However, many of them also may want to evaluate where they’re keeping that money, experts say.<\/p>\n
About half \u2014 51% \u2014 of women hold their non-retirement funds<\/a> either in traditional checking or savings accounts, or in physical cash, according to Vanguard’s nationally representative survey of 1,007 adult women conducted in April. <\/p>\n Almost half of those cash savers \u2014 46% \u2014 have most of that money in accounts that earn less than 3%, which currently trails the rate of inflation<\/a>. Another 26% don’t know what interest rate they are earning.<\/p>\n “A lot of times people just don’t have money in the right place because of inertia,” said certified financial planner Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida, and a member of the CNBC Financial Advisor Council<\/a>.<\/p>\n More from Women and Wealth:<\/p>\n “They might have it in a checking account and then just move money to a savings account at that same [bank], but it pays low interest,” McClanahan said.<\/p>\n Inflation is running at 3.3% annually<\/p>\n The consumer price index<\/a>, a key inflation measure, rose 3.3% in March<\/a> from a year earlier, driven largely by a spike in energy prices<\/a> due to the effects of the Iran War, which started Feb. 28<\/a>. That yearly inflation rate was up from 2.4% in February.\u00a0<\/p>\n While inflation is a normal part of the economy \u2014 and is now far below the 9.1% pandemic-era peak hit in June 2022 \u2014 the current rate exceeds the Federal Reserve<\/a>‘s goal of 2% annually.\u00a0<\/p>\n In general, money that sits in an account earning less than the inflation rate is losing purchasing power over time. While cash provides liquidity, where you keep it can make a meaningful difference in whether it’s helping you combat the impact of inflation.<\/p>\n “Cash has never really kept up with purchasing power,” McClanahan said. “What you want to do is make sure you’re earning the highest interest rate for that type of [savings].”<\/p>\n For short-term funds \u2014 money you may need within the next several years \u2014 you shouldn’t try to take on too much risk.<\/p>\n High-yield savings, money market accounts are options<\/p>\n For instance, McClanahan said, high-yield savings accounts are an option.<\/p>\n Some of those top-yielding accounts currently pay about 4% annually, according to recent data from Bankrate<\/a>. That’s compared to a national average savings account annual yield of 0.59%.<\/p>\n Instead of simply using a traditional savings account at a bank where you also hold a checking account, “you just have to take one extra step and find a high-yield savings account that pays higher interest and link it to your checking account,” McClanahan said.<\/p>\n Additionally, some money market accounts pay interest comparable to high-yield savings accounts, said CFP Lazetta Rainey Braxton, founder and managing principal of virtual firm The Real Wealth Coterie. She is also a member of the CNBC Financial Advisor Council.<\/p>\n Money market accounts also often come with check-writing ability or debit card access<\/a>. However, they may also require a higher minimum balance than savings accounts.<\/p>\n Other safe options may be less liquid<\/p>\n Beyond those accounts, you can also consider certificates of deposit<\/a>, or CDs, as well as U.S. Treasury bonds if the money doesn’t need to be available to you right away.<\/p>\n “You have more liquidity with money markets and high-yield savings accounts,” Braxton said. “But some people do the tradeoff to not have access immediately for additional yield.”<\/p>\n CDs have a set term that ranges from a few months to five or more years. At maturity, your bank returns your principal plus the interest it guarantees. However, this makes them less liquid: If you cash out early, you’ll typically pay a penalty for doing so.<\/p>\n While the average national annual yield for one-year CDs is 1.92%, you may be able to find some that pay 4% or more, according to Bankrate.<\/p>\n Treasury bonds are also a relatively safe place to put cash, but they vary in liquidity and interest payments. Right now, for instance, a three-month <\/a>Treasury has about a 3.6% yield.<\/p>\n The U.S. Treasury also issues savings bonds. For example, Series I <\/a>bonds that are purchased May 1 through Oct. 31 will pay 4.26%<\/a>. That interest rate is up from the 4.03% yield<\/a> that was in place through April 30. The rate paid is adjusted every six months by the Treasury Department and depends on inflation.<\/p>\n However, when you purchase I bonds<\/a>, you can’t access the money for at least one year, and if you cash out before five years, you lose three months of interest. The minimum purchase is $25, and the maximum per person per calendar year is $10,000 for electronic purchases. You also must purchase them through Treasury Direct<\/a>, which means setting up an account on that website.<\/p>\n![\"How](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/05\/1778256155_74_108259360-1769751047868-gettyimages-2149601119-dscf7670.jpeg\")
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