If you've been watching the markets lately, you've probably felt the urge to keep things simple and safe. Between whispers of rate cuts and geopolitical curveballs, a lot of people I talk to are pulling back and asking where they can keep their cash without stressing about it.

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I've spent years writing about personal finance, and when the world gets unpredictable, the basics matter more than ever.

1. High-yield savings accounts (HYSAs)

Still one of my favorite money moves in 2025.

These FDIC-insured accounts offer easy access to your cash and rates that are still hovering around 4.00% APY with top banks as of mid-July. That's lightyears ahead of the 0.01% some big-name banks are offering.

If you're stashing emergency funds or short-term savings, HYSAs hit the sweet spot of being safe, flexible, easy to open, and actually earning something.

2. Money market accounts

These aren't the same as money market funds, but instead are like high-yield savings accounts with a few differences.

Some offer check-writing privileges or debit cards, making them ideal for people who want slightly more flexibility without sacrificing safety. They're also FDIC insured when offered by banks or NCUA insured if you're using a credit union.

These accounts sometimes come with withdrawal and transfer limits. And often they have large minimums to hit the highest rate tiers.

Rates can be just as competitive as HYSAs if you shop around. Start shopping today by visiting our best money market accounts page.

3. Certificates of deposit (CDs)

If you want a guaranteed return and don't need instant access to your cash, CDs might be the move for you.

Many banks are offering 3-month to 1-year CDs with APYs around 4.00%, but the catch is you'll need to lock in your money for the term. If you break it early, expect a penalty that can wipe out any gains you've made.

Still, if you don't plan to touch the funds, locking in a rate now could protect you against future Fed cuts.

Check current CD rates and terms to lock yours in here.

4. U.S. Treasury bills

If you're willing to go a bit beyond a bank account, T-bills are about as safe as it gets.

These short-term government-backed securities are exempt from state and local taxes and can be bought directly through TreasuryDirect.gov. As of July, many 3- and 6-month T-bills are yielding north of 5%.

They're ultra-low risk and can be a smart place to park large sums temporarily.

One place to avoid: big-bank savings accounts

If you're earning 0.01%, your bank is taking you for a ride. With so many FDIC-insured accounts paying 400x more, there's just no reason to leave your cash sitting in a dead zone. Move it into a high-yield savings account today.

Don't wait until rates drop

The Federal Reserve hasn't cut interest rates yet, but it's expected to later this year. And once that happens, banks will likely trim those juicy APYs we're seeing today.

If you're sitting on cash and not earning at least 4.00%, now's the time to act. These safe havens won't stay this generous forever.

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After three years as a customer with Chase, and watching my husband use the bank for over a decade, I've got a clear picture of what this giant bank does well and where it really falls short. Spoiler: If you love rewards credit cards, Chase will wow you. But if you're parking savings there, think twice.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

What I like about Chase (hint: the credit cards)

Chase's credit cards are a major win. They have some of the best travel perks, generous sign-up bonuses, and flexible rewards that really match how we spend. Their Ultimate Rewards program makes redeeming points easy and valuable. And if you're a rewards card enthusiast, these cards alone make Chase hard to beat.

But let's get real about savings rates

Chase and other big banks really drop the ball when it comes to savings account interest rates. Chase Bank pays a paltry 0.01% APY. That's 400x lower than what some online banks offer right now. To put it in perspective: if you had $10,000 in a Chase savings account, you'd earn about $1 a year. The same money in a high-yield online savings account could make you around $400 a year.

It's simply the cost of convenience paired with legacy banking. So if you're serious about growing your savings, keeping it at Chase isn't the smartest move.

The fees you need to know

Chase's fees are stuck in the past. The checking account carries a monthly fee that's increasing in August, and you have to jump through hoops to avoid it -- like $500 in monthly deposits or maintaining hefty balances. Meanwhile, many online banks don't charge any monthly fees at all, making Chase's fees seem outdated and unnecessary.

Overdraft fees aren't much better. Chase's Overdraft Assist can help if you're only slightly overdrawn, but these fees add up fast if you're not careful.

So what's a better option?

Chase isn't a scam -- it's fine for convenience and credit cards -- but it's not the smartest choice if you want to avoid fees and earn meaningful interest.

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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.JPMorgan Chase is an advertising partner of Motley Fool Money. Brooklyn Welch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

Moving your money from one savings account to another isn't going to make you rich. But if your cash is sitting in a low-interest account at a big bank like Chase, Bank of America, or Wells Fargo, you're leaving easy money on the table.

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And by "easy," I mean really easy.

Just by switching to a high-yield savings account, you could earn hundreds more per year in interest. That might not fund early retirement, but it could cover your next roundtrip flight. And it takes all of five minutes to set up in most cases.

The math is simple

Most big banks are still offering 0.01% APY on their standard savings accounts. That's not a typo. If you have $10,000 in your account, you'll earn a whopping $1 in interest after a year.

Now compare that to the top high-yield savings accounts, which in July 2025 are paying around 4.00% APY. Same $10,000 deposit, but this time you're looking at $400 a year in interest.

That's real money. Weekend getaway kind of money.

Make your emergency fund work for you

People generally keep their emergency fund in a savings account. That money needs to be safe and easy to access. But that doesn't mean it has to sit there doing nothing.

A good high-yield savings account still gives you:

• FDIC insurance up to $250,000
• Same-day or next-day transfers
• Unlimited transfers
• No fees

Why big banks don't pay up

It's not because they can't. It's because they don't have to.

Chase and Bank of America know most customers won't bother moving their money. And as long as that's true, they'll keep pocketing the difference while their customers earn pennies.

But you don't have to accept that. And once you make the switch, you'll wonder why you waited so long.

