Banking Expert: 4 Accounts That Help Your Money Grow in Any Economy

As inflation and interest rates rise, many Americans are trying to save more — but keeping too much cash in low-interest accounts could be quietly costing them.

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“Cash parked in low-yield savings or in low-yield checking accounts effectively erodes in real value,” said Gabe Krajieck, CEO of Kasasa, a financial services and tech provider for community banks and credit unions. “While the dollar amount remains static, the purchasing power of those dollars declines.”

Here are the accounts Krajieck said to keep your money in instead during times of high inflation.

High-Yield Checking or Savings Accounts

Krajieck recommended keeping money in high-yield accounts with realistic qualification criteria.

“Instead of accepting [nearly 0%] base [interest] rates, consumers benefit from seeking accounts that reward active usage while still maintaining full FDIC or NCUA coverage,” he said.

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Reward Accounts That Match Your Everyday Banking Habits

Some accounts will reward you for things you already do, like making direct deposits, debit card usage or logging into online or mobile banking.

“The premium yield is earned by reinforcing your primary financial institution relationship, rather than by shopping rates alone,” Krajieck said.

Accounts With Clear APYs and No Hidden Rate Tiers

With some accounts, the advertised interest rate is not what you will actually get. Krajieck recommended seeking out accounts at institutions that advertise transparency around rate caps and qualification tiers.

“A high advertised rate may come with balance tiers or qualification catches,” he said. “It’s important to evaluate the ‘all-in’ yield for the balances you realistically hold.”

A Mix of Long-Term Growth and Liquid Accounts

Ideally, you keep your cash in diverse accounts, such as liquid banking accounts and high-growth investment accounts.

“For portions of your cash you may need access to, you want flexibility, no or low withdrawal penalties, and instant access,” Krajieck said. “For longer-term holdings, consider tiered structures or premium accounts.”

The bottom line is, don’t let your cash simply sit and lose value.

“Evaluate where your money is, what rate you’re earning net of inflation and real purchasing power,” Krajieck said, “and whether your institution is your primary one or just a parking lot.”

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This article originally appeared on GOBankingRates.com: Banking Expert: 4 Accounts That Help Your Money Grow in Any Economy