{"id":89840,"date":"2025-08-24T16:13:18","date_gmt":"2025-08-24T16:13:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/89840\/"},"modified":"2025-08-24T16:13:18","modified_gmt":"2025-08-24T16:13:18","slug":"where-americans-are-saving-money-2025-americans-are-hoarding-cash-but-not-in-banks-heres-where-savvy-savers-are-stashing-it","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/89840\/","title":{"rendered":"Where Americans are saving money 2025: Americans are hoarding cash, but not in banks – here\u2019s where savvy savers are stashing it"},"content":{"rendered":"

Best savings accounts for high yield<\/a>: Even though US inflation remains at 2.7% and checking and savings account balances are shrinking, consumer spending in the US is still surprisingly strong, as per a report. So where is all the money coming from?Where Are Americans Parking Their CashNew data from JPMorgan Chase\u2019s Household Finances Pulse may provide a clue. After analyzing information from 4.7 million households, the study found that while traditional bank balances have flatlined in 2025, total cash reserves, which include money market funds, brokerage accounts, and certificates of deposit (CDs) are growing at a steady pace of 3% to 5% per year, as per a Moneywise report.
ALSO READ: As stock market nears a P\/E ratio of 30 – should investors worry?<\/a>
Lower-Income Households Lead Surge in Cash ReservesThe most notable gains are among lower-income households, according to the report. Those in the lowest income quartile saw their total cash reserves grow by about 5% to 6%, as per the Moneywise report. This shift toward higher-yield options may be one reason consumer spending hasn\u2019t slowed down, even after economic challenges, according to the report.Where the Money Is Going InsteadInstead of leaving their money in checking or standard savings accounts, many households are shifting to financial tools that offer better returns, as per the Moneywise report. Here’s a look at where they\u2019re moving their money:\"ETLive EventsShift from Checking Accounts to Higher-Yield Investments AcceleratesHigh-yield savings accounts (HYSAs): These work like traditional savings accounts but offer interest rates between 4% and 5% APY as of mid-2025, it is often available through online banks with lower overhead, reported Moneywise.
ALSO READ: iPhone 13 still rules, but Samsung\u2019s new threat could shatter Apple\u2019s grip on the market<\/a>
Certificates of Deposit See Increased Demand as Rates RiseCertificates of deposit (CDs): CDs let savers lock in money for a set term in exchange for guaranteed interest, with rates varying by term but can exceed 4% for longer commitments, as per the report.
Money Market Accounts Offer Safety and FlexibilityMoney market accounts (MMAs): These accounts combine features of savings and limited checking, and they offer FDIC insurance and competitive rates, though usually slightly lower than HYSAs, according to Moneywise.Money Market Funds Gain Traction Despite Lack of FDIC InsuranceMoney market funds (MMFs): These are investment products rather than bank accounts, and even though they\u2019re not FDIC-insured but are considered relatively stable and invest in short-term, low-risk securities, as reported by Moneywise.Brokerage Accounts Attract Investors Seeking GrowthBrokerage accounts: These allow investors to put money into stocks, mutual funds, and ETFs, but are more volatile and have higher potential returns over the long term, according to the report.Retirement Account Contributions Continue Upward TrendRetirement accounts (401(k)s, IRAs): Contributions to retirement accounts are also rising, showing that many households are still focused on their long-term financial future, as per the Moneywise report.FAQsWho\u2019s saving the most right now?
Surprisingly, lower-income households are seeing the fastest growth in savings, with a 5% to 6% increase in total cash reserves.
Why are people still spending a lot even though their bank accounts aren\u2019t growing?
Because many are moving their money into different types of accounts that earn better interest or returns, so their cash reserves are actually growing even if checking and savings balances look flat, as per the Moneywise report.<\/p>\n","protected":false},"excerpt":{"rendered":"Best savings accounts for high yield: Even though US inflation remains at 2.7% and checking and savings account…\n","protected":false},"author":2,"featured_media":89841,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[44899,84,44897,44900,4176,44898,44901,4174,4175,56,54,55],"class_list":["post-89840","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-brokerage-accounts","tag-business","tag-cash-hoarding","tag-consumer-spending-trends","tag-finance","tag-high-yield-savings-accounts","tag-money-market-funds","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/89840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=89840"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/89840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/89841"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=89840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=89840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=89840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}