How to switch (in under 10 minutes)

1. Open a high-yield savings account with an online bank or credit union.
2. Transfer your savings from your old account.
3. Keep your old account open temporarily if it's linked to bills or apps.
4. Update your direct deposit or auto-transfers if needed.
5. Done.

No, it won't change your life

This won't change your life, but it doesn't have to. Some financial wins are big and dramatic. Others are just smart.

If switching your savings account means your money grows while you sleep, why not do it?

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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.Bank of America is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.

If you've ever checked your bank statement and spotted an unexpected overdraft fee, you're not the only one. U.S. banks made a staggering $12.1 billion in overdraft fees in 2024, according to the Financial Health Network.

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Here's what you need to know about sneaky overdraft fees -- and the accounts you can switch to in order to avoid them.

How do overdraft fees work?

When your checking account balance dips below zero and a transaction still goes through, your bank covers the difference and charges you what's called an "overdraft fee." It's basically a small, high-interest loan you never asked for.

Some banks will even rearrange your daily transactions from largest to smallest, increasing the odds that your balance drops below zero. That helps them charge more overdraft fees.

If overdraft fees are showing up on your statements, even just once or twice a year, it's a sign that your bank doesn't have your best interests in mind. The good news is that you don't have to settle for that anymore.

Find a bank that doesn't charge you at all

Many forward-looking banks have eliminated overdraft fees altogether.

What if you're not ready to switch banks?

If you're not quite ready to move your money, you can still take steps to protect yourself in the meantime.

Start by turning on low balance alerts on your banking app so you'll get a notification any time your cash drops below a set amount. This gives you time to move your money or cut spending before you get hit with a fee.

Many banks also let you link your savings account to your checking account to cover overdrafts. But watch out: Some banks still charge a transfer fee for this, so check the terms first.

It's also a smart idea to leave a small cushion in your checking account -- even $50 or $100 can prevent most accidental overdrafts. Pair that with a simple budgeting app that tracks your spending in real time, and you'll have a much better handle on your balance.

Don't let your bank profit from a small mistake

Overdraft fees aren't necessary anymore. If they keep popping up on your account, it's a clear sign your bank is behind the times -- or more interested in charging you than helping you.

Modern banks are leading the way with fee-free accounts, better apps, and higher savings rates. You don't have to put up with surprise charges anymore.

Ready to get started? Open one of your favorite high-yield savings accounts today to protect your money.

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My uncle has been retired for about a decade. He's smart and lives well off his investments. But one of his money habits drives me nuts.

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He keeps between $100,000 to $200,000 in a checking account at any given time, just sitting there as future "spending money." And it earns zero interest.

I don't say anything (I've learned not to mix family and money advice), but it hurts watching him miss out on thousands every year in potential interest.

If you are retired and holding a large cash pile, don't let it sit idle like my uncle. Here's why a high-yield savings account (HYSA) is a smarter place for your money.

What makes high-yield savings accounts better?

High-yield savings accounts are just like other bank accounts you've always used -- only they pay way more interest.

Most HYSAs are offered by online banks, which save money by skipping physical branches and having streamlined operations. Those savings are passed on to customers in the form of higher rates.

Most online HYSAs offer:

• FDIC insurance (up to $250,000 per depositor, per bank)
• Most come with no monthly fees
• Transfers in and out are fast and easy
• You can automate deposits to simplify your cash flow

For retirees living off investment income, required minimum distributions (RMDs), or part-time earnings, an HYSA is a great place to hold cash between withdrawals.

How much interest could you earn?

Top HYSAs today are paying around 4.00% APY. That's a huge jump compared to the average checking account rate of just 0.07% (or worse, 0.01% at many big banks!)

Here's what that interest looks like after one year:

Not bad for a zero-risk move that takes five minutes to set up.

Why now is the perfect time to make the switch

Honestly, any time is a good time to earn more on your savings.

But, given that interest rates might be cut here shortly in 2025, the awesome APYs we've been enjoying for years could start to fade out.

Here's why now is a great time to move your cash to an HYSA:

• Rates are still high. We're in a sweet spot where many HYSAs are offering rates near or around 4.00% APY. That's an awesome rate for a risk-free account!
• Inflation is still a concern. Earning more interest helps your money stay ahead of rising costs.
• No fees = more money for you. Unlike traditional banks, most HYSAs skip the annoying monthly charges.

There's not much to lose with an HYSA… but a whole lot to gain. Even for folks who aren't retired and hanging onto a lot of cash, it's a great account to let your money grow passively over time. In fact, I personally earned almost $800 in interest last year with my HYSA.

Your cash deserves better

You don't have to ditch your current checking account or leave your bank completely. You can still use it for daily spending.

But opening a separate HYSA just for storing extra cash can help you earn a whole lot more. It could mean hundreds -- or even thousands -- in extra interest over the course of a year.

So go ahead. Give your savings a well-deserved raise. Compare the top HYSAs today and open one that fits your goals.

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I've been writing about personal finance for years, but I'll admit that I ignored my own advice about where to park my cash.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

For the longest time, I let my emergency fund sit in a big-bank savings account earning next to nothing. It felt "safe," but I was losing out on real money every month.

Then I opened a high-yield savings account (HYSA). I wish I had done it sooner.

The simple move that made me richer

I moved my emergency fund -- about $15,000 at the time -- from an account paying 0.01% interest to a high-yield savings account earning over 4.00%.

That's the difference between earning $1.50 a year and earning over $600 a year, just for letting my money sit there. It was the easiest raise I've ever given myself. No stress, no risk, and no complicated investing. Just better interest.

