earnings could shrink without notice.The right way to use a high-yield savings accountHigh-yield savings accounts are great — they’re just not meant for long-term wealth building. Here’s how to use them the right way:Emergency fund savings: Keep three to six months’ worth of essential expenses in an HYSA. This ensures your emergency fund is accessible while earning some interest.Short-term savings goals: If you’re saving for a vacation, wedding, home renovation, or another expense within the next couple of years, an HYSA is a great place to park your cash.A holding spot for investments: If you’re planning to invest but waiting for the right opportunity, an HYSA can temporarily store your money while earning interest.Start earning more than 10 times the national average on your money. Apply for a high-yield savings account today.Where to put extra cash insteadIf you have a large amount of money sitting in an HYSA beyond what you need for emergencies or short-term goals, here are better alternatives:Index funds: If your goal is long-term growth, consider investing in a diversified stock market fund. Over decades, these investments historically outperform savings accounts.Certificates of deposit (CDs): If you don’t need immediate access to your money, short-term CDs (6- to 12-month terms) may offer even higher interest rates than HYSAs.Money market accounts: These accounts function similarly to HYSAs but may offer check-writing privileges and higher interest rates in some cases.Treasury bills or I bonds: For a low-risk investment with better protection against inflation, U.S. government bonds can be a solid choice.Looking for the best options to maximize your money? Check out the top high-yield savings accounts available right now.Make your money work for youHigh-yield savings accounts are an excellent tool — but only if you use them correctly. They’re perfect for emergency savings and short-term goals, but shouldn’t be treated as an investment vehicle. If you’re keeping large amounts of cash in an HYSA long term, you’re likely missing out on better opportunities for growth.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. SoFi disclosure:1. Up to $300 Bonus Tiered DisclosureNew and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.2. APY disclosuresSoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”
Image source: The Motley Fool/Unsplash
High-yield savings accounts (HYSAs) have become a go-to option for people looking to grow their cash without taking on risk. With interest rates much higher than traditional savings accounts, they offer a great way to earn passive income while keeping money safe and accessible.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
But despite their benefits, many people make a critical mistake when using these accounts — one that could cost them thousands of dollars in the long run.
Don’t treat your HYSA like a long-term investment
While HYSAs are great for growing your money safely, they are not designed for long-term investing.
Many people make the mistake of depositing large sums of money into these accounts and leaving it there for years, thinking they’re making a smart financial move. But in reality, this strategy could be costing you money.
Here’s why:
You’re missing out on higher returns: While HYSAs are safe, they can’t compete with long-term investments like index funds or stocks. Historically, the stock market has averaged annual returns of around 10%, significantly outpacing high-yield savings accounts.
Inflation will outpace your savings: Even if your HYSA earns 4.00% APY, inflation typically rises at an average rate of around 2% to 3% per year. That means your real purchasing power is only growing by a small margin, if at all. Over time, inflation can erode the value of your money.
Interest rates fluctuate: Unlike fixed-rate investments, HYSA rates can go up or down depending on the Federal Reserve’s moves. If rates drop, your earnings could shrink without notice.
The right way to use a high-yield savings account
High-yield savings accounts are great — they’re just not meant for long-term wealth building. Here’s how to use them the right way:
Emergency fund savings: Keep three to six months’ worth of essential expenses in an HYSA. This ensures your emergency fund is accessible while earning some interest.
Short-term savings goals: If you’re saving for a vacation, wedding, home renovation, or another expense within the next couple of years, an HYSA is a great place to park your cash.
A holding spot for investments: If you’re planning to invest but waiting for the right opportunity, an HYSA can temporarily store your money while earning interest.
If you have a large amount of money sitting in an HYSA beyond what you need for emergencies or short-term goals, here are better alternatives:
Index funds: If your goal is long-term growth, consider investing in a diversified stock market fund. Over decades, these investments historically outperform savings accounts.
Certificates of deposit (CDs): If you don’t need immediate access to your money, short-term CDs (6- to 12-month terms) may offer even higher interest rates than HYSAs.
Money market accounts: These accounts function similarly to HYSAs but may offer check-writing privileges and higher interest rates in some cases.
Treasury bills or I bonds: For a low-risk investment with better protection against inflation, U.S. government bonds can be a solid choice.
High-yield savings accounts are an excellent tool — but only if you use them correctly. They’re perfect for emergency savings and short-term goals, but shouldn’t be treated as an investment vehicle. If you’re keeping large amounts of cash in an HYSA long term, you’re likely missing out on better opportunities for growth.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
SoFi disclosure: 1. Up to $300 Bonus Tiered Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
2. APY disclosures
SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
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If you’re not already using these tricks, it’s time to start — savings await.
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You’ve probably accepted the fact that you can’t live without your smartphone, even if it is an extra expense on top of your other bills. Of course, if you use your phone wisely, it could turn out to be a great investment. That little phone might be small, but it can make a big impact on your savings game. Not only can it keep you in touch with your family and friends, but it can help lower…
Tarra “Madam Money” Jackson is a financial educator, international speaker, author, and wealth empowerment strategist helping you heal, build, and grow your wealth.
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