Americans pulled roughly $1.2 trillion out of low-yield checking and savings accounts in 2024-2025 and moved that cash into money market funds and brokerage accounts. The Federal Reserve's H.6 money stock data and the Investment Company Institute's flow reports both confirm the shift, which kept accelerating into early 2026.
The story behind the move is simple. Big bank savings accounts kept paying close to nothing while money market funds were paying 4.5% to 5.0%, and brokerage cash sweep programs were paying 3.5% to 4.5%. With inflation still running above 2.5%, every dollar sitting in a 0.40% national-average savings account was losing real purchasing power.
Here's what the data actually shows, why it matters for your money, and how to think about whether the shift fits your own situation.
The Data: Where Cash Is Moving
Three sources of public data tell a clear story:
- Federal Reserve H.6. Total commercial bank deposits dropped by about $580 billion in 2024 (the largest non-recession outflow on record), and stayed roughly flat through 2025.
- Investment Company Institute. Money market fund (MMF) assets crossed $7.3 trillion in early 2026, up from $5.8 trillion at the start of 2024, an increase of more than $1.5 trillion.
- FINRA brokerage data. Total brokerage account openings hit record highs in 2024 and 2025, with self-directed accounts at firms like Robinhood, Public, and Schwab adding millions of new users.
The pattern: cash that used to sit in checking earning 0.01% to 0.10% is now sitting in money market funds, T-bill ETFs, and brokerage cash sweeps earning 4% to 5%. On $10,000, that's the difference between $1 a year and $450 a year.
Why People Are Moving Money
Four forces drove most of the migration.
Rates stayed higher for longer. The Federal Reserve raised rates aggressively in 2022-2023, then held them in restrictive territory through 2024 and most of 2025. Money market yields followed, while big bank savings rates barely moved.
Mobile apps made it easy. Robinhood, Public, Fidelity, and Schwab all let you move money in minutes from a phone. The friction that used to keep cash in a checking account (drive to the bank, fill out a form) is gone.
Brokerage cash sweeps became competitive. Public's high-yield cash account, for example, has paid 4%+ APY without locking the money up, making it functionally similar to a savings account but with much better yield.
Inflation made standing still feel expensive. Even with inflation cooling in 2025-2026, the recent memory of 2022's 9% peak made savers more rate-sensitive than they had been in a decade.
The Two Most Common Destinations
If you look at where the money went, two product types stand out.
Money market funds and T-bill ETFs. MMFs invest in short-term government and high-quality corporate paper. They pay current short-term yields, which move with the Fed funds rate. T-bill ETFs like SGOV and BIL do similar work and trade like stocks.
Robinhood is one of the most popular places people opened a brokerage in 2024-2025. The platform offers commission-free trading on stocks, ETFs, options, and crypto, plus a Gold membership that pays competitive yield on uninvested cash. For savers moving from a low-yield bank account, the simplicity of buying SGOV or holding cash in Gold is the bridge.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
Brokerage cash sweep accounts. Some brokerages now pay money-market-like yields directly on uninvested cash, no separate purchase required.
Public has become a favorite for this approach. Public offers a high-yield cash account that has paid 4%+ APY, plus access to stocks, bonds, options, crypto, and Treasury bills in one app. The high-yield-cash plus T-bill combination is a clean way to keep emergency-fund money working harder without giving up liquidity.
Public
Public
Investing for those who take it seriously. Invest in stocks, bonds, options, crypto & more.
Standout feature
A 5%+ yield Bond Account paired with 3.3% APY on cash — Public is one of the only consumer apps where idle and conservative money is treated as seriously as the equity portfolio.
Fees
Free
Pros
• Invest in stocks, bonds, crypto & more• Earn 3.3% APY* on your cash with no fees• 1% match when you transfer your portfolio• Lock in a 5%+ yield with a Bond Account
Cons
Customer support is in-app and email only, no phone
Both Robinhood and Public are commission-free, mobile-first, and have onboarding flows that take less than 15 minutes. That accessibility is a big part of why the shift accelerated.
The Stay-in-Banking Option: Higher-Yield Checking and Savings
Not everyone wants to move money into a brokerage. A growing number of fintech-style banks offer HYSA-like yields directly inside a checking or savings account, with FDIC insurance and no securities settlement friction.
Current Banking offers up to 4.00% APY on qualifying balances when you set up a $200+ direct deposit, with no monthly fee, no minimum balance, and paychecks up to two days early. For savers who want higher yield without leaving the banking system, this is a competitive alternative to opening a brokerage.