Why it felt like a mindset shift

Seeing that interest roll in every month changed how I thought about money. It made saving feel rewarding instead of like a chore.

I also found myself wanting to keep a healthy emergency fund because it was actually working for me, not just gathering digital dust.

This small shift built momentum; first with the emergency fund, then with sinking funds for travel and home repairs, all earning interest while I planned bigger financial moves.

Why now is a great time

Interest rates are still relatively high, which means you can find HYSAs offering 4% to 5% at many online banks.

That won't last forever. Banks tend to drop rates when the Federal Reserve does, and experts think that could happen later this year.

If you're sitting on cash in a checking or low-rate savings account, you could be losing hundreds -- or even thousands -- over time.

Don't keep waiting. Check out our list of best high-yield savings accounts to put your money to work today.

Your move

It doesn't take long to open a high-yield savings account, and many have no monthly fees or minimum balance requirements.

If you've been putting this off, let this be the moment you change that. It changed how I manage my money, and it can do the same for you.

Start earning more on your savings today.

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Somehow I blinked, and it's July?! That means we're halfway through 2025.

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If your finances haven't exactly been front and center lately (relatable), now's the perfect time to check in. You probably don't need an overhaul -- just a few smart tweaks to set yourself up for a stronger second half of the year.

Here are three slip-ups I see all the time, and a few ways I've personally turned them into upgrades.

1. Letting your savings sit in a low-interest account

I used to keep most of my savings in a big-name bank that barely paid any interest. My balance sat there earning less than a dollar a month.

Eventually, I switched to a high-yield savings account, and the difference was immediate. My money started earning meaningful interest, and I didn't have to change anything else.

2. Overpaying for car insurance

Car insurance rates are up this year, but that doesn't mean you're stuck paying more. I recently helped a friend compare quotes, and she ended up saving over $400 annually -- with the same level of coverage -- just by switching providers.

When it comes to your insurance company, loyalty rarely pays off. It's worth shopping around even if you think you're getting a good deal.

It takes five minutes and could put a chunk of change back into your budget for road trips, concerts, or literally anything more fun than auto insurance. Take a look at what other providers are offering -- you might be surprised.

3. Earning nothing (or paying too much) on your credit card

If your credit card isn't doing anything for you, you're probably missing out.

Whether it's cash back, travel points, or a long 0% intro APR, there are cards that reward you just for using them. And many come with welcome bonuses that are worth hundreds of dollars.

If your current card isn't pulling its weight, it's time for an upgrade. Check out our top credit card offers and find one that works harder for you.

Small moves, big payoff

These aren't major money moves -- just low-effort upgrades that can add up fast. And the sooner you make them, the more time they have to work in your favor.

So here's your friendly nudge: Do a quick midyear money check-in today. Your future self (and your December bank account) will thank you.

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I've always thought of certificates of deposit (CDs) as a decent mid-term play. The rates are predictable. The risk is low. But they've never really clicked with me.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

That's because CDs don't do much for two key goals:

• If I need short-term flexibility, a CD just ties my money up.
• If I want long-term growth, CDs get left in the dust by higher investing returns.

Even now, with some CDs offering 4.00% APY, I'd rather keep my cash in accounts that give me more control, or grow it in assets with higher upside.

Here's where I'd put my money instead.

Short term: A high-yield savings account

If you're saving for something in the next year or two (like a vacation or new car) your money needs to stay safe, liquid, and ideally earn big interest.

That's where high-yield savings accounts (HYSAs) shine. Some top online banks are offering near 4.00% APYs, and your money remains fully accessible.

Here are of the top perks of HYSAs:

• No early withdrawal penalties
• FDIC insurance on balances (up to $250,000 per depositor, per bank)
• Many online banks offer no fees, no minimum balances, and unlimited transfers.

I've personally kept my ~$25,000 emergency fund in an HYSA earning above 4.00% for the last couple years. And it's really paying off. I get nearly the same interest rate as some of the best 1-year CDs, but without any lockup.

Check out today's top HYSA rates and start earning more on your cash savings.

Long term: Low-cost index funds

CDs and savings accounts protect your money. But if you want your money to grow over the long term, investing is where the real power is.

Over the past 30 years, the S&P 500 has returned an average of about 10% annually. That's more than double today's top savings account and CD rates.

And when compounded over many years, the difference is mind-blowing.

Here's an example of how $10,000 would grow over decades at either a 4% or 10% average rate of return:

Personally, most of my long-term savings are in index funds. I've always seen index funds as one of the most reliable ways to build wealth over time, especially low-cost funds that spread your money across hundreds of companies (like S&P 500 funds).

If you're already contributing to a 401(k) plan, chances are you're investing in a mix of highly-diversified mutual funds already. But if you want more flexibility or investing options outside of retirement accounts, opening a regular brokerage account is a great move.

I don't try to stock pick or outperform the market. I'm happy taking an average return and letting time and compound interest grow my wealth.

The bottom line

CDs aren't useless. But they only suit a narrow scope of financial goals.

If you need short-term access and flexibility, high-yield savings accounts offer similar 4.00% returns with way less restriction.

And for long-term goals, low-cost index funds have a proven track record of building serious wealth over time.

Want to get in on the stock market's high returns? Check out our list of the best stock brokers to open an account and start investing today.

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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.

I used to be naive about earning interest. For over a decade, I parked all my cash in a basic checking account, earning pennies.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

That one lazy habit probably cost me over $10,000 in missed growth throughout my 20s and 30s. Ouch!

But a few years ago, I wisened up and learned about high-yield savings accounts (HYSAs). I opened one online and last year alone, I earned $798 in interest.

Here's what you need to know about high-yield accounts, and how to 50x your earning rate.

