{"id":16486,"date":"2025-06-10T20:13:37","date_gmt":"2025-06-10T20:13:37","guid":{"rendered":"https:\/\/finderica.com\/?p=16486"},"modified":"2025-06-10T20:13:37","modified_gmt":"2025-06-10T20:13:37","slug":"where-to-park-cash-if-youre-worried-about-the-stock-market","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=16486","title":{"rendered":"Where to Park Cash if You\u2019re Worried about the Stock Market"},"content":{"rendered":"
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The investing information provided on this page is for educational purposes only. SS, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.<\/span><\/span><\/span><\/p>\n<\/div>\n<\/div>\n

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In recent weeks, 44% of Americans in households making $125,000 or more say they\u2019ve put more cash aside to cover future expenses. That\u2019s according to the Conference Board\u2019s May Consumer Confidence report. <\/span><\/p>\n<\/div>\n

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But are they investing it?<\/span><\/p>\n<\/div>\n

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\u201cKeeping money in cash forever isn\u2019t a plan,\u201d says Rebecca Palmer, a certified financial planner in Washington, D.C., and head of guidance for financial planning platform Fruitful. <\/span><\/p>\n<\/div>\n

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\u201cIt\u2019s actually postponing a plan,\u201d she says. <\/span><\/p>\n<\/div>\n

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More than a third (37.7%) of consumers expect stock prices to decline over the next 12 months, according to the report. That\u2019s a more optimistic number than April\u2019s 47.2%, but still higher than the 23.7% who expected a drop in January. <\/span><\/p>\n<\/div>\n

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\u201cThere\u2019s definitely a feeling of fear in the markets right now,\u201d Palmer says. \u201cA lot of people are feeling this, [and] it\u2019s OK.\u201d <\/span><\/p>\n<\/div>\n

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But she emphasizes that fear is a starting point, not a strategy.<\/span><\/p>\n<\/div>\n

Why are people nervous about the market?<\/span><\/h2>\n
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Turbulence has contributed to people\u2019s investing anxiety. According to some measures, the level of stock market volatility in April was at its highest point since 2020. <\/span><\/p>\n<\/div>\n

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Today\u2019s investors are also knee-deep in alarming headlines and social media doom, Palmer says. <\/span><\/p>\n<\/div>\n

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\u201cThey just have a lot more overwhelm to deal with than prior generations did, even if it\u2019s the same kind of market turbulence that happens,\u201d she says. <\/span><\/p>\n<\/div>\n

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But keeping money in a checking account, earning no interest (or in a pillowcase, you know who you are) can put you at a disadvantage. <\/span><\/p>\n<\/div>\n

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\u201cYou\u2019re losing money to <\/span>inflation<\/span>,\u201d Palmer says. <\/span><\/p>\n<\/div>\n

Where can you put your money?<\/span><\/h2>\n
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If the stock market is making you uneasy, or you\u2019re keeping money accessible for a <\/span>nearer-term goal<\/span>, here are a few places you can consider putting your cash to earn interest and stay ahead of rising consumer prices. <\/span><\/p>\n<\/div>\n

High-yield savings accounts <\/span><\/h3>\n<\/p>\n

Potential interest rate: 4%+<\/span><\/h4>\n
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High-yield savings accounts<\/span> offer higher interest than savings accounts at traditional banks. Many banks offering these rates are online, and if they\u2019re FDIC-insured, they offer the same protections for your money as brick-and-mortar banks. <\/span><\/p>\n<\/div>\n

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\u201cIf you can get 4% on your savings, or even 3.8%, versus the point-nothing that one of the big brick-and-mortar banks are going to have, then take the better rate,\u201d says Cindy Sforza, a CFP with Lucidity Wealth Advisors in Brea, California.<\/span><\/p>\n<\/div>\n

Bank certificates of deposit (CDs) <\/span><\/h3>\n<\/p>\n

Potential interest rate: 4%+<\/span><\/h4>\n
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A <\/span>certificate of deposit (CD)<\/span> is a short-term savings account that allows you to lock in an interest rate for a certain time period \u2014 i.e., six to 12 months, with some terms as long as five years. <\/span><\/p>\n<\/div>\n

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The trade-off is that your money is also locked in; you\u2019ll pay a penalty if you withdraw early. <\/span><\/p>\n<\/div>\n

