Losing a job can be stressful but getting a severance check can soften the blow. And there are ways to use that money to improve your financial footing.
First things first, if you're carrying high-interest debt, that lump sum could be a chance to wipe out balances that have been draining your bank account. If your debt is manageable, your severance might be better off parked in a safe place while you figure out your next move. That could mean building or beefing up your emergency fund, especially if you're unsure how long your job search will take.
Here's a look at some of the best places to stash your severance so it's safe, accessible and earning interest.
- New Client Boost (select affiliate-exclusive):Earn up to 4.55% APY. Get a 3.55% base APY from program banks plus a 0.75% APY boost for 3 months (on up to $150k balance), bringing the introductory rate to 4.30% APY.
- Direct Deposit + Investing increase: Add an ongoing +0.25% APY if you set up direct deposits of at least $1,000/month or $2,500 in recurring deposits and also open and fund a Wealthfront Investing Account. This brings total APY to 4.55% for the first 3 months, and 3.80% APY after.
- Up to $8M in FDIC insurance eligibility. Free 24/7 instant withdrawals to eligible accounts. Mobile check deposit. Bucket savings with categories.
- Funds are swept to program banks who accept and maintain deposits, pay interest, and provide FDIC insurance for those deposits up to the applicable limits. Conditions apply.
- 3.55% Base Annual Percentage Yield (APY) as of 09/18/2026 and is subject to change.
- Cash Account offered through Wealthfront Brokerage LLC. Wealthfront is not a bank. Individual experiences and outcomes will differ.
Places to store severance pay
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For high APY
The EverBank Performance Savings account currently offers one of the highest APYs we've seen among high-yield savings accounts. These rates change frequently but EverBank's has ranked among the more competitive options. That's especially notable as rates have come down following the Federal Reserve's rate cuts in September. Parking your severance in an account like this allows your money to earn interest, which can be helpful if you want your cash to grow while you figure out your next move.
EverBank Performance℠ Savings
Annual Percentage Yield (APY)
3.90% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
Up to 20 external transfers per day, with a maximum of 10 transfers from a linked external account into your EverBank accounts and 10 transfers from EverBank to external accounts. Up to 50 total external transfers per month.
Excessive transactions fee
None
Overdraft fees
N/A
Checking account
Yes
ATM card
Yes
Terms apply.
Pros
- Earns a competitive APY with no minimum balance.
- Free ATM card and no ATM fees
Cons
- Limited branch locations
For easy liquidity
High-yield savings accounts are generally strong in terms of liquidity but most don't allow direct spending, so you typically need to transfer funds to your primary checking account before spending them. Depending on the bank, transfers can take a few business days.
One option that adds flexibility is the UFB Portfolio Savings account, which comes with a free ATM card. While UFB doesn't have physical branches, it offers access to more than 90,000 fee-free ATMs nationwide through networks like Allpoint, MoneyPass and Chase. That can make it easier to access your cash if you need it quickly.
- Free ATM card with unlimited withdrawals and access to over 90,000 fee-free ATMs nationwide, one of the broadest networks for a savings account.
- Earns a competitive APY with no caps, no minimum deposit and no monthly fees, so your full balance is always earning.
- Option to pair with UFB Freedom Checking to earn an even higher rate on your savings.
- Free transfers between direct deposit accounts, mobile check deposit, and online and SMS banking make managing your money easy from anywhere.
- Strong security features, including fraud protection, SSL encryption and automatic logouts for added peace of mind.
- Overdraft fees may apply, though overdraft protection is available to help avoid them.
- Withdrawals and transfers beyond six per month incur a $10 excessive transaction fee.
- No physical branch locations, so all banking is handled online or by phone.
Money market accounts can offer similar APYs to high-yield savings accounts but with added checking-style features, such as check-writing privileges and debit card access. For example, the EverBank Performance Money Market account includes checks and a debit or ATM card, and it reimburses out-of-network ATM fees. That combination can appeal to savers who want competitive yields with more day-to-day access.
EverBank Performance® Money Market
Annual Percentage Yield (APY)
Up to 3.80% APY
Minimum balance
None
Monthly fee
None
Offer checks?
Yes
Offer debit/ATM card?
Yes
See our methodology, terms apply.