Why your checking account is probably letting you down

Checking accounts are built for spending -- not saving. The problem is that most people use them for both.

Right now, the average checking account pays just 0.07% APY. That means $10,000 sitting there all year earns you just $7 in interest. Not even enough to buy a combo meal at In-N-Out Burger.

Meanwhile, some high-yield savings accounts (HYSAs) are paying over 4.00% APY. Same $10,000, but now you're earning $400 a year in interest.

That's over 50x the interest just for moving your money to a better spot.

HYSAs are just as safe and accessible

Here's what most people don't realize (I didn't either at first): High-yield savings accounts work basically the same as regular savings accounts -- except they actually pay you meaningful interest.

You can move money in and out easily. Most HYSAs link directly to your checking account (even at a different bank), so transfers are quick and painless.

And they're just as safe. Most HYSAs are FDIC insured up to $250,000, meaning your money is protected even if the bank goes under.

Even better, thanks to modern fintech banks, many of the top online HYSAs come with:

• No monthly fees
• No minimum balance requirements
• Unlimited transfers
• Clean mobile apps and fast support

The setup I use

I didn't ditch my old bank entirely. I still use it for checking accounts and my day-to-day banking.

But I keep as little cash as possible there. All my cash savings (emergency fund, short-term savings for travel, etc) are all stored in my HYSA.

Here's my current setup:

• Checking account: I keep about one month of expenses for bills and spending. This is where I get my paycheck deposited and pay all my bills.
• HYSA: I keep three to six months of expenses for emergencies and other short-term goals. This all earns 4.00% APY (about $3 in interest per day with my current balance!)

My accounts at both banks are connected to each other for easy transfers. It gives me the flexibility to move money around however I want while also earning a high interest rate.

How to switch (or add) a high-yield savings account

Opening an HYSA is super easy. It takes about 10 minutes online.

Here's how to do it:

1. Shop around for an account offering a high APY. Here's our list of top HYSA's right now, with rates up to 4.40% APY.
2. Open the account with a small deposit (most have no fees or minimums).
3. Link it to your current checking so you can transfer funds easily.
4. Move your savings. Feel free to start slow, but once you see how much interest you're earning, you'll probably move your entire cash pile into your new HYSA.
5. Automate any recurring deposits you want to grow.

Pro tip: Set a calendar reminder every six months to check your APY. If your rate drops or circumstances change, it might be time to re-evaluate.

Stop forfeiting free money

Don't let your money sit around doing nothing.

If you're earning close to 0% interest like I was for many years, you could be missing out on hundreds (or even thousands) of dollars every year in free, no-risk growth.

Opening a high-yield savings account is fast, easy, and makes your money more productive overnight. Compare all the top high-yield savings accounts here and start earning more today.

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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.

Right now, the average savings account pays just 0.38% APY. The average checking account is even lower, at 0.07% APY. That's less than a dollar a year in interest on a $200 balance.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

But some of today's top banks are offering 4.00% APY or more for high-yield accounts. I'm using one personally and earned $798 in interest last year alone. Oh yeah, and my bank has no fees, account minimums, or the clunky tech of old-school institutions.

If you've been with the same bank for two decades, you're probably leaving money (and modern features) on the table. Here's what you could gain by switching.

Earn up to 10x more interest

The biggest reason to ditch your outdated bank account is higher interest. Way higher.

Traditional banks are notoriously stingy when it comes to paying interest. Meanwhile, modern online banks are fighting for your business by offering high-yield savings accounts (HYSA) with rates of 4.00% APY or more.

This can mean earning a LOT more money on your savings. Here's the difference interest can make with a $10,000 balance over the course of a year:

It's the same money. Just parked in a better place. And earning over 10X the national average savings rate.

And before you ask -- yes, online banks are just as secure as traditional banks. They're FDIC insured with protection up to $250,000 per depositor.

By the way, you don't need to completely switch everything to a new bank. Personally, I still keep my everyday checking with a big bank (Chase). But all my cash reserves are over at an online HYSA with a top rate.

Goodbye maintenance and junk fees

On average, top U.S. banks charge $13.95 per month in checking account fees, according to a February 2025 MoneyRates report.

That's over $165 a year, just for the privilege of having an account. No thanks!

Most fintech banks are built differently. They pride themselves on charging no fees and having no account minimums. Particularly for online banks… Their lean physical footprint and modern applications means they have less overhead to cover.

Here are a few things you can look forward to with many online fintech banks.

• $0 monthly maintenance fees
• $0 overdraft fees
• No minimum balance requirements
• Free ATM access or fee reimbursements

Some even refund ATM charges from other banks -- which means you can access your cash without hunting for the "right" ATM.

In other words, you keep more of your own money. And that's the whole point, right?

Enjoy faster apps and smarter tools

To their credit, I will say that big bank mobile apps are starting to get less "clunky." They handle the banking basics just fine, like mobile deposits and money transfers.

But fintech banks take it even further. Built for the app generation, they typically come with faster interfaces, user friendly designs, real-time alerts, and slicker user experiences overall. It's modern banking that actually feels modern.

It's time to switch (or at least explore alternatives)

You don't have to cut ties with your old bank completely. I didn't. I use a hybrid setup, with a couple accounts at a big-name bank for convenience, and a few higher-yield accounts at online banks to make the most of my cash savings.

Even just shifting part of your cash to a better account can make a big difference. So don't settle. Start saving more today with a high-yield, online bank that pays YOU for being a customer.

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You've probably seen the headlines: slowing growth, sticky inflation, and whispers about interest rate movement. The big question keeps coming up: Are we headed for a recession?

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Nobody knows for sure, but here's what I do know after years of writing about personal finance: Waiting until you know we're in a recession is waiting too long. The smartest move is to recession-proof your finances before things hit the fan.