Current Banking
Current Banking
Current is a mobile-first banking app with no monthly fee and no minimum balance. Members can earn up to 4.00% APY with a qualifying direct deposit of $200, receive direct-deposit paychecks up to 2 days early, and overdraft up to $200 fee-free.
Standout feature
4.00% APY on Savings Pods (with a $200+ qualifying direct deposit) plus paycheck up to 2 days early — both included on the standard account for free
Fees
Free
Pros
$0 monthly fee; up to 4.00% APY on Savings Pods with qualifying direct deposit; paycheck up to 2 days early;
Cons
No physical branches
The choice between brokerage and high-yield bank really comes down to what you need the money for. Emergency funds and bill money fit better in a bank account (instant access, FDIC insurance, easier to use as a checking account). Money you don't need for 6+ months can earn more in a brokerage MMF or T-bill ETF.
Risks to Weigh Before You Move
The shift to brokerage cash and MMFs is mostly sensible at current rates, but there are real trade-offs.
- MMFs are not FDIC insured. Money market funds are SIPC-protected against broker failure, but not insured against breaking the buck (the rare case where the fund's NAV drops below $1). The risk is small but real.
- Cash sweep yields move with the Fed. When the Fed cuts rates, MMF and sweep yields drop quickly. The 4% to 5% you're earning today may be 2% to 3% in a year if cuts come faster than expected.
- T-bill ETFs have small price swings. SGOV and BIL are stable, but they're not exactly $1.00 per share. Quick sells in volatile markets can produce small losses.
- Brokerage settlement adds friction. A sale of an MMF or T-bill ETF takes 1 to 2 business days to settle before you can transfer cash to checking. Not a problem for planned spending, but it can sting in an emergency.
A good rule for most savers: keep one to two months of expenses in a high-yield bank account for instant liquidity, and move the rest to a brokerage cash sweep or MMF where it can earn more.
Tracking the Shift Yourself
With cash split across a bank, a brokerage, and maybe a separate MMF, it's easy to lose track of total exposure and yield. Monarch Money connects all your accounts (bank, brokerage, MMF, retirement) into one dashboard. You see net worth, cash drag, and total yield in one place, so the shift you make on purpose isn't lost in account-by-account opacity.
Monarch Money
Monarch Money
Monarch Money simplifies personal finance by uniting all your accounts in one place—secure, ad-free, and built for couples. 50% off your first year when you sign up via Firstcard!
Standout feature
#1 rated budgeting app (WSJ). 50% off first year via Firstcard.
Fees
$14.99/mo or $99.99/yr ($8.33/mo)
Pros
Beautiful, ad-free interface (4.9★ App Store). Best budgeting app for couples and families. Comprehensive account syncing and cash flow forecasting.
Cons
No free tier — requires paid subscription.
How to Make the Shift, If You Decide To
If you have $10,000 sitting in a 0.40% savings account, the rough mechanics of a typical move look like this in 2026:
- Open a brokerage account (Robinhood or Public take less than 15 minutes).
- Move 60-70% of the cash to the brokerage. Either hold it in the high-yield cash sweep or buy a T-bill ETF like SGOV.
- Keep the rest in a high-yield checking or savings account for immediate spending and emergencies. Current Banking or your existing bank's HYSA both work.
- Set up auto-transfers so new income flows into the brokerage by default, with a separate amount swept to checking for bills.
Do not move retirement money, tax-loss harvesting balances, or already-invested portfolios as part of this process. The shift is specifically about idle cash sitting in low-yield bank accounts.
Frequently Asked Questions
How much money has actually moved from checking/savings to investments?
Money market fund assets grew by more than $1.5 trillion from 2024 to early 2026 (ICI data), and bank deposits dropped by about $580 billion in 2024 (Fed H.6 data). The two trends together suggest more than $1 trillion in net flow from low-yield bank accounts to brokerage cash and MMFs.
Is a brokerage cash sweep account safer than a bank savings account?
Not quite. Bank savings accounts are FDIC-insured up to $250,000. Brokerage cash sweeps are SIPC-protected and often re-deposited at partner banks, but the protections are slightly different. For day-to-day spending money, a bank account is simpler. For idle savings, a brokerage cash sweep can earn much more.
Will I owe taxes on the yield from a money market fund?
Yes, typically. MMF yields are taxed as ordinary income at the federal level. T-bill ETF yields are exempt from state and local taxes, which can be a small advantage if you live in a high-tax state.
Should I move all my savings into a brokerage?
No. Most personal finance professionals recommend keeping at least one to two months of expenses in a high-yield bank account for instant liquidity, and moving longer-term cash to a brokerage MMF or T-bill ETF. Always weigh your own emergency-fund needs first.
