Here’s Why Millionaires Rarely Use Savings Accounts Like the Rest of Us

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Generally, when people think about building wealth, they assume that keeping money in a high-yield savings account is a smart move. After all, it’s safe, it’s easy to access, and it even earns a little interest. But here’s the truth: Most millionaires don’t treat savings accounts the way the average person does.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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Click here to read our full review for free and apply in just 2 minutes. So why don’t the wealthy park their cash in savings like everyone else? And what do they do instead? Let’s take a closer look.1. Millionaires hate losing money to inflationSavings accounts might keep your money safe, but they can also cause you to lose purchasing power over time. Even with high-yield savings accounts offering around 3.00% to 4.00% APY, inflation can outpace those returns. For example, if inflation is running at 6% and your savings account returns 4%, you’re actually losing 2% in real value every year.Millionaires understand this, which is why they don’t let large amounts of cash sit in savings accounts for too long.2. They prioritize investing over savingThe average person might deposit money into a savings account and feel secure knowing it’s FDIC insured. But millionaires see money as a tool for growth. Instead of letting it sit in a low-yield account, they invest in:The stock market: The S&P 500 has returned an average of 10% annually over the long run.Real estate: Property values tend to appreciate over time, plus rental income provides cash flow.Private businesses: Many millionaires either own or invest in businesses, generating higher returns than a savings account ever could.If you want to grow your wealth like a millionaire, consider shifting excess savings into stocks and exchange-traded funds (ETFs).Start putting your money to work for you today. Check out our list of best online brokers.3. They keep just enough cash for liquidityThis doesn’t mean millionaires don’t use savings accounts at all — they do, but with a strategy in mind. Typically, they keep just enough in cash for:Emergency expenses: A liquid fund covering three to six months of expenses.Short-term purchases: Any big expenses coming up within the next year.Opportunistic investments: Having cash ready to jump on good investment deals.The rest? They put it to work in higher-yielding assets.What should you do?You don’t need to be a millionaire to start managing your money like one. Here are a few steps to take right now:Keep an emergency fund in a high-yield savings account, but don’t hoard excess cash there. Have enough to cover three to six months of expenses.Invest in the stock market through index funds or ETFs to grow your money over time. Pick a great online broker today and let the stock market start working for you.Explore higher-yield alternatives like money market accounts or Treasury bonds for extra liquidity.If you’re ready to take your finances to the next level, start by reviewing your savings strategy. Are you using your money like a millionaire — or letting it lose value in a low-interest account? Make adjustments as needed to ensure your cash is working for you.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Generally, when people think about building wealth, they assume that keeping money in a high-yield savings account is a smart move. After all, it’s safe, it’s easy to access, and it even earns a little interest. But here’s the truth: Most millionaires don’t treat savings accounts the way the average person does.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

So why don’t the wealthy park their cash in savings like everyone else? And what do they do instead? Let’s take a closer look.

1. Millionaires hate losing money to inflation

Savings accounts might keep your money safe, but they can also cause you to lose purchasing power over time. Even with high-yield savings accounts offering around 3.00% to 4.00% APY, inflation can outpace those returns. For example, if inflation is running at 6% and your savings account returns 4%, you’re actually losing 2% in real value every year.

Millionaires understand this, which is why they don’t let large amounts of cash sit in savings accounts for too long.

2. They prioritize investing over saving

The average person might deposit money into a savings account and feel secure knowing it’s FDIC insured. But millionaires see money as a tool for growth. Instead of letting it sit in a low-yield account, they invest in:

• The stock market: The S&P 500 has returned an average of 10% annually over the long run.
• Real estate: Property values tend to appreciate over time, plus rental income provides cash flow.
• Private businesses: Many millionaires either own or invest in businesses, generating higher returns than a savings account ever could.

If you want to grow your wealth like a millionaire, consider shifting excess savings into stocks and exchange-traded funds (ETFs).

Start putting your money to work for you today. Check out our list of best online brokers.

3. They keep just enough cash for liquidity

This doesn’t mean millionaires don’t use savings accounts at all — they do, but with a strategy in mind. Typically, they keep just enough in cash for:

• Emergency expenses: A liquid fund covering three to six months of expenses.
• Short-term purchases: Any big expenses coming up within the next year.
• Opportunistic investments: Having cash ready to jump on good investment deals.

The rest? They put it to work in higher-yielding assets.

What should you do?

You don’t need to be a millionaire to start managing your money like one. Here are a few steps to take right now:

• Keep an emergency fund in a high-yield savings account, but don’t hoard excess cash there. Have enough to cover three to six months of expenses.
• Invest in the stock market through index funds or ETFs to grow your money over time. Pick a great online broker today and let the stock market start working for you.
• Explore higher-yield alternatives like money market accounts or Treasury bonds for extra liquidity.

If you’re ready to take your finances to the next level, start by reviewing your savings strategy. Are you using your money like a millionaire — or letting it lose value in a low-interest account? Make adjustments as needed to ensure your cash is working for you.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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