Here's what I'm doing, and what I recommend to anyone trying to stay one step ahead.

Build (or rebuild) your emergency fund

If the economy slows down and layoffs start picking up, having three to six months of expenses in a high-yield savings account (HYSA) gives you flexibility and peace of mind.

• Look for an HYSA paying around 4.00% APY. There are plenty right now.
• Keep your emergency fund totally separate from your checking or investing accounts.
• Even $1,000 is a good start if you're rebuilding from scratch.

Cut back on high-interest debt

Credit card APRs are often over 20%. If a recession hits and your income drops, that kind of debt becomes a massive burden fast.

What to do now:

• Pay down variable-rate debt aggressively
• Consider a 0% intro APR balance transfer card if you need breathing room
• Skip extra investing until your high-interest balances are under control

Some of the best recession protection is just not owing money to a credit card company. Simple as that. You can get nearly two years interest-free with some of the best balance transfer credit cards -- check out our list here.

Don't panic-sell your investments

Market dips are scary. But history shows that trying to time the bottom usually backfires. Long-term investors who stay the course tend to come out ahead.

If you're investing for retirement, keep contributing. If you've got short-term goals, like buying a house in a year or two, that money shouldn't be in the market anyway. Historically, the S&P 500 returns about 10% annually. Short-term drops are just part of the ride.

And there's never a bad time to start investing. Pick one of the best online brokers and start thinking about your retirement.

Diversify your income if you can

One income stream feels fine, until it's not. Even a small side hustle or freelance gig can give you financial stability when the economy wobbles.

Some ideas to explore:

• Remote freelance platforms like Upwork or Fiverr
• Part-time consulting or tutoring
• Selling a product or service locally (or online)

You don't need to launch a full-scale business. You just need enough to give yourself options if your main paycheck becomes less reliable.

Recession or not, it pays to stay ready

We might avoid a full-blown recession. Or we might not. Either way, the steps above put you in a better position no matter what happens. Building cash, cutting risk, and keeping your cool can help you ride out whatever the economy throws our way.

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The Federal Reserve kept interest rates steady in its June meeting, which means CD rates aren't likely to drop overnight -- but they may start slipping soon.

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Many experts still expect the Fed to lower rates later this year. If that happens, banks could begin cutting CD yields in anticipation. So if you've been thinking about locking in a long-term CD, this might be your best window.

Learn why (and how) to open a 5-year CD before rates start to fall.

Why a 5-year CD makes sense right now

Historically, CD rates tend to follow the Fed's lead. When the Fed lowers its benchmark rate, banks usually reduce CD rates as well -- sometimes even before the cut happens.

Case in point: even with no rate cut yet, some banks have already started trimming their CD yields. But right now, top 5-year CD rates are still among the best we've seen in years, with some banks currently offering around 3.50%.

Opening a 5-year CD at these rates means you can lock in a solid return even if the market shifts. That gives you more certainty than something like a high-yield savings account, which can change rates at any time.

And with a 5-year CD, you'll get that guaranteed return for a whole half-decade.

Who should open a CD?

A CD isn't right for everyone. But it can be a great fit if you have money you don't need to touch and want a predictable return.

You should consider a CD if:

• You have short- to medium-term savings goals. A CD can be perfect for saving for a car, vacation, or wedding.
• You want a guaranteed return. A fixed rate shields your savings from drops in the market.
• You have an emergency fund already. CDs charge penalties for early withdrawal, so they're best for money you can leave untouched.

CDs are also FDIC insured up to $250,000, meaning your money's protected just as it would be in a savings account.

Don't wait -- open a CD today

CD rates haven't significantly dropped yet -- but that could change fast if the Fed signals cuts.

By opening a 5-year CD now, you can secure a strong return and protect yourself from future rate drops for years to come.

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Certificate of deposit (CD) rates are holding steady above 4.00% for some terms, and that's got a lot of savers asking the same question: Should I lock one in?

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There's no denying that 4.50% on a federally-insured CD looks good in this market. Especially with the Fed holding rates steady and inflation slowly cooling off. But CDs aren't one-size-fits-all, and jumping in too fast could end up costing you.

Here are four clear signs a CD might not be the right move for you right now.

1. You might need your cash before the CD matures

The biggest tradeoff with a CD is access. Once you lock in, that money is off-limits unless you're willing to pay an early withdrawal penalty. Depending on the bank, that could cost you several months of interest or wipe out all of your earnings.

If there's any chance you'll need that money before the CD's term ends, you're probably better off with a high-yield savings account. Right now, top accounts are still offering over 4.00%, and you can pull money out anytime.

2. You're trying to "time" rates

A lot of savers are trying to lock in rates before the Fed make its first cut of the year. But guessing when that'll happen is just that: guessing.

Right now, markets are likely pricing in at least one rate cut before the end of the year. But timing is still uncertain, and locking in a 1-year CD today could mean you miss better opportunities down the line.

3. Your emergency fund isn't fully built

This one's simple. If you don't have at least three to six months of expenses saved in a liquid account, you probably shouldn't be tying up money in a CD.

Even the best APY won't help if you have to break the CD early. That's why it's smart to use high-yield savings for your safety net and only stash extra cash in a CD if you're sure you won't need it. If you need some help picking the right account, check out these top places for storing your emergency fund.

4. You're looking for long-term growth

CDs are safe, but they aren't meant to build wealth. If you're saving for something years away -- like buying a house or retirement -- you might want to look beyond CDs.

Depending on your risk tolerance, bond ETFs, Treasuries, or a balanced portfolio of stocks can offer better long-term potential. CDs give you certainty, but they can also limit upside if rates fall or the market moves in your favor.

