Are you storing your excess cash in the right account? (9 21 25)

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Is your cash reserve sitting in a low-interest savings account, earning next to nothing? You might be missing out on a significant opportunity. Today, we explain why it's a mistake to let your money sit idle and reveal the best safe and liquid places to keep your cash reserve, so it can work harder for you.

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

• Where you should keep your cash reserve

• Gold is at all-time highs. Should you invest?

• Key questions to know when it’s time to downsize

• Is your portfolio too safe?

• Q&A: Are any stocks recession-proof?

• Smart money move of the week: Shop your auto insurance.

💵 Where Should You Keep Your Cash Reserve?

You worked hard to build a cash reserve. Now it’s time to make sure it’s working for you.

Leaving thousands — or even hundreds of thousands — in a traditional savings account that pays 0.01% is essentially a gift to your bank. You’re letting them use your money for free while you get nothing in return.

The good news? You don’t have to take risks to do much better. Today, there are multiple safe, liquid options, like high-yield savings accounts (HYSAs), money market accounts (MMAs), and money market funds (MMFs).

Here’s the key: the difference in yield between them isn’t always that big. Sometimes money market funds pay more than HYSAs, sometimes the reverse. The spread is often less than a percentage point. Even CDs don’t always give you a premium over high-yield savings.

So the real decision isn’t “what’s the absolute best yield today?” It’s which of these options is the best fit for me and my situation.

Don't let your money sit idle in a low-interest account. In the full article, we break down the core products that offer real interest and compare the yields, explore tax and insurance considerations, options for high-salary earners or people with big deposits, tips for savers who already have a brokerage account, and Clark Howard’s bottom line on cash savings.

📚️ Recommended Reading

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✅ Poll: What's Your Take?

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Poll Results From Our September 7 Newsletter

We asked: “How many of the 7 Clark Smart Investor traits do you have?”

Here’s how you answered:

• 7 traits: 43%

• 5–6 traits: 41%

• 3–4 traits: 8%

• 1–2 traits: 8%

💬 Ask an Advisor

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

Renee in New York asks: What are some stocks that are recession proof?

Wes Moss says: There’s no such thing as a stock that’s truly recession-proof — but there are sectors that tend to hold up better when the economy slows. Think about what people still spend money on and where they spend it during hard times: consumer staples like groceries (ex. Procter & Gamble, Coca-Cola), utilities, healthcare, and discount retailers (ex. Walmart or Costco). These are the kinds of companies that tend to have consistent revenue, even when the economy shrinks. Some tech names with massive scale and recurring revenue (think Microsoft, Apple) can also show surprising resilience — not because they’re “recession proof,” but because they’re now essential parts of our daily lives. If you want to invest with resilience in mind, focus on broad diversification but tilt toward sectors with steady cash flow and essential products or services. That’s what tends to hold up best during economic slowdowns.

💸 Money Tip of the Week

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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