Could You Be Earning More? Understanding High-Yield Options

With a shifting economic environment, people are taking a more intentional approach to their finances. According to the 2026 WSFS Money Trends Survey, they are cutting nonessential expenses, reducing their reliance on credit, and focusing on greater financial stability.

But managing spending is only part of the equation. Where you keep the money you have saved can also make a meaningful difference.

Our survey found that 87% of people use a traditional savings account, yet many remain unfamiliar with alternatives that may offer higher interest rates. Nearly a quarter (24%) were unfamiliar with high-yield money market accounts, 19% were unfamiliar with money market accounts, and 18% with certificates of deposit, or CDs.

Understanding how these accounts work, and when each might be appropriate, can help you make a more informed decision about the money you have already set aside.

1. High-Yield Money Market Account: For Money You May Need Unexpectedly

A high-yield money market account operates much like a standard savings account, but with one critical distinction: it offers premium interest rates higher than traditional accounts.

• Best used for: Emergency funds, short-term savings, or money you might need on short notice.
• How it works: Funds remain fully liquid, meaning you can deposit or withdraw money whenever unexpected expenses arise. The account earns competitive compound interest, helping cash maintain purchasing power while remaining accessible. However, minimum balance requirements, fees, and transaction limits may apply.
• The takeaway: If you are keeping money in a traditional savings account for unexpected expenses or near-term needs, a high-yield money market may allow you to earn more interest without giving up convenient access to your funds.

2. Money Market Accounts: Higher Yields with Direct Access

A money market account bridges the gap between a high-yield money market account and a checking account. It combines tiered interest rates with convenient access to your funds, while maintaining a lower minimum balance requirement.

• Best used for: Planned, near-term expenditures such as annual tax bills, home maintenance funds, or upcoming tuition payments.
• How it works: Funds remain fully liquid, meaning you can deposit or withdraw money whenever unexpected expenses arise. The tiered interest rates allow for larger balances to earn a higher return. However, minimum balance requirements, fees, and transaction limits may apply.
• The takeaway: If you have money earmarked for a significant upcoming expense and want to earn interest while retaining direct access, a money market account may offer an appropriate balance of flexibility and earning potential.

3. Certificates of Deposit (CDs): Guaranteed Growth for Fixed Timelines

When immediate access to funds is not required, a certificate of deposit offers a way to lock in a return over a fixed period.

• Best used for: Savings tied to a defined timeline, such as a future down payment, wedding, vacation, or another planned expense.
• How it works: You deposit a set amount of money for a specific term, ranging from a few months to several years. In exchange for leaving the funds untouched until the maturity date, there is a fixed interest rate that will not fluctuate with market changes.
• The takeaway: If you have a clear financial goal and are confident you will not need the funds before a certain date, a CD can provide a return you can anticipate while reducing the temptation to spend the money prematurely.

Match the Account to the Goal

Getting more from your savings does not require a complicated investment strategy. It starts with asking a few practical questions:

• When will I need the money?
• How easily do I need to access it?
• Does the account have fees or minimum balance requirements?
• Is its interest rate fixed or variable?

The answers can help point you toward the right option. Money reserved for an emergency may belong to a high-yield money market account. Funds intended for a planned expense may be a better fit for a money market account. Savings that can remain untouched until a specific date may benefit from a CD.

An Associate can help you review these considerations and determine which savings option best aligns with your needs. Whether the goal is keeping emergency funds accessible, preparing for a major expense, or saving toward a longer-term milestone, a conversation with a trusted advisor can be a useful starting point.