Wealthy individuals are withdrawing cash from traditional checking and savings accounts, channeling over $120 billion into equities, private markets, and alternative assets ahead of year-end. This strategic reallocation reflects growing dissatisfaction with near-zero interest rates and a renewed focus on capital preservation and growth.
- Over $120 billion has been withdrawn from checking and savings accounts by high-net-worth individuals since October 2025
- JPM, BAC, and MS report significant outflows, with wealth management divisions experiencing higher inflows
- SPY and QQQ are among top ETF destinations, reflecting continued confidence in U.S. equities
- Private equity, venture capital, and REITs are seeing increased capital deployment from wealthy investors
- Year-end tax planning and rebalancing are key drivers of the reallocation timing
- Banks face pressure to improve deposit yields or risk client attrition
A growing number of high-net-worth Americans are reallocating funds from low-yielding bank deposits into higher-return investment vehicles, according to internal financial firm data. The movement, observed across major U.S. banks including JPMorgan Chase (JPM), Bank of America (BAC), and Morgan Stanley (MS), has seen more than $120 billion transferred from checking and savings accounts since October 2025. This shift is particularly pronounced among individuals with over $1 million in liquid assets, who are prioritizing yield and inflation protection amid stagnant deposit rates. The reallocation is not limited to traditional investments. A significant portion of the capital is flowing into exchange-traded funds such as SPY and QQQ, which offer exposure to broad market indices and dividend growth. Additionally, private equity, venture capital, and real estate investment trusts (REITs) are attracting increased allocations, signaling a move away from passive liquidity toward active capital deployment. Wealth managers note that the timing—just before year-end—aligns with tax-loss harvesting and rebalancing strategies, further accelerating the outflow. The implications for the financial services sector are substantial. As demand for low-cost, high-liquidity accounts declines, banks may face pressure to raise interest rates on deposits or reduce fees to retain affluent clients. Institutions with strong wealth management arms, such as JPM and MS, are positioned to benefit from the increased asset under management, while pure retail banks like BAC may see margin compression. The trend also underscores a broader shift in investor sentiment, with capital increasingly seeking performance over safety in a historically low-rate environment.