Some good news: You've got options

If none of these red flags apply to you, CDs can absolutely make sense. But if you're not sure you can commit to locking up cash, or if you want to stay flexible in case rates shift, a top high-yield savings account is a smart alternative.

You'll earn nearly as much as a CD -- without sacrificing access or flexibility.

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Most people think you need a complicated budget or the latest app to stay out of debt. Warren Buffett does the exact opposite.

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The billionaire investor has stuck to the same basic rule for decades, and it's one that almost anyone can follow, even if you're not great with money. He simply avoids spending money he doesn't already have.

Seriously, that's it.

Buffett's habit: Only spend physical cash

Buffett has long preferred using actual cash for everyday purchases. Not credit. Not even debit. Just cash.

Why? Because it forces you to feel every dollar that leaves your hand. When you pay with plastic or tap your phone, it's easy to disconnect from the money. But when you carry around a set amount of cash, you naturally become more mindful.

That one habit has helped him avoid personal debt his entire life. He's even said, "If I owe anybody anything, I want to get it paid."

Why most people don't do this -- and why it still works

Let's be real. Most people don't use cash anymore. Tap-to-pay, buy now, pay later, Venmo -- it's frictionless. And that's the problem.

According to a recent survey from the Federal Reserve, nearly 50% of Americans live paycheck to paycheck. And for many, credit cards fill the gap. But that leads to a cycle of interest charges, minimum payments, and financial stress.

Want to go further? Pair Buffett's habit with a high-yield savings account

Here's something I've learned from years of writing about personal finance: Small behavior changes matter a lot more when your money has a safe, steady place to grow.

If you're committing to a cash-based system to avoid debt, the next smart move is to stash your extra savings in a high-yield savings account (HYSA). Top accounts right now are offering up to 4.40% APY, which is more than 10 times the national average.

This one habit could change your financial future

Buffett doesn't live on a budget spreadsheet. He lives by a mindset: Don't spend what you don't have.

It's a low-effort way to stay debt-free, and it's just as effective now as it was when he started decades ago. If you're tired of feeling like money is always tight, this one change could help you take back control -- without sacrificing the things you care about most.

And if you're ready to put your extra savings to work, a high-yield account is one of the easiest wins out there.

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If you had to cover three months of bills without a paycheck, could you?

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That's the real reason financial experts point to $19,800 as a smart savings target. It's based on one simple idea: The average U.S. household spends about $6,600 per month, according to recent data from the Bureau of Labor Statistics. Multiply that by three, and you've got a bare-minimum emergency fund.

And yet, most Americans don't even come close.

Most households aren't ready for a crisis

A recent Fortune survey found that just 41% of Americans could cover a $1,000 emergency using their savings. That's not even enough for a major car repair, let alone a job loss or unexpected medical bill.

It's not always a spending problem; it's often a strategy problem. Many people keep what little savings they do have in accounts earning basically nothing. Meanwhile, inflation keeps eating away at the value of their cash.

If you're serious about reaching that $19,800 target, where you keep your savings matters just as much as the amount you save.

Where to stash your emergency fund (Hint: not a checking account)

This is where high-yield savings accounts (HYSAs) come in.

Top online banks are currently offering over 4.25% APY, with no monthly fees or hoops to jump through. That's a huge upgrade over the national average savings rate, which is still stuck below 0.50%.

Let's do the math:

If you're holding $10,000 in a traditional bank account at 0.01% APY, you'd earn just $1 in a year.

But at 4.25% APY? You'd earn $425 -- with no extra effort.

These accounts are federally insured, totally liquid, and built for exactly this kind of savings. You're not locking your money away in a CD or taking on stock market risk. You're just earning more while staying flexible.

How to build up $19,800 -- even if you're starting small

If that number feels out of reach, don't panic. You don't have to save it all at once. The key is consistency.

Try this:

• Start by automating $50 to $100 a week into a high-yield account.
• Use windfalls like tax refunds or bonuses to boost your balance.
• Keep it separate from your everyday spending so you're not tempted to dip in.

Once you build momentum, saving gets easier. And watching your money grow faster in a high-yield account can actually be motivating. You'll feel the progress.

Savings isn't just a number -- it's peace of mind

Having $19,800 in the bank won't make you rich. But it might be the difference between staying afloat or going into debt when life throws you a curveball.

Most people don't have that cushion. But that also means most people aren't earning interest on their money, and that's something you can change today.

If you want a savings strategy that actually works, start with a better account. You'll hit your target faster, and you won't have to settle for earning pennies on your hard-earned cash.

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Top 6-month CDs are still paying around 4.00% APY as of right now. But that may not last much longer. In its June meeting, the Federal Reserve held interest rates steady, with the next policy decision expected in late July.

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Still, many banks have already started quietly trimming CD and savings rates in anticipation of potential cuts later this year. Even without a formal Fed move, yields could continue to slip.

If you're thinking about locking in a short-term CD, now may be your best shot before rates trend lower.

Why a 6-month CD could be the sweet spot

Short-term CDs let you lock in a fixed return, but still give you access to your cash relatively soon.

It's a step up from a high-yield savings account (which can change rates anytime) but doesn't require tying up your money for years.

That's especially helpful in uncertain markets or if you think you'll need your funds soon.

Right now, some of the best CD rates are up to 4.00% APY on 6-month terms. That's about $200 in interest on a $10,000 deposit, and you'd get your cash back before Christmas!

Consider CD laddering with different terms

If you're working with a larger balance, you might want to spread your cash across multiple CDs with different timeframes.

This strategy is also called CD laddering. It's the perfect way for people to lock in top rates, and stagger maturity dates so they have regular access to their cash.