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When CD interest rates are higher than other savings accounts, this can be an easy way to earn some interest. But when CD interest rates match what you\u2019ll find in other short-term places, it may not be worth committing, Sforza says.<\/span><\/p>\n<\/div>\n

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\u201cFrankly, CD rates today are pretty close to what you can get in a high-yield savings account anyway, and a CD is a time commitment,\u201d Sforza says. \u201cJust do your rate shopping, and see if it makes sense to tie it up in a CD.\u201d <\/span><\/p>\n<\/div>\n

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Your goals will determine your choice \u2014 if you need to keep the money accessible, a CD might not be your top pick. <\/span><\/p>\n<\/div>\n

Money market accounts<\/span><\/h3>\n<\/p>\n

Potential interest rate: 3.5% – 4.4%<\/span><\/h4>\n
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A <\/span>money market account<\/span> is a savings account that offers a higher interest rate than traditional savings accounts, along with limited check-writing and debit card access to your funds. Money market rates may not match the best high-yield savings accounts, but HYSAs typically don\u2019t offer checks or debit cards. <\/span><\/p>\n<\/div>\n

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\u201c[Money market accounts] might give you a slightly lower rate on your money because it\u2019s a little bit more accessible versus the savings account,\u201d Sforza says. <\/span><\/p>\n<\/div>\n

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Treasury bills<\/span><\/h3>\n<\/p>\n

Potential interest rate: 4%+<\/span><\/h4>\n
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Treasury bills<\/span>, or T-bills, are government-backed investments with terms ranging from four weeks to one year. You can buy T-bills from a bank or brokerage, or invest directly through <\/span>T<\/span><\/a>reasuryDirect.gov<\/span><\/a>.<\/span><\/p>\n<\/div>\n

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\u201cIt\u2019s not the greatest website in the world,\u201d says John Bell, a CFP with Free State Financial Planning in Columbia, Maryland. <\/span><\/p>\n<\/div>\n

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But if you link your bank account to the site, he says, you have the option to invest in your T-bill of choice \u2014 and to have your money automatically reinvested when that T-bill matures, if desired.<\/span><\/p>\n<\/div>\n

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Another relatively new option available is a Treasury account, which is offered at some brokerage firms and does the work of buying T-bills for you, holding them to maturity, and then reinvesting the profits. <\/span><\/p>\n<\/div>\n

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(SS has a partnership with Atomic Treasury to offer a Treasury account. <\/span>Public<\/span>, an online broker SS reviews, also offers a Treasury account.)<\/span><\/p>\n<\/div>\n

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The advantage of Treasury bills, aside from their low risk and the fact that they\u2019re government-secured, is that the interest you earn is state and local tax-free. <\/span><\/p>\n<\/div>\n

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\u201cSo you\u2019re getting a little bit more yield there too, especially if you\u2019re in a high tax state,\u201d Bell says. <\/span><\/p>\n<\/div>\n

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Many brokers also offer a Treasury exchange-traded fund (ETF) or index fund that lets you invest in a basket of different Treasury products. <\/span><\/p>\n<\/div>\n

What\u2019s the bottom line?<\/span><\/h2>\n
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Although the methods above will earn interest, they\u2019re not the best solution for long-term savings and investing, Sforza says. If it\u2019s money you\u2019re not going to touch for at least five years, you\u2019re probably better off investing it, she says. <\/span><\/p>\n<\/div>\n

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\u201cYes, the market goes up and down, but that\u2019s your long-term money,\u201d she says. \u201cThat\u2019s not the money you\u2019re relying on tomorrow to pay your bills.\u201d <\/span><\/p>\n<\/div>\n

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If the idea of the stock market stresses you out, consider letting your portfolio do the work for you. Index funds, index ETFs and target-date retirement funds are an easy way to dip your toes in the investing waters, Sforza says. <\/span><\/p>\n<\/div>\n<\/div>\n

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The investing information provided on this page is for educational purposes only. SS, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. In recent weeks, 44% of Americans in households making $125,000 or more say they\u2019ve put more cash<\/p>\n","protected":false},"author":1,"featured_media":16487,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[195],"tags":[356,94,4850,222,4245,422],"class_list":{"0":"post-16486","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-cash","9":"tag-market","10":"tag-park","11":"tag-stock","12":"tag-worried","13":"tag-youre"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/16486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16486"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/16486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/16487"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}