Advertiser Disclosure
Many of the offers that appear on this site are from companies from which The Motley Fool receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear) and may influence which products we write about, but our product ratings are not influenced by compensation. We do not include all companies or offers available in the marketplace.
Brooklyn Sprunger is a full-time Content Manager and Personal Finance Writer at Motley Fool Money, where she oversees product reviews and ratings while also writing about credit cards, bank accounts, investing, auto insurance, and other personal finance topics. She has worked in financial content since 2018, including more than four years at The Motley Fool. When she’s not writing or editing, Brooklyn is likely hiking and watching the Tennessee Vols.
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation.
APY = Annual Percentage Yield.
When headlines turn gloomy and markets start swinging, it's normal to wonder if your money's in the right place.
Recessions make people second-guess everything from their savings account to their 401(k). But the smartest move usually isn't pulling out of the market or stuffing cash under a mattress. It's finding the right mix of safety, liquidity, and steady return until things stabilize.
So if you're wondering where your money actually belongs when the economy slows, here's where to focus -- and why.
1. High-yield savings accounts (HYSAs)
If you only make one change, start here.
A high-yield savings account gives you immediate access to your money while keeping it protected in an FDIC-insured account. It's ideal for emergency funds and short-term savings -- the cash you might need quickly if hours get cut or unexpected expenses pop up.
Today's best HYSAs pay far more than traditional banks, and you can open one online in minutes.
Why it works in a recession:
Instant access to funds (no penalties).
FDIC protection up to $250,000 per depositor, per bank.
Competitive yields even when the stock market drops.
If you're holding thousands in a checking account earning near-zero interest, moving that cash into an HYSA is one of the safest, easiest upgrades you can make.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
up to 4.50%
Rate info
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Min. to earn: $0
Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply.
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
4.60/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
3.85%
Rate info
3.85% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $5,000
Earn a bonus of up to $300 after a one-time deposit of $25,000+
This limited-time offer to qualify for a $225 cash bonus with a minimum deposit of $25,000 or a $300 bonus with a minimum deposit of $50,000 is available to New and Existing Customers who meet the Platinum Savings promotion criteria. The Promotion begins on September 23, 2025, and can end at any time without notice. Customers will receive a $225 or a $300 bonus provided that the program requirements are met. Click here to see promotion details and terms: https://www.cit.com/cit-bank/platinum-savings/PS2025
4.40/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.10%
Rate info
The annual percentage yield (APY) is accurate as of September 30, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
The annual percentage yield (APY) is accurate as ofSeptember 30, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
If you want a place to park larger sums safely, Treasury bills and money market funds are strong options.
Treasury bills (or "T-bills") are backed by the U.S. government and mature in a few weeks to a year. Money market funds typically invest in these same short-term securities and can offer steady, low-risk returns.
If inflation is still running hot, consider Series I savings bonds or Treasury Inflation-Protected Securities (TIPS). These adjust their returns based on inflation, helping your savings keep pace with rising prices.
Why it works:
Backed by the U.S. government.
Adjusts automatically with inflation.
Long-term protection for part of your savings.
Just remember: I bonds have a one-year lockup and a penalty if you cash out before five years, so they're best for medium-term money, not emergency cash.
5. Keep investing, but shift your strategy
Even during a recession, long-term investors shouldn't abandon the market entirely. If you have decades until retirement, staying invested during a recession helps you capture the recovery when it comes.
For short-term money, though, keep it safe. But for long-term growth:
Stick to diversified index funds or ETFs.
Avoid panic-selling during dips.
Keep contributions small but steady.
Think of it this way: recession money needs two homes -- one for stability (cash, CDs, T-bills), and one for growth (long-term investments you don't touch).
How to divide it all up
There's no one-size-fits-all formula, but here's a simple framework:
Medium-term goals (2–5 years): Mix of CDs and I Bonds.
Long-term goals (5+ years): Stock market, index funds, retirement accounts.
The goal is flexibility: keep what you need soon in safe, liquid accounts, and let the rest keep working toward long-term growth.
Bottom line
Recessions test how prepared you are -- not just financially, but emotionally. The good news is, you don't have to overhaul everything to feel secure.
Start by moving your short-term cash somewhere safe and productive: a high-yield savings account, CD, or Treasury-backed investment. Then make sure your long-term money stays invested, ready for the recovery that always follows.
Because when it comes to recessions, the smartest move isn't timing the market -- it's putting your money where it can weather the storm and keep growing through it.
Share This Page
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. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Terms may apply to offers listed on this page.
APYs are subject to change at any time without notice.
JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. Synchrony Financial is an advertising partner of Motley Fool Money. SLM 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 Goldman Sachs Group, JPMorgan Chase, and Target. The Motley Fool recommends Barclays Plc, Capital One Financial, and Charles Schwab and recommends the following options: short December 2025 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.
Annual Percentage Yield (APY) is subject to change at any time without notice. Offer applies to personal non-IRA accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest in effect at that time. Visit synchrony.com/banking for current rates, terms and account requirements. Member FDIC.