Pros
- Above-average APY
- No minimum balance
- No monthly fee
- Access to checks and debit/ATM card
- No ATM fees and automatic reimbursements for ATM fees on U.S. ATM transactions (*Requires monthly average daily balance of at least $5,000. For balances under $5,000, Everbank will reimburse clients up to $15 in ATM fees monthly)
- Physical branch locations
Cons
For no fees
If you want an account with minimal costs and no hoops to jump through, the Marcus by Goldman Sachs High Yield Online Savings account stands out. It charges no monthly fees, has no minimum deposit requirement and no minimum balance requirement. The account is simple to use and offers easy mobile access, making it a straightforward place to deposit your severance and let it grow without added conditions.
Marcus by Goldman Sachs High Yield Online Savings
Annual Percentage Yield (APY)
3.40%
Minimum balance
None
Fees
No monthly maintenance, overdraft or excessive transactions fee
Maximum transactions
No limit to the number of withdrawals or transfers you can make
Checking account
No
ATM card
No
Terms apply.
Pros
- No minimum deposit, no minimum balance and no monthly fees, making it one of the most straightforward savings accounts to open and maintain.
- No limit on withdrawals or transfers, so you can move your money as often as you need without penalty.
- Earns a competitive APY with no conditions or hoops to jump through.
- Easy-to-use mobile app makes managing your savings simple from anywhere.
- Also offers no-fee personal loans through Marcus, a useful perk if you ever need to borrow.
Cons
- Higher APYs are available elsewhere, so it may not be the top pick if maximizing your rate is the priority.
- No checking account option, so you’ll need a separate account for everyday spending.
- No ATM access or debit card, making it best suited as a dedicated savings account paired with another bank.
The Ally Bank Money Market Account is another low-cost option with a competitive APY and daily compounding. There are no balance tiers, no monthly maintenance fees and no minimum balance requirement. Customers also get fee-free access to more than 75,000 ATMs through the Allpoint and MoneyPass networks, plus up to $10 per statement cycle in out-of-network ATM fee reimbursements.
Ally Bank® Money Market Account
Annual Percentage Yield (APY)
Up to 3.00% APY
Minimum balance
None
Monthly fee
None
Offer checks?
Yes
Offer debit/ATM card?
Yes
Terms apply.
Pros
- Above-average APY with no minimum balance or monthly fees required to earn it.
- Comes with a debit card and check-writing privileges, giving you more flexibility to access your funds than most money market accounts offer.
- Fee-free access to 75,000+ ATMs nationwide, plus up to $10 per month in out-of-network ATM fee reimbursements.
- No overdraft fees, so you’re not penalized if your balance runs short.
Cons
- No physical branch locations, so all banking is handled online or by phone.
For large balances
If your severance check is substantial, you may not want to keep all of it in one place. For emergency savings, experts typically recommend setting aside at least 3 to 6 months' worth of expenses but you can add more if you prefer.
If your severance exceeds what you need for short-term bills and a healthy emergency cushion, the rest could be invested for longer-term growth. A taxable brokerage account, like those offered by Charles Schwab or Fidelity, is great because it allows you invest in a wide range of assets, including low-cost index funds, ETFs and individual stocks with no annual contribution limits or early withdrawal penalties.
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Schwab offers courses, educational articles, videos, and webinars for investors at every level, plus advanced screeners, research tools, and market insights through the Schwab Center for Financial Research.
Terms apply.
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades; no transaction fees for over 4,000 mutual funds
- thinkorswim® trading platform offers advanced charting, strategy testing and multi-device access
- Robo-advisor Schwab Intelligent Portfolios® available with no advisory fee or commissions
- Access to on-demand advice from Schwab investment professionals
- Nearly 400 brick-and-mortar branches across the U.S. for in-person support
Cons
- $5,000 minimum required for Schwab Intelligent Portfolios® robo-advisor
- $0.65 fee per options contract
- Tax-loss harvesting only available on balances of $50,000 or more within Intelligent Portfolios®
- High cash allocation requirement in Intelligent Portfolios® may limit returns compared to competitors
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over, which includes access to unlimited 30-minute coaching calls with a Fidelity advisor and tax-loss harvesting on taxable accounts).
Bonus
None currently. Check Fidelity's promotions page for the latest offers here.
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity's mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
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