Don't Keep Cash at Home. Here Are 3 Dead Simple Places to Put It Instead
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More than 20.6 million Americans keep cash hidden under a mattress, pillow, or bed, according to a recent Piere survey.
I get why. It feels safe, controlled, and even a little bit… fun!
But the truth is that cash slowly loses value over time, and the longer it sits at home the longer it earns nothing.
Here are three dead simple places to put that money instead for smarter storage.
1. Put it in a high-yield savings account
For any money you need immediate access to -- like emergency cash, quick travel money, or an unexpected new set of tires -- a high-yield savings account (HYSA) is the perfect spot.
Right now, the best HYSAs are paying around 3.50 to 4.00% APY (which is lightyears ahead of the big banks offering 0.01%). That means your cash earns real interest and helps protect its value from inflation.
I've been using an online HYSA for years, and not only is the experience super smooth, but my cash has earned me over $2,000 in interest thanks to high interest rates.
Better yet, most online banks have no fees, no minimums, full FDIC insurance up to $250,000, and you can access your funds anytime just like any regular bank account.
If you've got a few thousand saved up, a Barclays Tiered Savings account can put it to work at 3.85% APY -- no fees, no minimums, no hassle.
Barclays Tiered Savings
On Barclays' Secure Website.
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To earn a $200 bonus, new customers can open a savings account; deposit $30,000 or more within 30 days; and maintain at least that balance for 120 consecutive days. The bonus will be credited to your account within 60 days of meeting these requirements. Offer ends Dec. 31, 2025. Terms apply.
- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- No minimum deposit to open an account
- Balance requirement for maximum APY
- No ATM access
- No wire transfers (inbound or outbound)
- No branch access; online only
Barclays Tiered Savings rewards savers with a tiered APY structure, offering higher rates as your balance grows. No monthly fees and no minimum balance to open mean it's accessible to everyone, while unlimited transfers and withdrawals let you manage your savings your way. And now, you can take advantage of a special offer $200 bonus on top of your savings growth when you open a new account and deposit $30,000 or more. Offer ends Dec. 31, 2025. Terms apply.
2. Use CDs or T-bills for mid-term goals
For money you don't need right away -- like a home upgrade fund, a big trip, or just a cushion for the year ahead -- CDs and T-bills are a great place to park it.
Certificates of deposit (CDs) are offered by banks and often pay more than a standard savings account if you commit your funds for a few months or a year. Most are FDIC-insured, and some even let you withdraw early with just a small penalty.
Treasury bills (aka T-bills) are decent short-term, safe investments too. They are basically government bonds that you buy at a discount and get the full value when they mature. It's one of the safest places you can put your money, backed by the U.S. government.
Right now, both top CDs and T-bills are paying roughly 3.50% to 4.50% APY, depending on the term you choose.
3. Invest long-term cash in a broad market index fund
If your short- and mid-term needs are squared away, it's time to think long-term.
This is where low-cost index funds or ETFs come in. Instead of timing the market or picking stocks, you can just ride the wave of the entire market, which has historically grown around 7% to 10% per year on average.
I personally use a simple S&P 500 index fund inside my Roth IRA and brokerage account. It's set-it-and-forget-it investing at its finest.
And this is where your cash has the potential to outpace inflation, beat rising prices, and grow into something truly life-changing over time.
Want to start investing the easy way? Check out our list of beginner-friendly brokers and index fund picks.
Give your dollars a job
Sure, it's always handy to keep a few bills at home you can pull out in a pinch.
But keeping large amounts of cash at home is like hiring a security guard who sleeps on the job. It's a false sense of security that can end up doing more harm than good.
You don't need a financial advisor, a trading app, or a finance degree -- just a simple plan that puts every dollar to work.
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.