The best place for your cash depends on what you're using it for. PM Images/Getty Images
A recession may not be as likely as it seemed earlier this year, at least according to some forecasts. But economic uncertainty is still forcing us to be cautious about our finances.
From high prices to layoffs, the big financial struggles are out of our control. However, one thing we can do to help ourselves weather the ups and downs is to make sure our money is in the right place.
Keeping your cash safe can help you preserve your savings and maximize your returns, regardless of an economic downturn. But not every account is the same, and some savings strategies make more sense in the long term than in the short term.
Read more: Your Recession FAQs Answered: 5 Tips to Help You Prepare, Not Panic
💵 Where to keep your spending money
Rewards checking account
Even if your paycheck is directly deposited into your checking account, you shouldn't keep all your money there.
Your checking account funds should cover everyday spending and bills, plus a cushion for other expenses. The rest of your cash should be in an account that earns a high interest rate so it can grow. Plus, when you keep money earmarked for savings in a separate account, you're not tempted to dip into it.
You can still get returns with the right checking account. Some top high-yield checking accounts offer annual percentage yields of 1% or more, far better than the near 0% you'll get with a typical checking account.
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