4 Reasons You Should Actually Pull From Your Savings Account
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I've built up a pretty large high-yield savings account (HYSA) over the years and even coached friends to do the same. But the more financially savvy I become the more I realize sometimes the smartest thing you can do with your savings is… use it.
Letting your money sit and build up forever feels safe. But the goal isn't to hoard cash -- it's to make smart moves with your money when the timing's right.
Here are four situations when dipping into your savings might actually make sense.
1. When inflation is silently eating your cash
Right now, U.S. inflation is running about 3.0% year over year, meaning the average price of everyday stuff is roughly 3% higher than it was a year ago. That's not runaway inflation -- but it is higher than the Federal Reserve's 2% target.
If inflation starts to rise and your APY starts to drop, it can create a sneaky problem. Even with a top high-yield savings account earning 3.00% or more, you could still be losing purchasing power without realizing it.
Let's say inflation runs hot at 4.2%, and your HYSA is earning 3.50% APY. That's a real loss of 0.70% on your money each year. And the higher inflation climbs (or the more savings you're sitting on) the more it stings.
Cash is important for short-term needs. But if you're holding onto more than you realistically need, you could shift some of that toward long-term investing, CDs, or even I-bonds. Anything that helps you outpace inflation.
A great all-in-one tool is SoFi Checking and Savings (Member FDIC), with a competitive annual percentage yield (APY) on savings and no account fees. Check out our full SoFi Checking and Savings (Member FDIC) review to learn more.
SoFi Checking and Savings
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Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
- Competitive APY on both Savings and Checking
- No monthly account fee
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- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
2. When you can pay off high-interest debt
If you've got high-interest credit card balances, personal loans, or even a lingering auto loan at 7% or more, pulling from savings to pay them off could instantly boost your financial position.
Yes, it's tempting to keep that cash cushion untouched. But if your debt is draining hundreds in interest every month, it's costing you more than your savings will ever earn in a basic account.
One caveat: Make sure you leave yourself some emergency reserves (maybe one to two months of expenses) so you don't run the risk of going back into debt if an emergency pops up.
3. When you're financing a large purchase
Need a new fridge? A last-minute flight to a family wedding? Or just finally ready to replace that laptop with a cracked screen?
You could swipe a 0% intro APR card, and that's a great option if you've got a solid payoff plan. But if you've got the cash sitting in your HYSA, paying upfront can be cleaner, faster, and less mentally draining.
It usually works out better to avoid extra monthly payments or interest traps. Especially when you've already saved up for it.
4. When building wealth long term
If you've got your emergency fund squared away and your short-term expenses covered, parking extra cash in a savings account might actually cost you growth over time.
Take this example: If you invest $10,000 in an S&P 500 index fund and it earns the historical average return of 10% annually, after 20 years you'd end up with more than $67,000.
Even if future returns are a little lower, the long-term math still beats the 3.00% to 4.00% APY you'd get from most high-yield savings accounts.
Of course, the market goes up and down. And you shouldn't invest money you might need soon. But if you're looking 10+ years out, investing in a brokerage account gives your dollars way more room to grow than any savings account ever could.
The bottom line
Saving money is powerful. But so is knowing when to use that money to your advantage.
Whether it's escaping debt, covering a smart purchase, or investing for the long haul -- your savings can open doors if you let it.
And for the cash you absolutely need to keep in savings, make sure it's working just as hard. See today's top high-yield savings accounts with the best APYs available.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.