Wealthy Americans are moving cash out of checking and savings accounts. Here’s what they’re doing with it

Core Insights - The article discusses the shift of households towards higher-yield investment options due to stagnant incomes and rising costs, leading to a decline in consumer spending [2][4][5] Group 1: Savings Accounts and Interest Rates - SoFi offers a competitive 3.60% APY on accounts, with new clients receiving a 0.70% boost for the first six months, totaling 4.30%, significantly higher than the national average [1] - Traditional savings accounts are becoming less appealing as inflation remains above the target rate, prompting consumers to seek better returns [2][3] Group 2: Investment Alternatives - Higher-income households are reallocating cash from regular bank accounts to higher-yield options like money market funds, brokerage accounts, and certificates of deposit (CDs) [3][4] - Certificates of deposit (CDs) are highlighted as valuable for locking in guaranteed rates, especially as interest rates decline [7] Group 3: Consumer Behavior and Economic Indicators - Consumer confidence has dropped to its lowest since April, reflecting economic anxiety and contributing to reduced spending [5] - A report indicates that while consumer spending saw a slight increase, it remains sluggish compared to previous months, indicating a cautious approach among consumers [4] Group 4: Financial Products and Services - Raisin provides access to high-yield and no-penalty CDs from top U.S. banks, catering to those seeking flexibility and higher returns [8][9] - Money market accounts (MMAs) and money market funds (MMFs) are presented as alternatives, with MMFs investing in low-risk securities but lacking FDIC insurance [10][11] Group 5: Investment Strategies - The article emphasizes the importance of aligning investment choices with financial goals, risk tolerance, and liquidity needs, suggesting various products for different purposes [20][21][22]