More and more Americans are choosing to move their funds from traditional checking and savings accounts to investment income vehicles.

What Happened: A study by the JPMorganChase Institute, which analyzed data from 4.7 million households, found that total cash reserves are increasing--driven by rising allocations to brokerage accounts, money market funds, and certificates of deposit, according to a report by ABC News.

Although inflation-adjusted balances in checking and savings accounts have remained flat, total cash reserves have been rising since mid-2024 and are approaching historical growth trends when broader account types are included.

“Families across many income bands are now seeing a turnaround in their total cash,” said Chris Wheat, president of the institute. He noted that the trend could be temporary and that the institute currently lacks enough evidence to determine if it will persist.

The study also found that households earning less than $35,000 annually saw their total cash balances grow at a yearly rate of 5% to 6%.

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Why It Matters: The Federal Reserve, led by Jerome Powell, had left its benchmark rate unchanged at 4.25%-4.50% for a sixth straight meeting in June 2025. This decision resulted in microscopic earnings for everyday depositors, with the average interest on basic checking remaining at 0.07% and standard savings paying just 0.38%.

However, money market funds hit a record $7.4 trillion in July 2025, as highlighted by billionaire Bill Ackman, founder and CEO of Pershing Square Capital Management L.P.. This trend, along with the growth in total cash reserves, suggests that Americans are increasingly looking for alternative investment vehicles to maximize their earnings amid economic uncertainty.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.