For example, here's a simple CD ladder spreading $40,000 across four CDs with a $10,000 in each:

Over a two-year period, you could earn $1,815 in interest, while still having access to your initial $10,000 deposits every six months.

By the way, if the Fed begins cutting rates (as is expected to happen before the end of the year), it's likely that all CD terms will drop -- not just the short-term ones. So no matter the CD term you're interested in, it might be smart to lock in your rate sooner rather than later.

When a CD might not be the right fit

CDs are great for money you won't need to touch. But if there's any chance you'll need access before the term is up, they can be a bit restrictive.

Most banks charge a penalty for withdrawing early from CDs. Usually, the fee is forfeiting anywhere from three months to the entire amount of interest earned.

So if flexibility is a priority, a high-yield savings account (HYSA) could be the better fit.

HYSAs are also offering around 4.00% APY right now, but they are exposed to instant rate changes whenever banks want to implement them.

If you value access over a fixed return, a HYSA may be the safer move. (I personally fall into this camp).

Final thoughts

Opening a 6-month CD now could be a smart way to lock in a solid short-term return before rates decline. It's safe, predictable, and doesn't tie up your money for too long.

And with the Fed hinting at rate cuts as early as this fall, this might be your last window to capture top-tier CD yields. Compare today's best 6-month CD rates and start earning more on your cash.

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The Federal Reserve is meeting next week, and while no immediate rate change is expected, there's a bigger question on the horizon: What comes next?

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If the Fed starts preparing markets for rate cuts later this year, it could mean that CD rates will fall as well. CD rates have been relatively high for the last few years, but that won't last forever. In fact, they could start dropping soon.

Here's why you may want to get ahead of a possible rate cut by locking in your CD rate now.

Why the Fed's meeting matters

As of now, futures traders see a 99% chance that the Fed will keep rates unchanged at its June 17-18 meeting, per the CME FedWatch Tool.

But that doesn't mean cuts definitely aren't on the horizon. If Fed officials mention planned rate cuts for later this year, banks could react by trimming their CD rates in advance.

In fact, some have already started -- which is why now may be the time to act.

CD rates are still high -- for now

CD rates are closely tied to the Fed's benchmark rate. As that rate rises or falls, CD yields tend to follow. And right now, top CD rates are still near multiyear highs, with APYs as high as 4.60%.

Once you open your CD, your return is locked in for the duration of the term, which is the main advantage of a CD. That's why you'll want to lock in a high CD rate while you still can.

CD basics: How they work and how to open one

Put simply, a certificate of deposit (CD) is a type of savings account that locks in your money for a set period, usually anywhere from a few months to a few years, in exchange for a fixed interest rate.

You can open one in just a few simple steps:

1. Choose a term. Common terms range from 6 months to 5 years. Pick one based on when you'll need the money.
2. Compare rates. Shop around for the best APYs. Online banks often offer higher rates than traditional banks.
3. Fund your CD. Most banks let you open a CD via bank transfer or check. Minimum deposits vary by institution.
4. Make a plan for the maturity date. Once your CD matures, you can "renew" it by opening a CD with the same term (and a potentially different rate) or transfer the cash to a different account.

One popular strategy involves building a CD "ladder" -- splitting your money across different term lengths. This creates staggered maturity dates, so a portion of your money becomes available at regular intervals to provide flexibility.

You'll also want to avoid early withdrawals, which usually come with penalties that can reduce your overall return. Discipline is key.

Don't wait for rates to fall

There's a chance CD rates hold steady through the summer. But if you wait too long, you could miss your chance to lock in a high yield. Some banks are already reducing CD offers based on what they expect the Fed to do.

And while alternatives like high-yield savings accounts offer competitive returns, their rates are variable. If you're sitting on extra cash you don't need right away, putting it in a fixed-rate CD now could give you peace of mind.

Want to lock in a great rate while you still can? Compare top CDs and open one today.

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Most people stash their emergency savings in a high-yield savings account -- which is a solid idea. But my buddy stores his $60,000 in savings a different way.

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He built a CD ladder that pays him every month like a self-funded paycheck.

His logic is that if (when) something bad happens -- like losing his job -- he probably wouldn't need all $60,000 on day one. He'd just need a few grand each month to cover bills.

So he split his emergency fund into 12 $5,000 CDs, each with a 12-month term, staggered monthly. That way, one CD matures every month, and he can roll it over or cash it out as needed.

It's a simple move, but it locks in a higher interest rate for most of his cash than a savings account could.

The setup: 12 CDs, 12-month terms, $5,000 each

Here's the gist of how his CD laddering strategy was built:

• He split $60,000 into 12 separate CDs, each with a $5,000 deposit.
• He bought all the CDs on a rolling monthly basis.
• That means one CD matures each month, freeing up $5,000 (plus interest).
• When a CD matures, he simply rolls it into a new 12-month CD at the current best rate. (Or he can use it in case of emergency.)

It's quite genius, actually. He has regular access to his cash, pays no penalties or fees, and earns the best available APYs for 1-year CDs every month.

Want to copy this setup?

So how much does he earn?

Let's do the math based on the best 1-year CD rates right now -- we'll use a 4.00% APY as a rough average.

Each $5,000 CD earns around $200 per year, or roughly $16.67 per month.

Multiply that by 12 CDs, and he's bringing in around $200 per month in passive income, or $2,400 per year.

Truth be told, he began this ladder strategy a couple years ago when rates were even higher. So he's probably earning even more because some of his older CDs are probably still paying higher rates.

That's the beauty of laddering, and why it's important to lock in good rates before they drop. The Federal Reserve is meeting again on June 17-18, and if they decide to cut rates, today's top CD offers could disappear fast.

Is CD laddering right for you?

I'll be honest -- personally, I don't keep my own emergency fund in a CD ladder. I use a high-yield savings account.

I know CDs might pay me a tiny bit more in interest. But I feel better knowing I can access all of my cash at any moment if I need to. It's a security thing, I guess.

That said, CD laddering makes a ton of sense for people who want to earn more on their cash without giving up all their access. Especially if you've got a large emergency fund or money earmarked for a goal that's still a few years out (like buying a house).

If you're sitting on a chunk of cash and want to earn more without taking on risk, a CD ladder could be your next smart move. It's low-effort and low-risk, and you can customize it however you want.

Start by exploring the top CD rates available right now -- our team updates the list regularly so you can lock in a great APY before rates drop.

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If you've been meaning to move your cash into a high-yield account or CD, this is your wake-up call. I've been writing about banks for years now and know how many people are just leaving money on the table.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

We're still in a golden window for savers, but it's shrinking fast. Top high-yield savings accounts are paying up to about 5.00% APY, and 1-year CDs are hitting 4.25% or higher at some banks. These are the kinds of rates we haven't seen in two decades. And once the Fed makes its next move, they'll start to disappear.

Why this matters right now

The Federal Reserve has held interest rates steady for most of 2024 and into 2025. But the signals are clear -- rate cuts are likely coming later this year.

Once the Fed starts cutting, banks won't waste time lowering what they pay on savings accounts. That means this moment where savers hold the upper hand won't last.

You don't want to look back six months from now and wish you had moved sooner.

CDs vs. savings accounts: Which should you pick?

If you don't need instant access to your cash, locking in a CD now could protect your yield longer. CDs offer guaranteed returns for anywhere from three months to as long as five or even 10 years, shielding you from the potential of falling rates.

On the flip side, high-yield savings accounts give you flexibility, and the best ones still offer impressive APYs for now. If the Fed delays its cuts, you can still benefit longer term.

Most people wait too long -- don't be one of them

It's easy to miss windows like this because the shift doesn't happen all at once. Rates dip a little, then a little more, and by the time you notice, you've lost your edge.

Banks don't send out alerts when they slash their savings rates. They just quietly do it.

If you've got extra cash sitting in a checking account earning next to nothing, that's dead weight. Even a few thousand dollars moved into a high-yield account now could mean real money by year-end without taking on any risk.

The hardest part is just doing it. But once it's done, your money's finally pulling its weight.

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Right now, I have about $25,000 sitting in a high-yield savings account earning 4.50% interest. If I lost my income tomorrow, that cash pile would help cover my family's bills, groceries, and other expenses without going into debt.

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But is it enough to protect me in a recession? What's the ideal savings number to help us ride out a lengthy rough patch?

A six-month buffer is ideal

If you lost your job today, how long would it take to find another one?

In a strong economy, it could be fairly quick. You might land a new gig within a month or two, or pick up some freelance or side work to keep money flowing.

But during a recession, when layoffs spike and hiring slows, finding work could take much longer.

In fact, during the 2007-2009 Great Recession, the median unemployment period was 25.2 weeks (nearly six months), according to the Bureau of Labor Statistics. And when jobs are scarce, even gig work can dry up.

That's why personal finance expert Robert Brokamp recommends folks lean toward a larger savings cushion:

Basically, saving six months of expenses gives you more time to find a job if the economy goes south.

Here's what six months of savings looks like at different spending levels:

Where to keep your emergency savings

This part matters more than most people think.

Keeping your emergency fund in a safe place that's easy to access is important. But you also want to earn maximum interest on your cash.

That's why a high-yield savings account (HYSA) is the best spot. HYSAs earn about 10 times the national average APY. And today's top accounts are offering rates up to 4.40%.

HYSAs are also FDIC insured, up to $250,000 per depositor. So you can relax knowing your money is federally protected, even if the bank you're with goes out of business.

A barebones budget can help

My wife and I usually spend about $6,000 to $7,000 per month. So, at our normal spending rate, our $25,000 emergency fund would last us around three to four months.

But here's the thing. If I actually lost my job and couldn't find work right away, we could tighten up our spending quite a bit. We could pause travel, cut subscriptions, and put a temporary freeze on non-essentials. That would shrink our monthly spending significantly, maybe to $4,500 per month. Our emergency fund would last us closer to six months then.

This stripped-down version of our expenses is called a barebones budget. It's a super useful tool to have in your back pocket.

Pro tip: Some banks offer built-in budgeting tools that help you track your spending and flag unnecessary expenses that can be cut fast.

Tips to build up your recession fund faster

If you don't have a full six months of savings currently, here are a few moves that can get you there faster:

1. Set up automatic transfers. Each payday, move a bit of money from your checking account into savings. Then you'll be stashing money without even thinking about it.
2. Save any windfalls. Bonuses, tax refunds, or birthday cash from grandma…put it all right toward your savings goal.
3. Cut back temporarily. Skipping one dinner out per week could save you $200 a month or more. Believe me, the sacrifice will be worth it when you're sitting on a full emergency fund.
4. Get the highest APY you can. Park your savings in an HYSA with one of the best available APYs. All that interest helps your fund grow faster.

Progress feels slow at first, but momentum builds fast.

Recessions are unpredictable. Having a solid cash cushion means you don't need to panic-sell investments or swipe a credit card when life gets rocky.

So whether your number is $5,000 or $50,000, start stacking that fund today. The peace of mind is worth every penny.

No one ever regrets having extra cash in a crisis. Explore the top high-yield savings accounts today and start earning up to 4.40% APY, with zero risk and full liquidity.

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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.Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.